2017 Ethics & Compliance Hotline & Incident Management ... · 2017 Ethics & Compliance Hotline &...

Copyright © 2017 NAVEX Global, Inc. All Rights Reserved. | Page 0

2017 Ethics & Compliance Hotline & Incident Management Benchmark

Report Webinar

Presented byCarrie Penman | Chief Compliance Officer &

Senior Vice President, Advisory ServicesEdwin O’Mara | Operations Manager, Advisory Services

Copyright © 2017 NAVEX Global, Inc. All Rights Reserved. | Page 1www.navexglobal.com

Carrie PenmanChief Compliance Officer & Senior Vice President, Advisory Services

Presented By

Edwin O’MaraOperations Manager, Advisory Services


• Introductions

• Our Benchmarking Methodology

• Business Imperatives of Benchmarking

• Key Findings

• Key Takeaways & Best Practice Recommendations

• Q&A

• Additional Resources

Agenda


Our Comprehensive Ecosystem


Benchmark Methodology


Hotline Benchmark Statistical Snapshot

• Our database starts with 12,500+ NAVEX Global clients

• Of those 5,132 received a report in 2016 through NAVEX Global’s Hotline and EthicsPoint Incident Management solutions

• 2,382 clients received 10 or more reports in 2016 (representing 38.5 million employees)

• These 2,300+ clients received approximately 1,000,000 reports in 2016

• Data reflects all reports documented in clients’ EthicsPoint Incident Management system regardless of reporting channel (web, hotline, open door, mobile, email, mail, etc. )

• Data covers 26 industries, and an additional 45 sub-industries

• We use medians (or midpoints) rather than averages to reduce the impact of outliers

− Normal ranges identify extreme data points as potential areas of concern

− Medians and ranges provide context for benchmarks


Key Findings


Key Finding #1

Report Volume per 100 Employees


Median Report Volume Increases to an All-Time High

Source: NAVEX Global's 2017 Ethics and Compliance Hotline Benchmark Report


What do you think is the biggest driver of report volume increases?


Impact of Using a Unified Incident Management System



What is your organization’s approach to documenting E&C reports?


Health Care Leads in Reporting Volume


Highest Rate 1) Health Care2) Not for Profit3) Real Estate4) Pharmaceuticals5) Retail6) Agriculture, Forestry, Fishing & Hunting7) Arts & Entertainment8) Energy & Utilities9) Commercial Transportation10) Consumer Manufacturing11) Finance & Insurance12) Security13) Business Support Services14) Food Services15) Construction16) Aerospace & Defense17) Automotive Transportation18) Government19) Professional, Scientific & Technical Services20) Education21) Media22) Mining23) Computer Services, Hardware & Software24) Industrial Manufacturing25) Wholesale Trade26) Electronics

Lowest Rate

Overall Median Rate: 1.4 reports per 100

employees


Key Finding #2

Report Allegation Categories


Categories of Reports Used



Categories of Reports Remain Relatively Consistent

Allegation Categories

2012 Median

2013 Median

2014 Median

2015 Median

2016 Median

Accounting, Auditing and Financial Reporting 3% 3% 2% 2% 2%

Business Integrity 17% 18% 17% 15% 14%

HR, Diversity and Workplace Respect 69% 73% 69% 71% 72%

Environment, Health and Safety 7% 7% 6% 5% 7%

Misuse, Misappropriation of Corporate Assets 6% 6% 6% 7% 5%



Industries with the Highest Median Reporting Rate by Allegation Category



Key Finding #3

Anonymous vs. Named Reporters


Anonymous Reporting Continues to Decrease



No Change In Follow-Ups to Anonymous Reports



Education Leads Anonymous Reporting by Industry


Highest Rate 1) Education2) Automotive Transportation3) Electronics4) Mining5) Consumer Manufacturing6) Security7) Industrial Manufacturing8) Government9) Construction10) Not for Profit11) Commercial Transportation12) Finance & Insurance13) Wholesale Trade14) Energy & Utilities15) Arts & Entertainment16) Health Care17) Professional, Scientific & Technical Services18) Computer Services, Hardware & Software19) Retail20) Media21) Agriculture, Forestry, Fishing & Hunting22) Business Support Services23) Real Estate24) Food Services25) Aerospace & Defense26) Pharmaceuticals

Lowest Rate

Overall Median Rate: 58%


Key Finding #4

Substantiated Reports


Overall Substantiation Rate Remains High



Overall Substantiation Rate by Industry


Highest Rate 1) Media2) Arts & Entertainment3) Agriculture, Forestry, Fishing & Hunting4) Real Estate5) Health Care6) Pharmaceuticals7) Retail8) Computer Services, Hardware & Software9) Business Support Services10) Not for Profit11) Electronics12) Food Services13) Energy & Utilities14) Finance & Insurance15) Professional, Scientific & Technical Services16) Government17) Consumer Manufacturing18) Security19) Construction20) Commercial Transportation21) Industrial Manufacturing22) Aerospace & Defense23) Education24) Wholesale Trade25) Mining26) Automotive Transportation

Lowest Rate

Overall Median Rate: 40%


Substantiated Anonymous vs. Named Reports



Substantiation Rate by Allegation Category



Key Finding #5

Case Closure Time


Case Closure Shows Improvement in 2016



What do you think was the biggest factor in the decreasing case closure times?


Industry Case Closure Times


Highest Rate 1) Mining2) Computer Services, Hardware & Software3) Electronics4) Government5) Pharmaceuticals6) Automotive Transportation7) Not for Profit8) Real Estate9) Agriculture, Forestry, Fishing & Hunting10) Food Services11) Education12) Energy & Utilities13) Professional, Scientific & Technical Services14) Construction15) Security16) Industrial Manufacturing17) Finance & Insurance18) Business Support Services19) Media20) Aerospace & Defense21) Commercial Transportation22) Consumer Manufacturing23) Wholesale Trade24) Health Care25) Arts & Entertainment26) Retail

Lowest Rate

Overall Median Rate: 42 Days


Key Finding #6

Report Intake Methods


Web Reporting Continues to Trend Up



Substantiation Rates by Report Intake Method



Key Finding #7

Reports of Retaliation


Where does retaliation prevention fall on your list of E&C program priorities for 2017?


Organizations Still Not Getting the Chance to Address Retaliation Allegations Internally



Retaliation Substantiation Rates Remain Elevated



Key Finding #8

Geographical Data


Geographic Reporting



Substantiated reports by Geography


Key Finding #9

Organizational Employee Count



Report Volume by Organizational Employee Count


Anonymity and Case Closure by Organizational Employee Count



Overall Substantiation Rate by Organizational Employee Count


Anonymous vs Named Substantiation Rates


Key Takeaways & Best Practice Recommendations


6 Key Takeaways

1) Increase focus on anti-retaliation efforts

2) Continue work on getting case closure times back within best practice ranges

3) Get a more complete picture of your risks by documenting all reports in one centralized incident management system

4) Make the business case for matching your report volume with appropriate resources

5) Encourage employees to see your hotline as a resource for information, not just a channel for reporting

6) Take advantage of the new data this year relating to geography and organizational size


Incident Management Systems Create Exponential Visibility & Program Effectiveness

Moving Beyond the Basics

• Nearly Double Risk Visibility: Documenting reports from all intake channels (not just web & hotline) in an incident management system creates nearly twice as much visibility into potential E&C risks

• Work Smarter: Customized workflows standardize and simplify report management tasks, helping you capture, assign and resolve cases more effectively, efficiently and consistently

• See Trends: Advanced analytics gives you the ability to see program gaps, measure program effectiveness, proactively spot trends and identify and address issues

• Make it Easier to Document Issues: Custom web forms allow you to more efficiently capture and route reports—and make it easier for employees and managers to document issues

• Better Protect Your Organization: More documentation also provides a stronger legal defense in the event of a lawsuit or regulatory action


Industry-Specific Benchmarking Provides More & Better Insight Into E&C HealthMoving Beyond the Basics

• As our industry ranking slides showed, using accurate industry-specific benchmarking is critical, as there can be striking differences in benchmarks across industries.

• Industry-specific benchmarking can help you, your board and your senior leadership understand critical issues such as:

− Are our metrics consistent with or out of line with peers?

− What E&C trends are prevalent or unique in our industry—and which ones should we focus on?

− Are there opportunities to achieve a competitive advantage by adding focus or resources to an aspect of our E&C program that may be an issue for competitors?


Join Compliance Next!


Additional Resources NAVEX Global offers many valuable resources for helping you increase program effectiveness by leveraging your hotline and incident management data. Visit our website www.navexglobal.com to find these resources and more:

White Papers:

• Whistleblower Hotlines and Case Management Solutions—Major Challenges and Best Practice Recommendations

• Key Elements for Effective Compliance Program Board Reporting

• Maximizing the Benefits of Hotline Data: Analysis and Benchmarking

On-Demand Webinars:

• Whistleblowing & Retaliation: Legal Developments And Practical Advice

• How Do I Prove My E&C Program is Effective? The Art & Science of Effectiveness Measurement

Learn More About Our Solutions:

• Hotline Solutions

• EthicsPoint Incident Management

• Integrity Diagnostics™ Custom Benchmarking

• Strategic Consulting: The Advisory Services Team

http://www.navexglobal.com/

http://www.navexglobal.com/resources/whitepapers/whistleblower-hotlines-and-case-management-solutions-major-challenges

http://www.navexglobal.com/resources/whitepapers/Key-Elements-Effective-Compliance-Program-Board-Reporting

http://www.navexglobal.com/resources/whitepapers/how-maximize-benefits-hotline-data-benchmarking

http://www.navexglobal.com/resources/webinars/whistleblowing-and-retaliation_legal-developments-and-practical-advice

http://www.navexglobal.com/resources/webinars/how-do-i-prove-my-ec-program-is-effective_the-art-and-science

http://www.navexglobal.com/products/report-resolve/hotline-reporting

http://www.navexglobal.com/products/report-resolve/incident-management

http://www.navexglobal.com/products/assess-monitor/custom-benchmarking

http://www.navexglobal.com/products/expert-guidance/strategic-consulting


Carrie Penman, CCO & SVP of Advisory [email protected]

Edwin O’Mara, Ops Manager, Advisory [email protected]

Thank You for Your Participation

mailto:[email protected]

mailto:[email protected]

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