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2019 Regional Whistleblowing Hotline
Benchmark Report WebinarPresented By
Carrie Penman | Chief Risk & Compliance OfficerIan Painter| Associate Marketing Director, EMEA
Raina Hathorne| Product Marketing Manager
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Agenda
• Introductions
• Benchmarking Methodology
• Key Findings
• Best Practice Recommendations
• Additional Resources
• Q&A
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Carrie Penman
Chief Risk & Compliance Officer
NAVEX Global
Presented By
Ian Painter
Associate Marketing Director, EMEA
NAVEX Global
Raina Hathorne
Hotline Product Marketing Manager
NAVEX Global
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New Regional Benchmark Data
1 Million reports
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NAVEX Global Integrated Risk and Compliance Platform
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Benchmark Methodology
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Hotline Benchmark Statistical Snapshot
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Does your E&C programme include the following elements?
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George Washington University’s Hotline Research
• The ROI of Compliance is real and for the
first time, statistically validated
• Increased usage of internal reporting
systems has a measurable impact on
business results
• The more a company uses their hotline
(more reports submitted) the greater the
impact on results
“Evidence on the Use and Efficacy of Internal Whistleblowing Systems” by: Kyle Welch https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3273589
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New George Washington University Hotline Research
• Increased hotline
usage is associated
with fewer negative
news stories
• Secondhand reports are
more likely than firsthand
reports to be substantiated
by management
“Hotlines & Headlines: Examining the Relationship Between Hotline Reporting and Corporate Reputation”
Firsthand Reports Secondhand Reports
47%more likely
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Key Findings
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Report Volume per 100 Employees
Europe and APAC Lag Behind on Report Volume
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• Lack of initiatives and training to help employees know when and what to report
• Tracking reports from a limited choice of channels, e.g. web only
• Fear of retaliation or lack of trust in the reporting process
• Lack of financial incentives to report
• Negative perceptions and cultural differences surrounding whistleblowing
• Restrictions on anonymous reporting
• Lack of whistleblower regulations
• Other - please chat your reasons
POLL QUESTION: Why do you think reporting levels are lowest in Europe?
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Significant Impact of Tracking Reports from All Intake Sources
Organisations that Track Reports from Web & Telephone Only Organisations that Track Reports from All Sources
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Substantiation Rates Lowest in North AmericaMedian Overall Substantiation Rate
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Web Most Popular Channel in APAC & South AmericaReport Intake Method Comparison
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Report Intake Substantiation Rates
Substantiation Rates by Report Intake
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Anonymous Reporting Lowest in EuropeMedian Anonymous Reporting Rate
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Named Substantiation Rates Higher across All RegionsComparison of Substantiation Rates Between Named vs Anonymous Reporters
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Categories of Reports Used
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Percentage of HR Reports Lower in Europe and APACMedian Percentage of Reports by Category
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Percentage of HR Substantiation Lower in Europe and APAC
* Accounting, Auditing and Financial Reporting data set is too small to show a result for APAC
Median Substantiation Rate by Category
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Median Case Closure Time in Days
Case Closure Times Significantly Lower in North America
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POLL QUESTION: What do you think is the biggest contributingfactor for longer case closure times in Europe & APAC?
• A lack of resources to triage and investigation cases promptly
• Cases are taking longer to resolve
• A lack of processes and tools used to assign and manage investigations
• A lack of awareness at boardroom level on the impact of case closure time
• It is unclear who owns resolution for cases
• Other - please chat your reasons
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Case Closure Time (in days) by Category
Environment, Health & Safety Reports Close in Fewest Days
APAC EuropeNorth
AmericaSouth
America
Accounting, Auditing and Financial Reporting 82 89 50 n/a
Business Integrity 85 79 40 76
HR, Diversity and Workplace Respect 82 69 38 42
Environment, Health and Safety
59 59 31 31
Misuse, Misappropriation of Corporate Assets
77 71 35 56
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Reporter Allegations vs. Inquiries
Percentage of Inquiries Lower Outside North America
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Percentage of Harassment vs. Discrimination Reports
Harassment and Discrimination Reports
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Percentage of Retaliation Reports
Retaliation Reports
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• Awareness around retaliation as a legitimate issue to report
• Compliance programme activities focused on retaliation
• The impact of #MeToo
• An increase in regulations protecting whistleblowers against retaliation
• An increase in retaliation cases occurring across Europe
• Improvements in organisational culture leading to speaking-up on retaliation
• Other – please chat your reasons
POLL QUESTION: Why do you think there’s been an increase of retaliation reporting in Europe?
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Report Origination by Region
Geography
Region Reports
APAC 8,000+
Europe 35,000+
North America 943,000+
South America 6,000+
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What E&C activities will you prioritise over the next 12 months?
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Best Practice Recommendations & Available Resources
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Key Takeaways for Organisations in Europe & APAC
1. Regularly review whistleblowing
training and awareness activities
2. Work to gain visible board level
commitment to whistleblowing
3. Track reports from multiple channels
4. Focus on decreasing case closure times
5. Encourage employees to see your
hotline as a resource for information,
not just a channel for reporting
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GRC Insights: Industry-Level Benchmarking
• Amplify risk mitigation efforts
• Board-ready reports
• Empower programme leaders
• Stay informed
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Increase your program effectiveness by leveraging these resources and visiting our website www.navexglobal.com
Additional Resources
Whistleblowing White Papers:
• Definitive Guide to Whistleblowing Hotlines and Incident Management
• Strength in Numbers: The ROI of Compliance Programme Hotline Reporting
• 2019 Hotline & Incident Management Benchmark Report
On-Demand Webinars:
• Responding to the Rise of Global Whistleblower Regulations
• Strength in Numbers: Ground Breaking Evidence Prove True Compliance ROI
Join the Conversation:
• Compliance Next
• Ethics & Compliance Matters™
Learn More About Our Solutions:
• Whistleblowing Hotline & Reporting Services
• EthicsPoint Hotline & Incident Management
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Additional Board Reporting Resources
White Papers:
• Key Elements for Effective Compliance Programme Board Reporting
• Definitive Guide to Compliance Programme Assessment
On-Demand Webinars:
• Master Class: Herding Big Cats – Improving Executive & Board Engagement
• Master Class: A CCO, Board Member and Government Monitor Walk Into a Bar
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POLL QUESTION: Please select the topics you would like further information on
• Whistleblowing Hotlines & Reporting Services
• Incident Management Solutions
• Benchmarking Services
• Awareness Programmes
• Ethics and Compliance On-Line Training
• Third Party Due Diligence Solutions
• Enterprise Risk Management Solutions
• Policy & Procedure Management Solutions
• No Information Required
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Carrie Penman, CRCO
[email protected] Painter, Asst. Director Marketing, EMEA
[email protected] Hathorne, Product Marketing Manager
Questions?
