What Does It Mean to be a Corporate Monitor? (Revisited)
In an article for the New York University’s Compliance and Enforcement blog, Exiger Managing Director Daniel R. Alonso builds on an earlier article titled, “What Does It Mean to be a Monitor?” by discussing the important role of proactive monitors.
He describes a proactive monitor as one created as a prophylactic measure, in the absence of an action or settlement, and explains that they are an important and growing role in the world of monitorships.
“They are generally engaged to prevent and detect the occurrence of fraud, waste, and other forms of unethical behavior in the first instance,” he says.
Explaining that proactive monitors have been used since the early 1990’s, Mr. Alonso touches on recent examples—in contexts as diverse as telecommunications mergers and public works projects—outlines their main benefits, and makes a strong case for why they will become increasingly popular in coming years.
“In light of their versatility and usefulness, we can expect that proactive monitors will gain increasing attention in the years to come. Therefore, it is important to understand the distinctive benefits of this monitorship model so they can be fully realized and used as a key tool in the integrity toolbox.”