NAVEX Global’s 2014 Hotline Benchmark Report Marks Notable Changes in the Way Employees Use Company Hotlines/Helplines

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Carrie Penman, Chief Compliance Office and Senior Vice President of Advisory Services Division
NAVEX Global

For the last five years, NAVEX Global has been proud to provide the industry’s best and most statistically accurate hotline benchmarking data. Our annual reports are a trusted resource for ethics and compliance officers, executives and boards of directors who have program oversight responsibilities.

Now that 2013 has come to a close, we have been hard at work calculating the 2014 Hotline Benchmark Report for your use in evaluating the effectiveness of your hotline reporting system. While we are wrapping up the full report, we wanted to provide a preview of three notable statistics we found in this year’s data. 

1. There has been a sustained increase in overall Report Volume

While Report Volume remained steady for nearly a decade, we have seen a sustained and significant increase in Report Volume per 100 employees over the past three years. In our full report, we offer several reasons why this may be occurring.

2. An ever-increasing number of Repeat Reporters continue to provide valuable information

The number of Repeat Reporters has more than doubled in the last five years with a 4 percent increase in Repeat Reporters making reports in 2013. Most surprising about this statistic is that reports submitted by Repeat Reporters are being substantiated at a rate 4 percent higher than First Time Reporters. 

3. Diversity, workplace respect and human resource issues rise to highest level in five years

While diversity, workplace respect and human resources type issues have always been the leading category of issues reported, this year the percentage of these reports has risen to its highest level in five years — 73 percent of all reports made. And while we did see a 4 percent increase in these reports from last year, we did not see a change or drop in the substantiation rate from last year. 

The infographic below displays all three trends visually. You can dig even deeper into the details of the 2014 Hotline Benchmark Report by attending the upcoming webinar, Benchmarking Your Hotline: How Does Your Data Measure Up Against NAVEX Global’s 2014 Benchmarks? on March 13 at 10 a.m. PST/1 p.m. EST. This is your chance to hear from experienced ethics officers about how to best use the report’s data to ensure you are getting the most from your internal reporting systems. Register today. 

Tomorrow: The Only Line of Defense Against Fraud Existing Today

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Allan Bachman, CFE
ACFE Education Manager

Reports from far afield…continued

The Monday evening ACFE networking reception was a great success; featuring food, wine, Belgian beers and, of course, opportunities to network and socialize with attendees from all over Europe. After the event, many informally coalesced and went to dinner as a group.

After some coaxing, Jeffrey Robinson, renowned financial crime author and the Tuesday morning general session speaker, put in an appearance Monday night and held court with terrific stories and personal recollections which have made him the great author he is. He was still at it well after the reception had officially concluded.

ACFE President and CEO Jim Ratley spent a lot of time reminiscing with attendees who had met him at other conferences through the years. His presence this year was much appreciated, and Jim loves interacting with members in this way.

Tuesday morning’s session led off with Robinson, who spoke on, “The New Fraud.” He said early in his presentation, “If fraud were a disease, it would not be an epidemic, it would be a pandemic.” He went on to describe some major frauds around the world, how they were perpetrated, uncovered, investigated and the outcomes. He has written extensively on the topic of fraud. Throughout his presentation he referred to the ACFE’s 2010 Report to the Nations, quoting statistics in that report to support his claims about the ubiquity of fraud and what he thinks the 21^st century portends.

He made a case for hotlines, specifically mentioning EthicsLine, as a key component to what he called “Tomorrow,” an additional aspect of the fraud triangle which acts as a deterrent. “Tomorrow” is how you create the impression that fraudsters will be caught. He gave several humorous, actual cases of how creating the impression of getting caught, through simple inexpensive means, actually achieved that result.

Robinson closed saying that anti-fraud professionals like the ones in the room and the ACFE membership in general were the only line of defense against fraud existing today.

He was critical of how law enforcement, especially at the federal level, has turned away to focus on other crimes and what was once their forte has been largely ignored.

Robinson took a few questions and the audience left energized by a dynamic speaker with a lot of experience and great vignettes. Thanks to Jeffrey, and cheers to another great day in Brussels.