Private companies need to have whistleblower hotlines and internal controls just as much as large public organizations. One-third of all bankruptcies or failures are due to employee theft or fraud. Smaller firms are more susceptible to the damage of fraud. Implementing tools like hotlines and case management solutions ensure fraud protection.
According to the Certified General Accountants Association of Canada, in a 2011 Fraud Report, $3.2 Billion was lost to occupational fraud annually within Canadian small businesses operating with fewer than 500 employees. Only 20% of SMEs surveyed had a fraud response plan – 80% did not!
Ethics hotlines and case management tools provide systems that deter potential fraud in the first place. Small business owners should commit to taking control by developing a company-wide anti-fraud policy to establish four core procedures:
- Verification that anti-fraud work practices are in place and are followed;
- Written procedures that dictate work processes in critical areas ie: accounting and inventory control; and
- A system that segregates key responsibilities and builds protection through checks and balances.
- WhistleBlower protection and response programs work 24/7/365 to protect your reputation, your organizational assets and your employees.
Key to Detecting and Deterring Fraud:
- Introduce anonymous hotlines and case reporting systems – Employee tips are the number one way to detect fraud
- The ethics hotlines and case management systems actually enhance the corporate culture once employee are shown the new level of respect and responsibility that comes with a comprehensive hotline and Ethics Reporting systems