🌹 This Week in GRC: Change in the Air
MBK Search
We connect the best risk, audit, and compliance talent with the world’s leading firms.
Welcome to Issue 66 of This Week in GRC, MBK Search's weekly digest of the news and views in the world of governance, risk, and compliance.
🔔 This Week's Opening Bell
So much of risk management involves mitigating change. Months, maybe even years, are spent anticipating change and how best to navigate an endless list of scenarios. This past week would have stretched even the most circumspect of GRC professional. In the U.S. the Supreme Court's decision to overrule the Chevron doctrine will have profound effects on regulatory power, while elections in France and the United Kingdom look set to usher in change on the other side of the Atlantic. They are three reasons why the work GRC professionals do will remain in demand - and in some cases, will grow over the next year.
📰 This Week's Issue
🏦 What does the end of the Chevron doctrine mean for GRC?
🇬🇧 Breaking down the Bank of England's Financial Stability Report
🤝 How to develop a board education programme
✍️ Insight & Analysis from MBK Search
The end of the Chevron doctrine
The Supreme Court’s decision last week to overrule the long-standing Chevron doctrine will have massive implications for regulatory interpretation and enforcement. Here’s what it could mean for those working in governance, risk, and compliance.
The BOE's Financial Stability Report
Across the pond, The Bank of England released its biannual Financial Stability Report, and there was plenty for GRC professionals to sink their teeth into.
MBK Search looks at the main points.
Is it time for a CCO liability framework?
Who would be a Chief Compliance Officer? It’s not enough to keep their firms straight and narrow—they’ve got to manage their liability risks, too. But does it need to stay this way?
Talk of a liability framework for compliance leaders is a well-trodden path, but what is standing in the way of making it a reality? And is it time for the SEC to walk its talk?
📰 This Week's GRC Headlines
Supreme Court Expands Plaintiffs' Ability to Sue Federal Regulators
The Supreme Court, in a 6-3 decision, has significantly expanded the ability of plaintiffs to challenge federal agency regulations. The court ruled that the statute of limitations begins when the plaintiff is injured, even if it occurs long after the agency's action.
Justice Amy Coney Barrett, writing for the majority, stated that a plaintiff must show injury caused by the agency's actions to have a complete cause of action under the Administrative Procedure Act (APA). This means Corner Post, a North Dakota truck stop, can challenge a 2011 Federal Reserve Board regulation despite opening in 2018.
The dissent, authored by Justice Ketanji Brown Jackson, warned of potentially "staggering" implications, particularly in light of the court's recent decision, which eliminated deference to agency interpretations. Jackson cautioned that the ruling, combined with the Loper-Bright decision, could create a "tsunami of lawsuits" and encouraged Congress to amend the APA to clarify the statute of limitations.
FATF Adds Monaco and Venezuela to "Gray List" for Anti-Money-Laundering Deficiencies
The Financial Action Task Force (FATF) added Monaco and Venezuela to its "gray list" of countries requiring increased monitoring due to inadequate anti-money-laundering and counterterrorist financing systems, while removing Jamaica and Turkey for making significant progress.
The Paris-based intergovernmental body announced its decision during a meeting in Singapore, stating that it would work with Monaco and Venezuela to address the identified deficiencies in their anti-money-laundering regimes.
Despite Monaco's popularity among wealthy individuals for its favorable tax policies, the FATF noted that the principality needs to improve its understanding of risks related to money laundering and income-tax fraud committed abroad, as well as enforce penalties for violations of anti-money-laundering and beneficial ownership requirements.
Venezuela must focus on investigating and prosecuting money laundering and terrorist financing, while ensuring that its measures to prevent the misuse of nonprofit organizations for terrorism financing do not disrupt legitimate humanitarian efforts.
The FATF's plenary also marked the end of T. Raja Kumar's presidency, with Elisa de Anda Madrazo of Mexico set to take over on July 1.
Biden Admin Proposes Standards to Combat Extreme Heat in the Workplace
The Biden administration has released long-awaited proposed rules establishing the first federal safety standard to protect workers from extreme heat, applying to indoor and outdoor workplaces.
Under the proposed Labor Department rules, employers must provide water when the heat index exceeds 80°F and access to shade or air-conditioned break rooms. If the heat index surpasses 90°F, 15-minute paid rest breaks every two hours would be mandatory.
According to government estimates, heat exposure killed an average of 33 workers annually between 1992 and 2021, although this may be an undercount. The proposed rules aim to substantially reduce heat injuries, illnesses, and deaths for over 36 million workers across various industries.
The regulation is expected to cost businesses an average of $3,085 per establishment annually, with commercial kitchens, construction, and manufacturing being among the most affected. The proposed rule will undergo a public comment period before OSHA publishes a final rule, and potential legal challenges are anticipated if implemented.
🔥 This Week's GRC Hot Takes
Hot takes and analysis from those on the shop floor
What does it take to be a promoted partner at an accounting firm? Edward Mendlowitz offers his thoughts in Accounting Today.
"The SEC is raising the bar for effective cybersecurity and incident response, under the guise of internal accounting controls. I don’t know whether that’s good or bad, but I do know you can’t unring that bell," writes Matt Kelly.
RMIA's Simon Levy argues why education is the greatest tool in a risk manager's armoury.
How do you deal with the weight of conflict that comes with being an internal auditor? An interesting question on soft skills from The Audit Explainer.
📺 This Week's GRC Podcast
GRC podcasts to watch and treat your ears to
Angela Grant of Palomar Holdings discusses how to develop a successful board education program.
🧑💼This Week's Hottest GRC Jobs
Make your next career step with MBK Search
Our client, an international apparel brand, is seeking a Senior Accountant to join their growing team in Germany.
Medicaid Regulatory Policy Attorney - New York, NY
Our client is seeking a highly qualified associate with two to four years of health care regulatory experience to join their growing team. Among other issues, this role will include a strong focus on regulatory analysis and policy advising related to the Medicaid program.
Healthcare Litigation Staff Attorney - California
Our client is seeking a staff attorney with a minimum of four years of litigation experience to join their nationally recognized health care practice.
At MBK Search, we help firms find world-class talent to build champion teams across regulated markets. Let's start building — visit our website to find out how. www.mbksearch.com