variation, volatility & growth: the state of incident

Variation, Volatility & Growth: The State of Incident Management NAVEX Global 2021 Incident Management Benchmarking Report

Carrie Penman, Chief Risk and Compliance Officer | NAVEX GlobalAndrew Burt, Content Developer | NAVEX Global

Copyright NAVEX Global, Inc. All Rights Reserved. |

About the Presenters

Carrie PenmanChief Risk & Compliance Officer

Andrew Burt

NAVEX GlobalContent Developer

NAVEX Global


Agenda

• Introductions

• Benchmark Methodology

• Key Findings• Impact of COVID-19 and the Events of 2020

• Acceleration of Ongoing Trends

• Compliance Met the Moment

• Key Takeaways


Poll Question

What one word most describes reporting at your company in 2020?

• Complex

• Healthy

• Evolving

• Static

• COVID-19

• Bizarre

• Other (chat your response)


02

Acceleration of Ongoing TrendsPreviously identified long-term

trends saw growth accelerated or unaffected by the events of 2020

03

Compliance Met the Moment

Variation, Volatility & GrowthThree Key Categories of Findings and a Few Red Flags

01

Impact of COVID-19 and the Events of 2020

Shift in the size and shape of reporting and investigation

Overall, compliance functions were able to overcome these challenges – with

some significant exceptions.


BenchmarkMethodology


Key Statistics


Key Statistics

Reports From Around the World

Top 12 Industries


Key Findings


Impact of COVID-19 and the Events of 202001


Report Volume Declined For the First Time


Gap Between Web & Phone Only vs. All Sources Narrowed

0.2

0.3

0.2

0.2

0.3

0.4

0.4

0.3

14

13.8

11.6

14.8

10.6

5.2

5.0

5 15

7.3

7 9 11 1331

2017

2018

2019

2020

1.1

1.1

1.0

1.3

1.8

2.1

2.0

1.7

Organizations that track only reports from web & hotline

Organizations that track reports from all sources

Reports per 100 Employees


Median Reports per 100 Employees

01

By Employee Count


Report Volume by Month Shows Volatility

01


COVID-19 Reporting Rate Tracked With COVID Death Rate01

Per

cent

age

of

Tota

l Rep

ort

s

Deaths


3%

4%

11%

19%

63%

3%

4%

7%

21%

65%

2%

5%

6%

16%

70%

0% 10% 20% 30% 40% 50% 60% 70%

2018 2019 2020

Median Percentage Reporting Shows EHS Spike

Accounting, Auditing & Financial Reporting

Misuse & Misappropriation of Corporate Assets

Environment, Health & Safety

Business Integrity

HR, Diversity & Workplace Respect

01


Monthly Reports by Allegation Category Show VariationP

erce

ntag

e o

f To

tal R

epo

rts

01

17%

29%

49%


Acceleration of Ongoing Trends02


Median Reporting Rate by Intake Method Shows Continued Web Growth

02


58%59%

57%56%

58%59%

61%60%

62%62%

64%65%

50%

55%

60%

65%

70%

75%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Long-Term Steady Drop in Median Anonymous Reporting 02


Median Anonymous Reporting Rate Highest in EHS02

By Category

60%

76%

59%

54%

44%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Misuse and Misappropriation of Corporate Assets

Environment, Health and Safety

HR, Diversity and Workplace Respect

Business Integrity

Accounting, Auditing and Financial Reporting Reporting


Reporter Follow-up Rate for Anonymous Reports Remains Low

02


Gap Between Incident & Report Dates Widens

17

21

9

26

36

28

10

17

8

18

16

21

0 5 10 15 20 25 30 35 40

2019 2020

Accounting, Auditing & Financial Reporting

Misuse & Misappropriation of Corporate Assets

Environment, Health & Safety

Business Integrity

HR, Diversity & Workplace Respect

Overall

Number of Days Between Incident & Report Date


External Reporting 02

Whistleblower Tips to the SEC

Source: “Annual Report to Congress on the Dodd-Frank Whistleblower Program.” Office of the Whistleblower, U.S. Securities and Exchange Commission, November 2020.

3,001

3,238

3,620

3,923

4,218

4,484

5,282

5,212

6,911

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

FY2012

FY2013

FY2014

FY2015

FY2016

FY2017

FY2018

FY2019

FY2020


Poll QuestionWhat do you think is driving the delay in internal reporting?

• Fear of retaliation

• Increased external reporting incentives

• Isolation from peers / support network

• Accessibility to reporting mechanisms

• Other (please use the chat)


Percentage of Retaliation Reports Continues to Decline


Substantiation Rate of Retaliation Reports Holds Steady

02


Percentage of Harassment vs. Discrimination Reports Continues to Decline

02


Substantiation Rate of Harassment & Discrimination Reports Holds Steady

02


Poll QuestionWhat do you think was the biggest contributing factor to the decrease in reporting in cases of retaliation?

• Decrease in misconduct

• Higher fear of retaliation

• Other (please post in the chat)


Compliance Met the Moment03


Median Case Closure Time in Days Improved Despite Remote Investigations

03


Largest Drop in Median Case Closure Times Came in EHS Reporting

03


Median Overall Substantiation Rate Steady03


Median Substantiation Rate Declined Primarily in EHS03


“Other” Reporting Continues to Be Most Substantiated

03


Poll Question

What do you think was the biggest contributing factor in case closure time reductions?

• Fewer cases

• Remote investigations easier

• Repeat COVID-related reports

• Other (please use the chat)


Key Takeaways &

Best Practice Recommendations


Key Takeaways• Incident Management was greatly impacted by COVID-19 and associated events

• Report volumes declined for the first time ever• Total report volumes and reporting by type varied greatly by month • Reporting was tied to COVID waves

• Some long-term trends were accelerated by recent events; others surged despite their effects• Web reporting continued to grow • Anonymous reporting continued it decline• Reports of retaliation, harassment and discrimination continued to decline as a percentage of overall reporting

• Compliance effectively met the moment• Case closure times improved• Substantiation rates held steady

• However, red flags remain, including:• Decrease in overall reporting • Delay in internal reporting• Lower reports of retaliation


Best Practices

• Get a more complete picture of your risks by documenting all reports in one centralized incident management system

• Increase awareness of all reporting channels

• Prevent and mitigate retaliation through training, awareness and demonstrated actions


Additional Resources 2021 Incident Management Benchmark Report

Coming soon to your inbox!

White PapersDefinitive Guide To Incident ManagementHotlines & Headlines: Reporting & ReputationStrength in Numbers: The ROI of ReportingHarassment Investigation Checklist

Learn More About Our SolutionsEthicsPoint Incident ManagementGRC Insights

Join the Conversation at Risk & Compliance Matters

https://www.navexglobal.com/en-us/resources/definitive-guides/definitive-guide-incident-management?RCAssetNumber=1825

https://www.navexglobal.com/en-us/resources/white-papers/hotlines-headlines-relationship-between-hotline-reporting-corporate-reputation?RCAssetNumber=5845

https://www.navexglobal.com/en-us/resources/white-papers/hotlines-headlines-relationship-between-hotline-reporting-corporate-reputation?RCAssetNumber=5845

https://www.navexglobal.com/compliancenext/ampifying-your-impact/harassment-investigation-checklist/

https://www.navexglobal.com/en-us/products/ethicspoint-incident-management-software

https://www.navexglobal.com/en-gb/products/custom-compliance-programme-benchmarking

https://www.navexglobal.com/blog/

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