CLOs know there’s truth to the old saw, “Never let a crisis go to waste!” That’s especially the case when it comes to board education. And—politics aside—the current CIA whistleblower controversy in Washington, D.C. offers just that—an opportunity to remind the board of its important oversight obligations with respect to the company’s whistleblower process.
In many respects, the whistleblower can be the bete noir of a corporation (if not also for its CLO). Whistleblower complaints can conjure up costly concerns like embarrassing disclosure, reputational damage, internal and external investigations and endless litigation. Yet the role of the whistleblower as an essential component of a comprehensive corporate compliance program is secure, no matter the type of corporation nor its industry sector. That’s something the board needs to keep in mind, and the recent headlines provide an excellent opening for the CLO to provide that reminder.
