Red Flag Reporting
Don’t Let Unethical Behavior TEAR Your Organization Apart
Herbein’s team of Certified Fraud Examiners provides the most cost effective internal control an organization can have (an ethics hotline), empower the most successful mechanism for catching unethical behavior (open channels of communication) and support the most powerful tool for deterring bad actions (a strong tone at the top). Our service is affordable… statistics show that only one reported event would cost as much as decades of Red Flag Reporting.
Red Flag Reporting’s Comprehensive System of Education, Communication, and Employee Helpline Protects Your Company
Are you concerned about unethical behavior in your company?Is your risk management program good enough?
- How would you be able to uncover any unethical actions?
- Would you like a system that empowers your employees and demonstrates to them that your organization is committed to their safety and well-being?
- Are you spending too much time on issues of integrity?
- Are you spending too much money on insurance, workers compensation, government fines, malicious lawsuits, etc.?
- Do you feel like you are ahead of your organization’s curve related to the areas of safety, harassment, discrimination and other costly issues?
- Do you fear for the long-term reputation of your organization as a result of unethical behaviors?
Did you know?
- The number one means of preventing fraud is tone at the top. A sound reporting system is a strong and consistent reminder of a positive tone.
- Fraud is 51% more likely to be detected by hotline tips. Fraud is only 33% likely to be detected when there is no hotline in place.
- Fraud reporting systems need to provide anonymity and confidentiality. (Employees need to feel that they will not be identified and/or targeted for retaliation)
- Catching fraud is 50% quicker when hotline is in place.
- Losses due to each fraud incident are reduced by an average of 41% when a hotline is in place.
- 43% of frauds are found by someone speaking up. Hotlines facilitate such communication.
- Average fraud at an organization with a hotline is $100,000 compared to $180,000 at those without hotlines.
- It is estimated that 3 out of 5 companies will be sued by an employee, with average court settlements of $40,000. The average verdict in an employee-related case is $140,000.
What it means
- Having a hotline in place allows for employees to address a situation early rather than letting it continue to grow and/or end up in a courtroom.
- Red Flag Reporting can help detect and deter many issues including Theft, Fraud, Substance Abuse, Safety Violations, Discrimination, Harassment, Vandalism, Food Safety Issues, and issues which may be specific to your organization.
- Red Flag Reporting gives employees a place to turn when they see something going on that is contrary to the wellness of the organization.
- Herbein offers Red Flag Reporting which is a complete system to detect and address unethical behavior as soon as possible to minimize damage and risk.
- The system includes education, communication, and most significantly, a 24-hour hotline which guarantees confidentiality and anonymity.
- Because of the nature of this service, only Certified Fraud Examiners can implement the system.
- Herbein’s partner Bob Caster is our contact for Red Flag Reporting.
- Bob is available to meet with you to discuss your organization’s situation and determine whether Red Flag Reporting would be beneficial.
Robert M. Caster, CPA, CFE, CIRA, CFF – Reading, PA