Variation, Volatility & Growth: The State of Incident Management NAVEX Global 2021 Incident Management Benchmarking Report
Carrie Penman, Chief Risk and Compliance Officer | NAVEX GlobalAndrew Burt, Content Developer | NAVEX Global
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About the Presenters
Carrie PenmanChief Risk & Compliance Officer
Andrew Burt
NAVEX GlobalContent Developer
NAVEX Global
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Agenda
• Introductions
• Benchmark Methodology
• Key Findings• Impact of COVID-19 and the Events of 2020
• Acceleration of Ongoing Trends
• Compliance Met the Moment
• Key Takeaways
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Poll Question
What one word most describes reporting at your company in 2020?
• Complex
• Healthy
• Evolving
• Static
• COVID-19
• Bizarre
• Other (chat your response)
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02
Acceleration of Ongoing TrendsPreviously identified long-term
trends saw growth accelerated or unaffected by the events of 2020
03
Compliance Met the Moment
Variation, Volatility & GrowthThree Key Categories of Findings and a Few Red Flags
01
Impact of COVID-19 and the Events of 2020
Shift in the size and shape of reporting and investigation
Overall, compliance functions were able to overcome these challenges – with
some significant exceptions.
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Key Statistics
Reports From Around the World
Top 12 Industries
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Impact of COVID-19 and the Events of 202001
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Report Volume Declined For the First Time
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Gap Between Web & Phone Only vs. All Sources Narrowed
0.2
0.3
0.2
0.2
0.3
0.4
0.4
0.3
14
13.8
11.6
14.8
10.6
5.2
5.0
5 15
7.3
7 9 11 1331
2017
2018
2019
2020
1.1
1.1
1.0
1.3
1.8
2.1
2.0
1.7
Organizations that track only reports from web & hotline
Organizations that track reports from all sources
Reports per 100 Employees
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Median Reports per 100 Employees
01
By Employee Count
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Report Volume by Month Shows Volatility
01
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COVID-19 Reporting Rate Tracked With COVID Death Rate01
Per
cent
age
of
Tota
l Rep
ort
s
Deaths
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3%
4%
11%
19%
63%
3%
4%
7%
21%
65%
2%
5%
6%
16%
70%
0% 10% 20% 30% 40% 50% 60% 70%
2018 2019 2020
Median Percentage Reporting Shows EHS Spike
Accounting, Auditing & Financial Reporting
Misuse & Misappropriation of Corporate Assets
Environment, Health & Safety
Business Integrity
HR, Diversity & Workplace Respect
01
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Monthly Reports by Allegation Category Show VariationP
erce
ntag
e o
f To
tal R
epo
rts
01
17%
29%
49%
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Median Reporting Rate by Intake Method Shows Continued Web Growth
02
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58%59%
57%56%
58%59%
61%60%
62%62%
64%65%
50%
55%
60%
65%
70%
75%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Long-Term Steady Drop in Median Anonymous Reporting 02
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Median Anonymous Reporting Rate Highest in EHS02
By Category
60%
76%
59%
54%
44%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Misuse and Misappropriation of Corporate Assets
Environment, Health and Safety
HR, Diversity and Workplace Respect
Business Integrity
Accounting, Auditing and Financial Reporting Reporting
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Reporter Follow-up Rate for Anonymous Reports Remains Low
02
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Gap Between Incident & Report Dates Widens
17
21
9
26
36
28
10
17
8
18
16
21
0 5 10 15 20 25 30 35 40
2019 2020
Accounting, Auditing & Financial Reporting
Misuse & Misappropriation of Corporate Assets
Environment, Health & Safety
Business Integrity
HR, Diversity & Workplace Respect
Overall
Number of Days Between Incident & Report Date
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External Reporting 02
Whistleblower Tips to the SEC
Source: “Annual Report to Congress on the Dodd-Frank Whistleblower Program.” Office of the Whistleblower, U.S. Securities and Exchange Commission, November 2020.
3,001
3,238
3,620
3,923
4,218
4,484
5,282
5,212
6,911
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
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Poll QuestionWhat do you think is driving the delay in internal reporting?
• Fear of retaliation
• Increased external reporting incentives
• Isolation from peers / support network
• Accessibility to reporting mechanisms
• Other (please use the chat)
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Percentage of Retaliation Reports Continues to Decline
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Substantiation Rate of Retaliation Reports Holds Steady
02
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Percentage of Harassment vs. Discrimination Reports Continues to Decline
02
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Substantiation Rate of Harassment & Discrimination Reports Holds Steady
02
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Poll QuestionWhat do you think was the biggest contributing factor to the decrease in reporting in cases of retaliation?
• Decrease in misconduct
• Higher fear of retaliation
• Other (please post in the chat)
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Median Case Closure Time in Days Improved Despite Remote Investigations
03
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Largest Drop in Median Case Closure Times Came in EHS Reporting
03
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Median Overall Substantiation Rate Steady03
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Median Substantiation Rate Declined Primarily in EHS03
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“Other” Reporting Continues to Be Most Substantiated
03
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Poll Question
What do you think was the biggest contributing factor in case closure time reductions?
• Fewer cases
• Remote investigations easier
• Repeat COVID-related reports
• Other (please use the chat)
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Key Takeaways &
Best Practice Recommendations
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Key Takeaways• Incident Management was greatly impacted by COVID-19 and associated events
• Report volumes declined for the first time ever• Total report volumes and reporting by type varied greatly by month • Reporting was tied to COVID waves
• Some long-term trends were accelerated by recent events; others surged despite their effects• Web reporting continued to grow • Anonymous reporting continued it decline• Reports of retaliation, harassment and discrimination continued to decline as a percentage of overall reporting
• Compliance effectively met the moment• Case closure times improved• Substantiation rates held steady
• However, red flags remain, including:• Decrease in overall reporting • Delay in internal reporting• Lower reports of retaliation
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Best Practices
• Get a more complete picture of your risks by documenting all reports in one centralized incident management system
• Increase awareness of all reporting channels
• Prevent and mitigate retaliation through training, awareness and demonstrated actions
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Additional Resources 2021 Incident Management Benchmark Report
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