The Institute of Internal Auditors (The IIA) and the Association of Certified Fraud Examiners (ACFE) have released a pivotal report titled Building a Best-in-Class Whistleblower Hotline, which delves into the essential elements of effective whistleblower hotline programs across global workplaces. This report aims to provide organizations with valuable benchmarking data and insights to enhance their whistleblower initiatives.
Key Findings and Insights
The report presents several key findings that highlight the current state of whistleblower hotline programs worldwide:
- Benchmarking Data: Conducted through a global survey of members in December 2022 and January 2023, the report reveals that 75% of respondents indicated their organizations have a whistleblower hotline program. In contrast, 25% reported that they either do not have a hotline program, are considering one, or are uncertain about the existence of such a program.
- Fraud Detection: ACFE President and CEO, Bruce Dorris, emphasized the importance of whistleblower tips in detecting fraud schemes. He noted that “without effective whistleblower hotline programs in place, employees may not know where to turn if they suspect fraud is occurring within their organization.” This underscores the critical role that these programs play in an organization’s overall fraud prevention strategy.
- Roles of Internal Auditors: Anthony Pugliese, President and CEO of The IIA, highlighted the vital contributions of internal auditors and anti-fraud practitioners in administering and investigating whistleblower hotline programs. This collaboration emphasizes the need for robust fraud detection and prevention frameworks within organizations.
Report Structure
The report is divided into two main parts:
- Benchmarking Hotline Programs: This section examines the structure and components of whistleblower hotline programs as reported by survey respondents, providing a comprehensive overview of current practices.
- Effectiveness of Hotline Programs: This part explores the factors that contribute to the success of hotline programs, offering insights into best practices.
Notable Findings
Among the significant findings presented in the report:
- Multiple Reporting Channels: A majority of organizations (83%) offer various channels for reporting issues, including dedicated phone numbers, online reporting mechanisms, and dedicated email addresses.
- Anonymous Reporting: An impressive 91% of hotline programs allow for anonymous reporting, while 83% are accessible 24 hours a day, 365 days a year.
- Anti-Retaliation Policies: Approximately 72% of hotline programs include formal anti-retaliation policies, which are critical for encouraging employees to report concerns without fear of repercussions.
- Key Success Factors: Respondents identified several top considerations for a successful hotline program, including anonymity, awareness, follow-up actions, and protection against retaliation.
Conclusion
The Building a Best-in-Class Whistleblower Hotline report serves as a vital resource for organizations seeking to establish, assess, or enhance their whistleblower programs. By providing a roadmap for effective implementation, the report aims to foster an environment where employees feel empowered to report fraud and misconduct, ultimately strengthening the organization’s integrity and resilience.
To access the full report and view an infographic summarizing additional survey findings, visit theiia.org and ACFE.com.