The adventure continues, after Kobe Steel announced earlier this month that workers at several different facilities had fudged paperwork on product quality, dating back to at least 2007. Apparently, getting that type of paperwork accurate is important. To someone.
“U.S. Looking Into Kobe Steel Scandal,” The Wall Street Journal, October 18, 2017 B3. Department of Justice kicks off a request for information after company disclosures about practices in Japan. Affects product sold into manufacturers of train, planes, and cars.
More to follow. Expect Congress to weigh in shortly. Again, the problem occurred in more than one facility, over a period of years. Is that a failure of compliance, or culture, or both?
An example of the intersection of governance, compliance, and information.
Filed under Accuracy, Compliance, Controls, Corporation, Culture, Data quality, Definition, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Oversight, Reliance, Use, Value
“Kobe Steel Discloses More Reporting,” The Wall Street Journal, October 14, 2017 B3. Falsification of quality documents is much more prevalent than first reported at Kobe Steel. Twice the number of customers now involved. 500.
Once you find a rotten apple, one can make certain assumptions about the rest of that barrel. It’s a culture issue, at its core.
Filed under Accuracy, Board, Compliance, Compliance, Compliance Verification, Controls, Corporation, Culture, Culture, Data quality, Definition, Directors, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Oversight, Oversight, Policy, Protect assets, Protect information assets, Third parties
“Lawmaker Is Focus Of Ethics Report,” The Wall Street Journal, October 12, 2017 A3. A congressman is accused of misusing his public office and sharing non-public information about a company’s drug trials with other investors.
Here, the three threads (governance, information, and compliance) all come together. A member of the governance structure allegedly violates the law and discloses non-public information that was likely material to some but not all investors. How will the Yates memo apply here?
Can you hang high-ranking executives higher than the run-of-the-mill cheater?
To manage junk, get rid of it. To manage the junk you can’t (or won’t) destroy, you need to know where it is. Or bad things happen
“A Band Of Junk Clutters Space,” The Wall Street Journal, September 13, 2017 A1. The Air Force tracks about 23,000 objects in orbit, but doesn’t “own” all of them, nor does it have the right to destroy them all.
Sounds to me a lot like information governance — there’s a lot of stuff to manage, even though a lot of it is junk. Who owns “it” and who’s in charge? Who is the ultimate decision maker about what can be destroyed? In the absence of a governance structure, who does what?
In the case of another serial offender, “Mylan Settles U.S. Claims on EpiPen,” The Wall Street Journal, August 18, 2017 B5. Mylan pays $465 million for misclassifying the EpiPen as a generic, which affects how Medicaid reimbursements are made.
Funny how Mylan is so careful to not make mistakes that result in them getting less money. The current shareholders keep getting these large bills.
Filed under Accuracy, Business Case, Controls, Corporation, Culture, Definition, Duty, Governance, Information, Internal controls, Oversight, Protect assets, Risk
Companies begin to move towards the use of quantum mechanics into practical application.
“A Quantum Leap for Computers Looms,” The Wall Street Journal, May 8, 2017 B4. Huge processing speed increases possible when processing and analyzing huge volumes of data.
You think you have ediscovery problems now, wait until the qubits disappear or mutate (sublimate?) to a different state.
Sunlight is a great disinfectant.
“Solar Firms Probed Over Hiding Client Cancellations,” The Wall Street Journal, May 4, 2017 A1. Did SunRun and SolarCity “fail to disclose” the number of customers who canceled after signing up for a home solar-energy system? The SEC thinks that that is important information for potential investors to have.
So, both the SEC and the companies “manage,” or control, this information in one or more respects. How well does your company’s”management” of its information measure up to the government’s requirements? Is that a compliance problem or an information governance problem? Or both?
Filed under Accuracy, Communications, Compliance, Controls, Corporation, Data quality, Definition, Duty, Governance, Government, Information, Investor relations, Oversight, Value