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Non-monetary and indirect cost of a FCPA investigation

Tom Fox | January 15, 2018

The Man From FCPA recently spoke with Dan Chapman, CEO of Presyse Compliance, about his experience with the non-monetary costs and indirect costs of a major FCPA investigations. Chapman has led two significant internal FCPA investigations in his former CCO roles. He noted that “the biggest cost to a company during an investigation is the diversion of management resources” and further explaining, “everything stops to focus on the investigation.” This indirect cost comes largely through the time commitment of senior management, because “if senior management has to commit 20% of their time, that’s 20% that’s not going towards revenue generating, shareholder value protecting activities.”

I asked Chapman how a CCO could communicate that to somebody who has not gone through a full blown internal investigation then coupled with a federal investigation with the DOJ and FBI involved? Understanding that the all-encompassing nature of such an event is difficult to articulate, Chapman...

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