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Assessing Risk in a Rapidly Evolving Digital and Physical World: with Guest Brian Mich of Control Risks [PODCAST]

On this episode of The Bracewell Sidebar, hosts Matthew Nielsen and Seth DuCharme are joined by Brian Mich from Control Risk, a specialist risk consulting firm. Brian leads the regulatory risk and investigations practice for the Americas region, which includes North America, as well as Central and South America.

Tell us a little bit about yourself and what you do.

I'm a partner at Control Risk. I lead our regulatory risk and investigations practice for the Americas region, which includes both North America, as well as Central America and South America.

Control Risk, for those who don't know, is a 47-year-old specialist risk consulting firm. We have an interesting history: We’re UK-based; we grew out of the insurance industry initially; and we started as — and are still — the premier kidnaping and ransom response firm in the world. We've grown into doing work in the crisis and security consulting world, where we do everything from complex cyber readiness and cyber response, all the way down to doing executive protection for our clients who are operating in difficult areas. My end of the business is more focused on integrity risk.

How do you see digital due diligence and data versus kind of boots on the ground?

Digital due diligence and using data helps certainly, whether it’s due diligence or investigations, or compliance monitoring and risk assessments. It certainly helps you to identify the areas of risk to some degree.

In our due diligence, we do a lot of work relying upon information that's relatively accessible online and through publicly available sources. A lot of the places our clients operate, though, don't always have the greatest amount of information or the most accurate information that's available online, either because they don’t have the same sophistication in terms of the robustness or in terms of public records. Some work on the ground is often necessary just to get some basic information about who owns a company, who the shareholders are and things like that.

What kind of concerns and risks are associated with doing business with people in certain areas of the country?

A lot of due diligence we do is focused on a variety of different regulatory risks that might be in place. The Foreign Corrupt Practices Act of 1977, the bribery focus that has been so much part of it, that could be a focus. It could be money laundering related to a variety of different risks that you're looking at. Part of the reason why you’re looking at those, depending upon the context of the relationship you're looking at, is when you, for example, enter into a joint venture or you are acquiring a company or you're engaging a party to act as your representative, as your agent, you assume that risk to a large degree of their conduct.

It's important to try to understand who you're dealing with so that you don't have that risk of then maybe behaving poorly, or violating the law on your behalf. Of course, you also want to be able to indicate you've done that due diligence, because when it does happen, part of your defense is that you're going to have to your potential corporate liability will be that we had a program in place, risk-based determining, based upon the risk of that party, which can be a lot of different factors.

Are you seeing more companies doing due diligence from an environmental, social and governance (ESG) standpoint?

Obviously, ESG is gaining greater regulatory attention. The FCC and other regulatory agencies are developing their approaches. The challenge with ESG to date has been a little bit of how do you quantify it, particularly the “G” part. Governance has always been something that we do, but the environmental and the social aspects of it is very difficult to figure out.

The opinions expressed in this podcast are those of the speakers and do not necessarily reflect the viewpoint of their institutions or clients.

© 2023 Bracewell LLPNational Law Review, Volume XII, Number 336
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About this Author

Matthew G. Nielsen energy and finance lawyer Bracewell
Partner

Matthew Nielsen has over 17 years of experience defending corporations, corporate executives and employees, and securities industry professionals in civil and criminal investigations, as well as securities investigations and litigation. He represents US and international clients on matters related to federal and state securities laws, US export controls and sanctions laws and regulations, Foreign Corrupt Practices Act, whistleblower complaints, accounting fraud and healthcare fraud.

He regularly practices before state and federal regulatory and law enforcement...

214 758 1039
Seth DuCharme Insurance Lawyer Bracewell LLP
Partner

Seth DuCharme draws on his 14 years of experience as a senior-level law enforcement officer to advise companies and individuals on cases involving cybersecurity and breach response, Foreign Corrupt Practices Act (FCPA) diligence and litigation, export controls, sanctions compliance and anti-money laundering.

Seth served in the United States Attorney’s Office for the Eastern District of New York from 2008 through 2021. He held various positions at the Eastern District, including Chief of the Criminal Division, Chief of the National Security & Cybercrime Section, and Acting United...

212-508-6165
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