HII Implements Innovative Solutions for its Compliance Program

Company

HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating an advantage for their customers to protect peace and freedom around the world.

As the nation’s largest military shipbuilder, and with a more than 138-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML, and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong.

The Challenges

The impacts of a compliance or ethics failure on a corporation can be swift, extensive, and unpredictable. The ever-increasing maze and complexity of corporate compliance regulations, coupled with the effects of the onset and duration of a global pandemic on business operations, will stress the immune system of any corporate compliance program. The system must be simple, and effective, and foster a culture of integrity and accountability, resonating with each employee regardless of geographic location.

The Solution – A Compliance Program as an Immune System

HII worked with Ivis Technologies to intentionally develop and build an immune system with its Compliance Program and Compliance Assessment Management System (CAMS). With CAMS, HII implemented a digitally managed Compliance Program and workflow designed for and owned by the business. This innovative system allows HII to quickly adapt to new regulatory changes and compliance risks, while continuously monitoring and evaluating existing risks. Moreover, CAMS streamlines the delegation of risk areas to business leaders, pushing effective risk mitigation and accountability throughout the organization.

CAMS Explained – A Systematic, Repeatable View of Compliance

With a thorough grasp of the immune system that needed to be built, HII seized upon this understanding to develop a software-based tool aimed at establishing repeatable processes and facilitating the efficient deployment of leadership, compliance, and ethics program resources to the most needed areas. In 2015, HII partnered with Ivis, a software company based in Phoenix, AZ, to develop a simple, easy-to-use end-user software to complement HII’s focus on human behavior risk and the potential consequences of a compliance or ethics failure.

Unlike any other company we are aware of, HII uses the “fraud triangle” to view risks from the perspective of its employees. In CAMS, each business unit has developed and implemented its own detailed annual compliance plan that contains up to 43 “core elements” (i.e., specific areas of compliance focus such as antitrust, cybersecurity, and retaliation). Each core element is assessed a risk value for each of the fraud triangle components – rationalization, opportunity, and pressure. Accompanied by a single, electronic dashboard through which leaders have full visibility into the range of compliance risks and corresponding risk mitigation actions, with a few clicks of a mouse, an accountable leader can understand how compliance risks are being managed at his or her business unit and across the enterprise.

Cost Savings and Business Ownership Through Collaboration

Prior to 2015, much of HII executed compliance through spreadsheets, word documents, and email exchanges. Developing CAMS software resulted in a product that streamlined and digitized compliance in a way that made it easy and efficient for the business to “own” compliance and manage risk. Over the past several years, HII has recorded a monthly average of over 1000 unique user logins in CAMS. CAMS is embedded in the operations of the business.

The introduction of CAMS has saved tens of thousands of man-hours since its full implementation in 2016 and reduced compliance costs when HII added a new division and acquired several companies.

Other Benefits

Enhanced Understanding: Significantly increased the comprehension of compliance as a fundamental function for business sustainability.

Streamlined Processes: Successfully reduced paper flow, cutting down on administrative burdens and freeing up valuable time and resources.

Real-time Insights: Through dashboards and reporting capabilities, leadership can immediately access summary information on all core compliance areas, enabling quicker decision-making.

Standardized Communication: Adopting consistent compliance language across the enterprise.

Improved Risk Visibility: Heightened visibility of significant compliance risks across the company and within specific business units.

Actionable Solutions: Meaningful, risk-based action items that address the root causes of non-compliance, empowering employees to make informed decisions.

Enhanced Collaboration: The CAMS platform facilitates collaboration among diverse geographically dispersed teams, enabling HII to tackle common compliance challenges.

Continuous Improvement: By establishing a repeatable and understandable process, HII promotes a culture of continuous improvement, ensuring compliance efforts evolve and adapt over time.

Rapid Integration: Newly acquired businesses can swiftly understand and rectify any potential compliance gaps, ensuring seamless integration into the corporate framework.

Creating Resiliency and Using CAMS to Manage Compliance Risks

In today's rapidly evolving business landscape, compliance is the cornerstone of sustainable success. With that in mind, HII embarked on a journey to revolutionize its approach to compliance, recognizing its pivotal role as an immune system to safeguard its employees, protect its reputation, support its stakeholders, and drive long-term value. After almost nine years of effective compliance concepts (such as the fraud triangle view of risks), HII is ready for future challenges.

For More Information Contact:

HII
Chuck Neff
Assistant General Counsel and Deputy Chief Compliance Officer
Charles.neff@hii-co.com

Ivis Technologies, Inc
Todd Thompson
Chief Innovation Officer
todd@ivis.com