The Network and BDO Consulting Release the 2009 Corporate Governance and Compliance Hotline Benchmarking Report
Report Indicates Significant Increase in Fraud Incident Reporting in First Quarter 2009
05.29.2009 – Norcross, Ga. - The Network, Inc. (www.tnwinc.com), a leading provider of corporate compliance solutions including the prevention, detection, management and analysis of fraud, along with BDO Consulting today released the 2009 Corporate Governance and Compliance Hotline Benchmarking Report.
The Network and BDO Consulting (www.bdoconsulting.com) closely examined compliance hotline related activity in order to provide a comprehensive overview of the critical ethics and compliance issues facing organizations.
For a free copy of the benchmarking report visit www.tnwinc.com or email benchmarking@reportline.net .
“Providing access to data and analytics, which allows companies to compare incident, investigation and resolution information to other similar organizations, is a critical component in helping an organization reduce risk and build an ethical culture,” said Luis Ramos, chief executive officer of The Network, Inc. “Through the use of this published report and the subsequent incorporation of this benchmarking data into the software provided to clients to manage incidents, organizations can begin to analyze and spot trends and move from simply detecting potential incidents to avoiding them altogether.”
Key findings of the 2009 Corporate Governance and Compliance Hotline Benchmarking Report include:
- Fraud-related incidents, including reports on corruption and fraud, misuse of assets, conflicts of interest and Foreign Corrupt Practices Act (FCFA) violations, from first quarter 2006 to first quarter 2009, surged from 10.9 percent to 21 percent.
- The industries with the highest overall incident reports were retail trade; service industries; and transportation, communication and utilities.
- When case outcome was provided, 71 percent of reports warranted an investigation with 38 percent resulting in corrective action taken in 2008.
- For the last five years, the majority of participants remained anonymous when submitting an incident via hotline; however, fewer respondents opted to remain anonymous in 2008 as compared to 2007.
In 2008, 70 percent of participants did not notify management of an issue before making a report; this remained steady across all five years of data.
“Our goal for this benchmarking study was to identify a starting place for companies to evaluate their own ethics and compliance programs, particularly fraud prevention, detection and investigation,” said Timothy Mohr, CFE and partner at BDO Consulting.
“Organizations will find benchmarking data a valuable tool in determining if changes are needed to their program, if investigations should be utilized and what should be done to build an ethical culture within their organization.”
The 2009 Corporate Governance and Compliance Hotline Benchmarking Report is a comprehensive examination of hotline activity within organizations worldwide. Analyzing trends over a five-year period, the report includes aggregate data from 1,328 organizations with a total of more than 12 million employees. The data is compiled from actual incidents reported by clients of The Network and was analyzed by BDO Consulting.
For more information regarding this benchmarking report, visit www.tnwinc.com or email benchmarking@reportline.net.
About The Network, Inc.
The Network, Inc. has provided clients with software and services to help them address critical issues such as compliance, risk management and the creation of an ethical culture for more than 25 years. Through a holistic integration of information capture, incident and case management, business intelligence, analytics and employee communications, The Network helps thousands of organizations in every industry, including nearly 50 percent of the Fortune 500. For more information, visit www.tnwinc.com.
About BDO Consulting
BDO Consulting, a division of BDO Seidman, LLP, provides litigation, investigation, restructuring and risk advisory services to major corporations, law firms, insurance companies, financial services entities, and government organizations. Our highly experienced and well credentialed professionals draw upon a range of industry knowledge and completed consulting engagements throughout the United States and internationally to provide clients with unparalleled service. BDO Consulting leverages the global industry and accounting knowledge of the BDO International network, providing rapid, strategic advice to assist our clients with dispute resolution, risk management, financial solvency and regulatory compliance issues. www.bdoconsulting.com
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- 2009 Corporate Governance and Compliance Hotline Benchmarking Report released today
- Fraud-related incidents from first quarter 2006 to first quarter 2009, surged from 10.9 percent to 21 percent
- Highest overall incident reports were in retail; service industries; and transportation, communication and utilities
- 71 percent of reports warranted an investigation with 38 percent resulting in corrective action taken in 2008
- Fewer respondents, when submitting an incident via hotline, opted to remain anonymous in 2008 as compared to 2007
- Resource Links
- 2009 Corporate Governance and Compliance Hotline Benchmarking Report
- Follow The Network on Twitter
- The Network CEO Luis Ramos on the rise of fraud in the workplace on Fox Business News
- Time magazine article on "The Reason Fraud Spikes in a Recession"
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- corporate, fraud, employee fraud, hotline, whistleblower, compliance, SOX, ethics
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