6 disasters you can avoid using whistleblowing compliance management software
The biggest reason why there are huge issues with whistleblowing compliance management software is that it is too complex for less savvy people to deal with. It takes years for someone who does not have the knowledge to understand the internal and external whistleblowers mechanisms. These systems can take a lot of time and effort from the employees and could end up doing more harm than good if not used properly. Whether you have or haven’t managed whistleblowing in business, this article is for you. We'll explain how whistleblowing compliance management software can help your organization reduce the time it takes to identify and manage complaints before they become public, as well as reduce potential risks to your organization. Legal and Regulatory NoncomplianceA whistleblower is a person who reports any form of wrongdoing from inside an organization. The term is most commonly used to refer to employees who report illegal activities by their employers or co-workers, such as fraud, corruption and tax evasion. Whistleblowing compliance is one of the biggest challenges in today’s business world, particularly to a business’s reputation and bottom line. In fact, it can lead to severe financial penalties and even jail time for those responsible, but it doesn't have to. Whistleblowers are often the first line of defense against fraud and corruption in an organization. They provide critical visibility into operations that can help identify risks early on. Fortunately, using whistleblowing compliance management software improves compliance by allowing you to identify noncompliance issues early on. It also enables you to take corrective action before they become major problems for your organization. Lack of Visibility Into OperationsAnother critical challenge to managing fraud is the lack of visibility into operations. Many companies don’t have the necessary tools or processes in place to monitor employee activities. This can lead to costly mistakes and missed opportunities for fraud prevention and control. This lack of visibility into operations is often caused by an organization’s failure to implement the appropriate technology solutions or processes. This can be a problem for businesses in any industry because fraud and corruption are present in all types of organizations. It’s difficult to know whether employees are following compliance protocols or if fraud is occurring. To combat this, organizations must find a way to monitor their employees and processes closely. When a company has limited visibility into its operations, whistleblowers serve as the eyes and ears for management to ensure compliance with laws and regulations. But with whistleblowing software in place, employees are no longer needed to report fraud or corruption. The software provides real-time data that can be used to detect and prevent fraud, so organizations no longer need to rely on whistleblowers. Organizations should implement compliance software to increase transparency and visibility into their operations. Fraud and Inaccurate ReportsFraud and inaccurate reports can be costly for an organization, especially in regulated industries. It’s estimated that fraud costs the U.S. economy hundreds of billions of dollars each year, and it can be difficult for companies to detect this type of wrongdoing. With a whistleblowing app, organizations can readily eliminate these issues by providing real-time data on operational processes and transactions. Real-time information can be used to identify potential problems early on and prevent them from happening again. This allows organizations to uncover fraud before it gets too far along. Customer information is an example of commonly-compromised company data, even for small businesses. If your CRM tool doesn’t have reliable security to safeguard customer information, your CRM system can be susceptible to fraud. This is why you should choose a crm software for small business with robust security features to help prevent fraud and safeguard customer information. Mishandling of a whistleblower complaintSometimes, companies need to deal with whistleblower complaints. If a whistleblower is accusing an organization of violating the law, it’s important for the business to handle these cases correctly so that it doesn’t face any legal repercussions. Compliance software can help organizations manage whistleblower complaints by providing them with real-time data on how often they receive them, who submitted them, and why. This data can also be used to identify trends in their industry and find ways to prevent violations from occurring again. Whistleblower complaint mishandling can also be prevented by training employees on how to handle these complaints. Compliance software can help with this by providing training materials that can be accessed by all employees to ensure everyone is on the same page. If a whistleblower complaint is submitted, the company can easily search its database for similar complaints and use that information to determine how to handle the case. If a case is not being handled properly or there are any signs of retaliation against an employee who filed a complaint, this information can easily be flagged and reported to human resources or other relevant departments within the organization. A whistleblower suffers retaliationEmployer retaliation is illegal under the Sarbanes-Oxley Act and can lead to serious consequences for the company, including fines of up to $100,000. The legal whistleblowing system protects a whistleblower from retaliation by an employer in the form of losing his or her job, demotion or other adverse action. Retaliation may take various forms, but the most common retaliation is a reduction in pay or hours of work. Under the law, employers are prohibited from taking certain actions against whistleblowers. However, reasons such as the “onlooker effect” and fear of retaliation prevent 75% of employees from reporting corporate fraud. To address any form of retaliation, you can use whistleblowing compliance management software to help you manage the reporting of fraud, waste and abuse. This tool can also enable your employees to anonymously report fraud or misconduct without fear of retaliation. It can also automatically locate relevant information related to the incident and store it in a secure location. With a compliance management software solution, you can protect yourself and your organization from legal action. This is done by monitoring whistleblowers and taking steps to ensure they’re not retaliated against for reporting fraud. Low Employee MoralePoor employee morale can be a huge problem in any organization, and it can have a significant impact on the success of your business. It can lead to disengagement, higher turnover rates, and lower productivity, which costs companies money. A 2021 Gallup survey on employee engagement found that 74% of American workers are actively disengaged in their work. Research also shows that low employee morale can lead to increased absenteeism, higher turnover rates, lower productivity and even fraud. If employees are not happy with their job or management, they will likely not perform well. Workers' morale, productivity, and loyalty to a company can improve if they feel empowered by having an anonymous way to report wrongdoing and know their reports are being acted upon. Compliance management software can also help ensure your employees know what they can and cannot do with respect to whistleblowing, as well as how to handle any issues that may arise. Witnessing fraudulent business activities adversely affects employee morale. To keep people engaged and loyal, you must create an excellent workplace environment. This involves providing extensive financial and non-monetary benefits. Career advancement opportunities like training and development programs are proven efficient in fostering employee engagement. To ensure you use the right LMS solution for these initiatives, it’s best to consult trusted software marketplaces and read unbiased iSpring, Dacedo, or TalentLMS reviews. Image from Unsplash. Whistleblowing compliance management software is an absolute mustWith a whistleblower compliance management system like FaceUp Whistleblowing System, employees can handle their company’s sensitive information without having to worry about leaking it. They can easily report allegations of wrongdoing and violations of company policy instead of keeping them to themselves. The software helps you to manage your company’s data, reduce the risk of security breaches, and make sure that your employees know what they can and cannot do when it comes to whistleblowing. So if you want to keep your company safe from these disasters, then using compliance management software is an excellent idea.