Export Compliance Management Seminar 29 May 2012: Key Issues & Complexity in Global Trade Management and How It Affects Your Business
- 1. Momentive case: Key Issues & Complexity in Global Trade Management and How It Affects Your Business Presented by: Delphine Neveux Global Trade Compliance – Regional Senior Manager Europe Rotterdam, May 29th, 2012 Company Confidential
- 2. Who are we? • Word’s largest producer of specialty chemicals: – Epoxy, binder, adhesive, coating & ink resins – Silicon's and quartz for industrial applications. • 20,000 customers with broad end use markets i.e. – Automotive – Construction – Energy/ Industrial/Marine – Consumer/ Durable goods • 104 production facilities and 10,000 employees around the world – 51 facilities in Americas – 32 facilities in Europe – 21 facilities in Asia Pacific • Sales of $7.4 billion with 80% of leadership market positions. • Owned by the US Private Investment Firm “Apollo Management L.P” Momentive - Confidential 5
- 3. Main challenge: how to prevent anyone ending there? Company Confidential 6
- 4. Main challenge: How to build & sustain what Governments expect from us? • The common denominator for successful trade compliance is: – a system of effective internal controls • Government expectations for internal control systems have 5 common program elements: 1. Management commitment and adequate resources 2. Policies and procedures 3. Risk assessment and program oversight 4. Training, communication and auditing 5. Corrective action COSO Company Confidential Framework
- 5. II. Business impact of our problem solving strategy?
- 6. 1. Management Commitment and Adequate Resources – Governance of senior management in compliance effort » Policy endorsed by high ranking officials » Participation in periodic compliance review board meetings » Funding of needed compliance activities – Organization fully and knowledgeably staffed » Clear allocation of compliance responsibility and authority » Cross functional designation of subject matter experts » Creation of Global Trade Compliance (GTC) Group incl. • New position for Vice President – GTC and Senior Counsel • Appointment of 4 x Export Compliance Officers (ECOs) • Appointment of Product Stewards across Business Divisions • Embedded involvement of internal auditors and legal counsels EMPC = Export Management Compliance Program Company Confidential 9
- 7. 2. Policies, Procedures and Tooling Policies and procedures – Global export controls policy made easily accessible on intranet – Documented procedures of each involved functions – Determination matrix for controlled items & Technology control plan – Know your customer – hands out Momentive tools and techniques Restricted Party Screening software (interface with SAP) – Automated screening parties and orders’ checks (incl embargoes) – Tool available on and off-line – Automated updates of party-lists, controlled items, regulations per country etc SAP: – Automated checks and blocks – New Material Development/ Material Introduction Maintenance (NPD/MIM) – Validation of Foreign Trade Data – restricted only to authorized users Company Confidential 10
- 8. 3. Risks assessment and program oversight • Risk Assessment – Trade related risks are assessed, documented, weighed periodically – Systemic regulatory checks are embedded in new material introduction – On going screening of all (existing and new) materials and parties • Program Oversight/ Auditing – Regular, periodic auditing of compliance performance • On effectiveness of EMCP legal controls, processes and procedures • On efficiencies of automated tools (Screening, SAP blocks etc) • Due-diligence by integration of new businesses (ex: M&A) Company Confidential
- 9. 4. Training and Communication – Targeted training programs (internal/external/Intranet enabled) • GTC/Legal: in depth training • Product Stewards: determination of strategic goods • Customer Service/Sales: “Know your customer guidance” / Red-flag/ “do’s and don'ts” • Site manager: Technology Control Plan/ legal controls required – Completion tracking and performance captured – Communication • Periodic compliance message- broadcasted by leadership team • Periodic reports of compliance review board meetings • Quality internal and external considerations
- 10. 5. Corrective actions Mechanism for surfacing issues – Documented process for escalation and resolution of detected non- conformities – Documented remediation plans – Verification of effectiveness of action taken – Voluntary disclosures Recordkeeping Conform to regulatory requirements and Technology Control Plan to: • Facilitate easy collection of all relevant documents • Monitor the handling of internal compliance issues and corrective actions Company Confidential
- 11. Questions?