Fraud Prevention: 3 Ways to Empower Employees as Whistleblowers
Employees are an important company asset. It is imperative for companies to be able to manage employees well, including involving employees in managing fraud risk. Based on the 2019 Indonesian Fraud Survey report, reporting is the most effective method of disclosing fraud and most fraud cases were disclosed by employees (50.2%). The results of this survey are in line with the 2018 Report to the Nations. The role of employees as the front guards of fraud prevention needs support from the company. So, what can companies do?
1. Provide a whistleblowing system
Becoming a whistleblower is a risky decision. Many whistleblowers end up with bullying, exclusion, threats, and even dismissal. This has certainly made employees have second thoughts and even discourages them from reporting the ongoing fraud. Huge losses are the consequence that companies would face if this continues. Therefore, companies need to minimize these risks by providing channels that allow for the anonymity of whistleblowers.
2. Establish clear policies and regulations
Establishing policies and regulations regarding ethics, whistleblowing system and the safety of whistleblowers are essentials. Not only that, in order for policies and regulations to be effectively implemented, a good tone from the top and good communication to employees are required.
3. Employee training
Empowering employees plays an important role in the success of the whistleblowing system, but it is also a challenge for companies. Companies need to provide training to employees so that they are aware of matters related to fraud, reporting mechanisms and procedures. One of the advantages of training is that it helps companies to control audit costs and reduces the time for external auditors to assess fraud.
Integrity Indonesia, through theCanary® WBSprovides clients with various user-friendly and secure reporting channels. Our well-trained staff and experienced analysts moderate and carefully review incoming reports and ensure the confidentiality of the whistleblowers (if requested). Clients also have access to their dashboard, which allows them to follow up on the reviewed reports.
We are aware that effective communication is one of the keys to the success of the whistleblowing system. Therefore, we assist our clients in the education and communication of the whistleblowing system to their employees by providing designated training and media kits.
Contact ustoday for further information on the Canary® WBS.