The Morning Risk Report: Startups Need to Keep Sight of ComplianceFebruary 10, 2016 – In The News
Robert W. Ray was featured in The Wall Street Journal article, “The Morning Risk Report: Startups Need to Keep Sight of Compliance.” Full text can be found in the February 10, 2016, issue, but a synopsis is below.
As startup and expanding companies push to ensure a stable position within their given industries, it is imperative that leadership is aware of the impact that compliance functions can play in future success.
Recently, the chief executive health-insurance brokerage Zenefits and the tech firm Barracuda Networks Inc. came under fire after it was found that the companies were not up to speed with their compliance systems.
“Hiring a capable chief compliance officer who has buy in from senior management is key,” said Fox Rothschild’s Robert Ray. “It strikes me that Zenefits has run up against a double whammy; it’s now having to confront the risks associated, as a quickly growing startup, in doing business in two highly regulated industries: the insurance industry, and the health care field,” he added.