Fraud and corruption causes serious distress to many organizations every year. If these cases go undetected, the detrimental effects increase over time and could eventually become devastating for an organization. In addition to financial damage, there is often more difficult to assess non-financial damage where stakeholders' confidence in the business deteriorats. Another common effect from ongoing fraud and corruption inside an organization, or from lengthy internal investigations, is a reduction in workplace efficiency. This often is a result of increased anxiety and stress for employees.
Surveys show that up to 40% of internal fraud cases have been revealed due to information received from whistleblowers, thus making whistleblowing one of the most effective channels for an organization to detect and stop ongoing fraud; reducing the damage faster. For this reason, more and more organizations are setting up whistleblower channels to better enable this type of information to be captured. These channels also comply with generally accepted models for risk management around fraud and corruption; preventing and detecting fraud.
In December 2021, the EU directive on whistleblowers will become Swedish law, replacing the existing Swedish whistleblower law. The new law requires that all organizations with at least 50 employees, or municipalities with at least 10,000 inhabitants, must establish secure reporting channels for whistleblowers where their identities can be protected.
The whistleblower directive requires a reporting system that can handle both written and oral notifications safely. You can read more about the upcoming law here.
Whistleblower reports often contain sensitive information about people and about the organization. For these reasons, information security must be maintained at every stage of the whistleblower management process, and in accordance with, for example, GDPR and the upcoming legislation on whistleblower protection. This applies both to security in IT systems and in the manual information management processes.
KPMG Forensics is a specialist unit with 15 years’ experience in investigations of fraud and misconduct. Our team includes a large number of specialists, including consultants with backgrounds from the Police force and National Anti-Corruption Unit.
With the help of our deep knowledge and wide range of, we have developed a comprehensive service offering that meets legislative requirements and provides effective whistleblower management. This includes:
Our investigations are conducted according to the same principles used by law enforcement agencies and our services are scalable based on the specific conditions that apply to your organization.
We at KPMG offer you the support of our experienced specialists to handle incoming cases to quickly obtain an initial assessment of incoming cases.
We provide you feedback and relevant advice on next steps.
We help you and your organization comply with the legal requirements in all stages of the process, but above all in handling incoming cases in an effective and legal way to protect your organization.