Questionnaire Compliance Quick Check The Compliance Quick Check (“CQC“) is a questionnaire enabling the assessment of compliance risks and preventative measures. The CQC helps identify quickly and reliably any need for action in the area of Compliance. The CQC is comparable with a due diligence questionnaire. The evaluation of the CQC allows for a calculation of the overall risk in the area of Compliance as well as for concrete recommendations for further action to optimize the existing structures and, hence, to minimize the overall risk. The CQC can be used as an initial step in the preparation of a comprehensive Compliance audit and a full improvement of the Compliance situation. The findings gathered from the individual sections allow for an evaluation of the overall risk in the area of Compliance. In addition, they can help identify certain individual risks and the concrete need for action as well as improvement potential. If you have any further questions, please feel free to contact: DDr. Alexander Petsche E-mail: alexander.petsche@bakermckenzie.com Mag. Georg Krakow E-mail: georg.krakow@bakermckenzie.com Dr. Caroline Kindl E-mail: caroline.kindl@bakermckenzie.com RISK ANALYSIS: Do compliance risks exist? Yes 1. Admission to trading on a stock market 1.1 Is the company listed on a stock exchange? 1.2 Is the company also listed on a U.S. stock exchange? 2. Business activities 2.1 Do the company’s business activities include particularly risk-entailing lines of business, such as plant construction, defense industry, telecommunications, building industry, transportation technologies or pharmaceutical industry? 2.2 Do the business activities involve unique risks, such as environmental or product liability risks? 2.3 Does comprehensive regulation exist for the business activities or any part of the business activities, such as in the areas of telecommunications or energy supply? 2.4 Within the last five (5) years, has a cartel been disclosed in the line of business in which the company does business? 3. Geographic extent of the business activities 3.1 Does the company carry out business activities outside the EU? 3.2 Does the company carry out business activities in more than 20 and less than 50 countries? 3.3 Does the company carry out business activities in more than 50 countries? 3.4 Does the company carry out business activities in one or more countries showing a critical compliance track record (TI index, copy enclosed below X)? 4. Customers / Sales 4.1 Does the company generate more than 50% of its sales from less than 10% of its customers? 4.2 Does the company’s business comprise high-volume projects (exceeding volumes of EUR 100 million)? 4.3 Does the company carry out “turn key” projects? 4.4 Do the company’s customers include public authorities (including privatized, formerly state-owned enterprises)? 4.5 Does the company use consultants in support of their sales? 4.6 Does the company use commercial agents? 4.7 Does the company grant discounts (except for quantity discounts or cash discounts) or kickbacks? 4.8 Does the company receive discounts (except for quantity discounts or cash discounts) or kickbacks? No Notes RISK ANALYSIS Do compliance risks exist? Yes 5. Purchasing 5.1 Does the company maintain a central purchasing department? 5.2 Does the central purchasing department cover more than 90% of the acquisition value? 5.3 Do individual relationships to suppliers exist for more than 5 consecutive years? 5.4 Do individual relationships to suppliers involve purchasing volumes in excess of EUR 100 million per annum? 6. Payments 6.1 Does the company make cash payments to suppliers/ consultants/ commercial agents? 6.2 Does the company receive cash payments? 6.3 Does the company hold available substantial cash reserves (exceeding EUR 50,000)? 7. Compliance behavior in the past 7.1 In the past five years, have there been any compliance violations / investigations / court sentences within the company? 7.2 In the past five years, have there been any investigations by public prosecution targeted at employees of the company in conjunction with their job activities? 7.3 Are the employees involved in the compliance violations still employed with the company? 8. Staff 8.1 Are there employees working with the company whose income depends on successful purchasing / sales activities at more than 10%? 8.2 Within the past 10 years, have retired employees been rehired as consultants or free-lancers? No Notes COMPLIANCE ANALYSIS: What are the compliance arrangements in place? Yes 1. Compliance organization 1.1 Does the company maintain an independent compliance organization with central accountabilities? 1.2 Do compliance organizations exist in all of the company’s lines of business / regions? 1.3 Does the compliance organization report directly to the management / board of directors? 1.4 Is there a clear separation between the compliance organization and the auditing division? 1.5 Does the company regularly carry out preventative compliance audits? 1.6 Does the company operate a whistle blowing hotline? 1.7 Does an “amnesty rule” for employees exist? 2. Compliance documentation 2.1 Does the company have a code of conduct? 2.2 Compliance guidelines 2.2.1 Does the company provide for compliance guidelines for specific transactions / business activities? 2.2.2 Does the company provide for a guideline dealing with the presentation / acceptance of gifts / entertainment etc. towards and from third parties? 2.2.3 Does the company provide for a guideline dealing with the use of sales-related consultants and agents? 2.2.4 Does the company provide for a purchasing guideline? 2.2.5 Does the company provide for a guideline on whether and when granting discounts is admissible? 2.2.6 Does the company provide for a data protection guideline? 2.2.7 Does the company provide for a travel expenses guideline? 2.2.4 Does the company provide for a guideline dealing with the keeping of (electronic) documents? 2.2.9 Does the company provide for a signature guideline including control feature (e.g. “four-eyes principle”)? 2.3 Are the company’s code of conduct and compliance guidelines routinely presented to newly-hired employees? 2.4 Are employees obliged to undertake compliance with the code of conduct and the compliance guidelines? 2.5 Is there a control mechanism to check whether employees in fact undertook compliance with the code of conduct and the compliance guidelines? 2.6 Does the company impose sanctions on employees who failed to undertake compliance with the code of conduct and the compliance guidelines? No Notes COMPLIANCE ANALYSIS What are the compliance arrangements in place? Yes 3. Standardization of contractual relations 3.1 Do model contracts exist for use with suppliers / consultants / agents? 3.2 Do the model contracts oblige the contract parties to comply with national and international compliance standards (e.g. US Foreign Corrupt Practices Act)? 3.3 Do the model contracts oblige the contract partners to comply with the company’s code of conduct? 3.4 Does either the compliance organization or the legal department monitor the use of the model contracts? 4. Business Partner Screening 4.1 Does the company create due diligence questionnaires in relation to contractual partners (consultants/agents/ suppliers/customers) before entering into business relationships with them? 4.2 Do the company’s employees fill out these questionnaires? 4.3 Is this information verified by obtaining an external credit report? 4.4 Does the company oblige its business partners to comply with compliance standards? 4.5 Does the company control on a regular basis whether the company’s business partners comply with the compliance guidelines? 5. Compliance training 5.1 Does the company regularly hold general-interest compliance training courses? 5.2 Does the company regularly hold customized compliance training courses, e.g. for purchasing and sales? 5.3 Does the company offer compliance training courses using e-learning? 5.4 Is attending the compliance training courses compulsory? 5.5 Is attending the compliance training courses enforced vis-à-vis the employees? 5.6 Do employees have free access to the compliance training material (e.g. on the Internet?) 6. Employees 6.1 Do employees in critical areas (e.g. sales and purchasing) work in a “rotation system”? 6.2 Is there a mechanism in place to identify and specifically address employees in critical areas (e.g. sales and purchasing) once they fail to take their vacation over a longer period of time? 7. Crisis management 7.1 In the event of a suspected compliance violation, does the company provide for specific procedures with accountabilities and measures? 7.2 Are compliance violations sanctioned by measures of labor law? No Notes www.bakermckenzie.com www.dhplaw.at Baker & McKenzie Diwok Hermann Petsche Rechtsanwälte GmbH Schottenring 25 1010 Wien / Österreich Tel.: +43 (0) 1 24 250 Baker & McKenzie Since the founding of our firm in 1949 in Chicago by Russell Baker and John McKenzie, we have focused on providing value giving our clients clear signals by means of equally distinct and demanding solutions across all continents. With concepts that are equally comprehensible and unusual, with fast and efficient work, with in-depth, global know-how, with a great deal of transparency and fairness. Contact DDr. Alexander Petsche Tel.: +43 (0) 1 24 250 571 E-mail: alexander.petsche@bakermckenzie.com Mag. Georg Krakow Tel.: +43 (0) 1 24 250 563 E-mail: georg.krakow@bakermckenzie.com Dr. Caroline Kindl Tel.: +43 (0) 1 24 250 526 E-mail: caroline.kindl@bakermckenzie.com You have the opportunity to fill out this form online and send it back to us via this LINK. Name Company E-mail account Diwok Hermann Petsche Rechtsanwälte GmbH is a Member of Baker & McKenzie International, a Verein organized under the laws of Switzerland with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. © 2012 Baker & McKenzie. All rights reserved.