The Changing Role of Technology in the Fight Against Risk Fraud, and Abuse

Posted by Amanda Nieweler

on January 16, 2015

How Technologies Can Work Hand in Hand for the Same Goal

I’ve been reading many articles on how internal auditors are looking at complimenting their skills and technology with additional technology in the fight against occupational fraud and abuse. We believe that partnering with ethics hotlines makes total sense.

Each technology speaks together nicely. It seems that there’s an increasing need to collaborate between audit, risk management, governance, and ethics and compliance functions.

Larger, global organizations that operate in different regions, need to ensure that their regulatory compliance is up to par. Their risk of frauds, bribery, and corruption is compounded by their greater headcount, varying locations, and differing cultures. stock illustration risk profit loss cubes

The importance for due diligence increases exponentially, and the need for a strong compliance program becomes very apparent, with the ability to complement all aspects of risk management and compliance seamlessly and simply.

We’ve written a few times about the data breaches that have taken place within Target, JPMorgan Chase, and Home Depot and where systems broke down. It’s now very apparent that internal controls, coupled with ethics reporting can play a very valuable role in risk management.

There are two sides of the equation here. The internal systems that continuously monitor fraud and risks from a technology standpoint, to the internal systems that ‘continuously monitor’ fraud and risks from an employee standpoint. The latter is in quotes because employees’ part in the ‘continuous monitoring’ is the very fact that they are the #1 fraud detection method – anonymous employee tips are the #1 method that organizations find out about internal fraud.

Now employees aren’t ‘running in the background’ looking for anomalies like a system technology is. But they are the ones who see that said technology may not have caught up yet to the misconduct that’s happening, that the employees have known about before the technology figured it out and sent out an alert.

Many organizations are seeing the benefit of embracing third-party ethics reporting systems as part of their overall risk, compliance, and ethics plan, and working with their existing analytics technologies. These organizations are also seeing the benefits of third-party programs as cost effective, quick and easy to deploy, and genuinely intuitive to learn and use.

The benefits of these technologies working together can be immense. Continuously monitoring data and systems, at the same time having available an anonymous ethics reporting hotline where all stakeholders can report on wrongdoing can bring organizations to the next level of regulatory compliance, success and growth.

We believe that senior management wants to provide greater contributions and be recognized for the value they deliver to their organizations. We have the tools to make that happen.

eBook: Whistleblower Hotlines: Internal vs. External