Category Archives: Risk Management

Beware the Tariff DDP Trap: Managing Hidden Import Liabilities Before They Bite

by Jonny Frank and Jerry McAdams

Left to right: Jonny Frank and Jerry McAdams (photos courtesy of StoneTurn Group, LLP)

Looking to mitigate tariffs, companies are purchasing foreign products through Duty Paid (“DDP”) transactions marketed by foreign suppliers as turnkey solutions. DDPs promise efficiency but often deliver exposure. Under U.S. law, the importer—not the supplier—remains legally responsible for accurate customs declarations, tariff payments, and regulatory compliance. When suppliers cut corners or game the system, the importer inherits the fallout, including potential Customs Border Protection (“CBP”) penalties, DOJ criminal prosecution and False Claim Act (“FCA”) exposure.

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Future-Proofing Private Equity and Venture Capital: Leveraging AI for Strategic Advantage and Higher Returns

by Sabrina Hannam, Ibe Imo, Shana Sharan, and Ash Buonasera

Left to right: Sabrina Hannam, Ibe Imo, Shana Sharan and Ash Buonasera (photos courtesy of Boardswell)

In the high-stakes world of private equity, venture capital, and technology, a silent revolution is underway, transforming the very essence of how firms operate and compete. It’s a story not of human titans clashing in boardrooms, but of a new collaborator—Artificial Intelligence (AI)—that is rewriting the rules of engagement for human capital management. Once a tool for streamlining simple tasks, AI has evolved into a “digital colleague,” capable of autonomous decision-making and strategic support that extends far beyond the traditional confines of talent acquisition. This shift is challenging long-held practices and heralding an era where success is no longer solely defined by human intuition but by a symbiotic relationship between bold leadership and intelligent machines. Continue reading →

DOJ Defines “Illegal DEI,” Warns Recipients of Federal Funds to Take Notice

by Adam S. Hickey, Marcia E. Goodman, Ruth Zadikany, and Hiral D. Mehta

Left to right: Adam S. Hickey, Marcia E. Goodman, Ruth Zadikany, and Hiral D. Mehta (photos courtesy of Mayer Brown)

On July 29, 2025, U.S. Attorney General Pam Bondi issued Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination (the “Guidance”). Following the creation of the Civil Rights Fraud Initiative by the Department of Justice (“DOJ”), and joint guidance issued by DOJ and the U.S. Equal Employment Opportunity Commission (“EEOC”) on “unlawful DEI-related discrimination“, the Guidance is the most tangible guidance released to date on what the administration views as “illegal DEI” and a likely roadmap for DOJ’s False Claims Act (“FCA”) investigations under the Civil Rights Fraud Initiative.

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DOJ Announces First FCPA Enforcement Activity After Months-Long Pause

by Kimberly A. Parker, Jay Holtmeier, Erin G.H. Sloane, and Christopher Cestaro

Left to Right: Kimberly A. Parker, Jay Holtmeier, Erin G.H. Sloane, and Christopher Cestaro (photos courtesy of WilmerHale)

Over the past week, the U.S. Department of Justice (“DOJ”) unsealed its first Foreign Corrupt Practices Act (“FCPA”) enforcement action and issued its first declination since the pause in FCPA enforcement mandated by President Donald Trump’s February 10, 2025 Executive Order (“February Executive Order”)[1] and the subsequent issuance of updated FCPA enforcement guidelines, the Guidelines for Investigations and Enforcement of the Foreign Corrupt Practices Act (FCPA) (“June Guidelines”).[2]

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White House’s AI Action Plan: Winning the Race in a Patchwork Regulatory Era

By Joshua Ashley Klayman, Ieuan Jolly, Jeffrey Cohen, and Caitlin Potratz Metcalf

Left to right: Joshua Ashley Klayman, Ieuan Jolly, Jeffrey Cohen, and Caitlin Potratz Metcalf (photos courtesy of Linklaters)

On July 23, 2025, the White House published Winning the AI Race: America’s AI Action Plan (the AI Action Plan), a comprehensive effort aimed to solidify United States leadership in artificial intelligence. The AI Action Plan acknowledges the U.S.’ uniquely complex—and, at times, conflicting—regulatory landscape, including the patchwork of state-level laws that impact innovation, compliance, and policy predictability. The Action Plan calls for national leadership and seeks a unified, pro-innovation regulatory approach, with an understanding that states will continue to develop their own laws. Businesses should prepare for both the opportunities and the compliance challenges that will arise as the Action Plan is implemented.

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What Could Go Wrong? Crisis Communications Preparedness for Board Directors

by Cari Robinson and Amelia Fogg

Left to right: Cari Robinson and Amelia Fogg (photos courtesy of the authors)

It is essential for board directors to understand and test whether their companies are prepared to handle unexpected and critical situations. In most cases, it falls to management to run point during a crisis, but boards are responsible for overseeing the company’s response, monitoring the situation, providing guidance and support, and making key decisions throughout the crisis. In addition to ensuring response plans are in place, directors must also understand how vital effective communication is for navigating and recovering from a crisis, as a company’s response to a crisis (or lack thereof) often defines reputational impact more than the issue itself. Clear, credible, and timely communication helps control the narrative, demonstrates accountability, and builds trust. However, saying the wrong thing in a crisis can erode trust, inflame the situation and subject the board and the company to unnecessary risk and liability.

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CPPA Adopts Long Awaited Rulemaking Package

by Avi Gesser, Johanna N. Skrzypczyk, HJ Brehmer, and Melyssa Eigen

Left to right: Avi Gesser, Johanna N. Skrzypczyk, HJ Brehmer, and Melyssa Eigen (photos courtesy of Debevoise & Plimpton LLP)

The California Privacy Protection Agency (the “CPPA”) Board met on July 24, 2025, to decide whether to adopt its comprehensive rulemaking package covering cybersecurity audits, automated decision-making technology, and other adjustments to its existing regulations (collectively, the “Draft Regulations”). We have written about these topics in December 2024, February 2025, and May 2025 respectively. Ultimately, after its initial 45-day comment period and additional revisions, the Board decided to finalize the text of the rulemaking package (the “Regulations”).

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Second Circuit Reinstates FIFA Bribery Convictions, Reviving Honest Services Fraud Prosecutions for Foreign Commercial Bribery

by David A. Last, Rahul Mukhi, Victor L. Hou, Lisa Vicens, Matthew M. Yelovich, and Sarah Pyun

From left to right: David A. Last, Rahul Mukhi, Victor L. Hou, Lisa Vicens, Matthew M. Yelovich, and Sarah Pyun (photos courtesy of Cleary Gottlieb Steen & Hamilton LLP)

In a significant decision with broad implications for companies and individuals operating internationally, the U.S. Court of Appeals for the Second Circuit has reversed the acquittal of a former media executive and a sports marketing company in the long-running FIFA bribery investigation.[1] The ruling reinstates jury convictions for honest services wire fraud and money laundering conspiracy, holding that the federal honest services fraud statute, 18 U.S.C. § 1346, can apply to foreign commercial bribery schemes.[2]

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Board Priorities in a Geopolitical Landscape: Risk, Compliance, and Supply Chain Resilience

This post comes from a webinar with Bets Lillo, Edward Knight, Will A. Clarke, and Jana del-Cerro delivered on May 22, 2025. They offered a clear-eyed view of how boards and executive management must adapt to effectively lead amid a world where national security, economic policy, and supply chain resilience are deeply intertwined. Five key takeaways from their discussion are outlined below, alongside practical implications for boardroom oversight and planning.

From left to right: Bets Lillo, Edward Knight, Will A. Clarke, and Jana del-Cerro (photos courtesy of authors).

As the impact of global interdependencies becomes increasingly complex, boards and executive management are guiding and governing their companies in an unpredictable environment. That was the central theme of the recent May 2025 webinar, Geopolitical Issues Impacting Global Supply Chains and National Security, hosted by the Nasdaq Center for Board Excellence and the Program on Corporate Compliance and Enforcement at NYU School of Law.

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Retheorizing Compliance: Moving from Defense to Offense in Uncertain Times

by Todd Haugh and Suneal Bedi

Left to right: Todd Haugh and Suneal Bedi (photos courtesy of the authors)

The Trump administration—Trump 2.0, as some are calling it—is moving at unprecedented speeds to remake how government regulates business. In the administration’s first 100 days alone budgets and personnel have been downsized at the IRS, EPA, CFPB, and FTC, among other agencies. Enforcement of the FCPA has been paused, more than a dozen inspector generals have been removed from their posts, and the newly confirmed Attorney General and FBI Director are expected to work in tandem to drastically refocus civil and criminal enforcement.

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