can’t miss insights from the 2017 hotline benchmark report ...€¦ · • of those 5,132...

Copyright © 2017 NAVEX Global, Inc. All Rights Reserved. | Page ‹#› © 2017 NAVEX Global, Inc. All Rights Reserved. | Page ‹#›

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

Can’t Miss Insights from the 2017

Hotline Benchmark Report

SCCE Conference – October 2017

Presented by

Carrie Penman | Chief Compliance Officer &

Senior Vice President, Advisory Services

Edwin O’Mara | Product Manager, NAVEX Engage

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

• Introductions

• Our Benchmarking Methodology

• Business Imperatives

of Benchmarking

• Key Findings

• Key Takeaways & Best Practice

Recommendations

• Q&A

• Additional Resources

Agenda


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

Benchmark Methodology

Copyright © 2017 NAVEX Global, Inc. All Rights Reserved. | Page 3www.navexglobal.com

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 Care

2) Not for Profit

3) Real Estate

4) Pharmaceuticals

5) Retail

6) Agriculture, Forestry, Fishing & Hunting

7) Arts & Entertainment

8) Energy & Utilities

9) Commercial Transportation

10) Consumer Manufacturing

11) Finance & Insurance

12) Security

13) Business Support Services

14) Food Services

15) Construction

16) Aerospace & Defense

17) Automotive Transportation

18) Government

19) Professional, Scientific & Technical Services

20) Education

21) Media

22) Mining

23) Computer Services, Hardware & Software

24) Industrial Manufacturing

25) Wholesale Trade

26) 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 Reporting3% 3% 2% 2% 2%

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

HR, Diversity and

Workplace Respect69% 73% 69% 71% 72%

Environment, Health

and Safety7% 7% 6% 5% 7%

Misuse, Misappropriation

of Corporate Assets6% 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



Anonymous Reporting in EMEA & APAC Above Global Rates

Source: NAVEX Global's 2017 EMEA & APAC Whistleblowing Hotline Benchmark Report

Median Anonymous Reporting Rate



No Change In Follow-Ups to Anonymous Reports



Education Leads Anonymous Reporting by Industry


Highest Rate 1) Education


3) Electronics

4) Mining


6) Security


8) Government

9) Construction

10) Not for Profit



13) Wholesale Trade



16) Health Care



19) Retail

20) Media



23) Real Estate

24) Food Services


26) Pharmaceuticals

Lowest Rate


58%



Key Finding #4

Substantiated Reports


Overall Substantiation Rate Remains High




EMEA & APAC Overall Substantiation Rate Below Global Figures

Source: NAVEX Global's 2017 EMEA & APAC Whistleblowing Hotline Benchmark Report

Median Overall Substantiation Rate


Overall Substantiation Rate by Industry


Highest Rate 1) Media


3) Electronics

4) Pharmaceuticals

5) Government


7) Not for Profit



10) Health Care


12) Security


14) Education


16) Food Services

17) Retail


19) Construction


21) Mining



24) Real Estate

25) Wholesale Trade


Lowest 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) Mining


3) Electronics

4) Government

5) Pharmaceuticals


7) Not for Profit

8) Real Estate


10) Food Services

11) Education



14) Construction

15) Security




19) Media




23) Wholesale Trade

24) Health Care


26) Retail

Lowest 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 Health

Moving 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?


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



Carrie Penman, CCO & SVP of Advisory Services

[email protected]

Edwin O’Mara, Ops Manager, Advisory Services

[email protected]

Thank You for Your Participation

can’t miss insights from the 2017 hotline benchmark report ...€¦ · • of those 5,132...

Documents