Riodan_Compliance

Running head: RIORDAN COMPLIANCE POLICY Riordan Compliance Policy Emily E. Unruh University of Phoenix Business Law LAW/531 Miriam V. Gold February 21, 2009 Riordan Compliance Policy I. Policy Statement – Plastic manufacturing companies are subject to substantial compliance risk, which is the risk of legal or regulatory sanctions, financial loss, or damage to reputation and franchise value that the company may suffer because of its failure to comply with laws, regulations, standards, or codes of conduct applicable to the business activities and functions of the company. II. Management of Compliance Risk – The management of the company’s compliance risk necessarily involves participation of Directors, Officers, Management, and the individual business units. The roles and responsibilities of the various parties in this process will be as follows: A. Directors/Officers Responsibility – The Directors and Officers are ultimately responsible for Riordan’s Compliance Program. The Directors and Officers hereby empower management to implement an effective Compliance Program by garnering the unequivocal support of all employees to adhere to the Program. Further, the each is responsible for ensuring adequate resources, including ongoing training. The Directors and Officers are responsible for oversight of management’s implementation of the compliance risk management system, including: • Approval of this Program; • Receiving quarterly management reports on the status of the compliance risk management system and Riordan’s level of adherence to compliance with applicable laws and regulations; • Ensuring that compliance issues that have been identified are resolved effectively and expeditiously by management and the affected business unit; and • At least annually, assessing the extent to which Riordan is effectively managing its compliance risk. • Periodically assess the nature and quality of the Compliance Program. B. Executive Management Responsibility – Executive Management will generally be responsible for promoting a culture of compliance throughout Riordan. In that regard, the Executive Management will: • Promote and enforce this Compliance Program as well as high standards of integrity; • Ensure that the Compliance Program is implemented and adhered to, that its standards are enforced, and that the overall compliance framework is implemented; • Ensure that managers and employees are aware of, understand, and adhere to compliance standards relevant to them, and are periodically trained; • Ensure that business units respond to compliance issues identified by the Compliance Officer and that the appropriate remedial measures are implemented; • Encourage and facilitate active cooperation and feedback from all employees, without reprisal, by ensuring open lines of communication; • Create an open, receptive, and positive attitude for promoting a compliance culture within Riordan; • Reward proactive management of compliance risks and effective controls; • Enforce among management and staff standards of compliance; and • Ensure that each employee’s job description includes a statement that the employee is responsible for compliance in his or her area of responsibility C. Departmental Responsibilities - Each employee is responsible for adhering to the Compliance Program and for following Riordan’s compliance policies and procedures. Department Managers are responsible for Compliance Program activities within their respective departments. Failure to follow the Compliance Program and applicable regulatory requirements may result in disciplinary action. Managers are responsible for reviewing compliance examination, monitoring, and audit reports, and taking corrective action on any deficiencies noted. The Compliance Officer will follow up with business areas regarding corrective action. Similarly, business areas are responsible for correcting deficiencies they detect when instituting their internal controls, also for correcting deficiencies discovered through customer complaints. Business areas should inform the Directors and Officers of such corrective actions. Expectations of each staff member are to carry out the responsibilities of his or her position in a manner that complies with Riordan’s policy and with all legal and regulatory requirements. Staff will cooperate with management to provide access to information necessary to carry out compliance responsibilities. Compliance is part of the day-to-day operations and compliance performance shall constitute an integral part of annual performance appraisals. III. Compliance Program – The Compliance Program developed reflects Riordan’s size, structure, and complexity using a risk-based approach. Periodically, Riordan will perform a Risk Assessment. The Program includes policies and procedures, training, monitoring, and a customer complaints process, as described below. A. Written Compliance Policies and Procedures – Specific Compliance Policies adopted by the Directors and Officers provide the framework for the operating procedures. Compliance Policies and Procedures are the primary reference tool for managing compliance. The Compliance Policies and Procedures should include all information needed by staff to perform a business transaction and may include regulatory citations and definitions, sample forms with instructions, and other instructions, as applicable. Further, the Compliance Policies and Procedures provide standards by which the business operations measure for adherence to compliance requirements. Because of the complex and technical nature of many of the laws and regulations, staff members are encouraged to refer to the actual law or regulation for specific requirements. In addition, consult with outside legal counsel with regard to the applicability of Compliance Policies or operating procedures to particular circumstances. B. Risk Assessment – Perform a comprehensive, written compliance Risk Assessment periodically for the purpose of identifying the laws and regulations applicable to the Bank’s operations and documenting the key controls. Update the Risk Assessment because of the introduction of any new products, business practices, technologies, or types of customer relationships, and for any new or changed regulations. At least annually, ICS will perform an overall review of the risk assessment to ensure that it reflects the current environment. C. Advertising and Web Site Compliance – Prior to printing, brochures, lobby notices, signs, other promotional materials, and changes to the Riordan’s Web site, items will be submitted to the Directors and Officers for review and approval. D. Product Development – The Compliance Program requires a compliance review performed when new or modified products are developed. The business area developing a new or modified product is responsible for contacting the Directors and Officers early in the process to discuss the product’s parameters and to allot adequate time in the project plan for proper compliance reviews of documents and disclosures, system testing, and staff training prior to product rollout. E. Monitoring – Compliance monitoring includes adherence to regulatory requirements, (such as disclosures, calculations, and record retention requirements) through ongoing reviews under the auspices of the Directors and Officers. The Compliance Program includes a process of supervising the ongoing functioning of the compliance systems to assure real time execution of the various compliance requirements. Each business area is responsible for monitoring to ensure compliance with regulatory requirements and to identify and promptly resolve any deficiencies noted. F. Legal Issues – Any dispute, controversy or claim arising out of or relating to legal contracts, including the formation, interpretation, breach or termination thereof, including whether the claims asserted are arbitral, will be referred to and finally determined by arbitration in accordance with the AAA and AAA International Arbitration Rules. References Jennings, M. M. (2006). Business: Its legal, ethical, and global environment. In 7th ed., Mason, OH: Thomson. University of Phoenix. (2008). Week Six Discussion: Learning Team B. Retrieved February 21, 2008, from University of Phoenix, Week Six, LAW531 – Learning Team B Course Web site. University of Phoenix. (2008). Week Six Simulation: Virtual Organization: Riordan Manufacturing. Retrieved February 21, 2009, from University of Phoenix, Week Six, LAW531 – Topic 1: Business Forms and Governance Course Web site.