What should be done to prevent information leaks?Introduction of causes, cases, and countermeasures after leakage
2023/ 8/ 7
What is an internal fraud investigation? We introduce investigations and examples that lead to prevention, common fraud methods, and countermeasures
2023/ 8/ 7
The whistleblower system (whistleblower system) is important for deterring and detecting internal improprieties by employees, such as embezzlement and information leaks.In this article, we will explain the outline of the whistleblowing system, its benefits, points to note, and the necessary responses and work contents for companies and persons in charge.We also introduce a forensic investigation when conducting an investigation when receiving a whistleblowing.
What is the whistleblower system (whistleblower system)?
The whistle-blowing system is a system that establishes a reporting channel exclusively for whistle-blowing by establishing a whistle-blowing contact point for executives and employees, etc., in order to encourage reporting of illegal activities within the company.If an illegal act by an employee comes to light, the company will be subject to criminal penalties and administrative sanctions, as well as a loss of social reputation.The introduction of a whistle-blowing system is also effective from the perspective of avoiding risks by discovering fraud and its signs within the company and preventing it.
Revisions to the Whistleblower Protection Act make it mandatory to develop a whistleblower system
The “Whistleblower Protection Act” was revised (enforced in June 2022), making it mandatory for companies with more than 6 employees to establish a whistleblowing system.This whistleblower protection law includes changes to various rules to strengthen the protection of whistleblowers, in addition to the development of systems at companies.The purpose of this is to make it easier for companies and other organizations to find and correct improprieties within their own companies, and to ensure that whistleblowers can report with peace of mind and are protected.
As we hear and see in the news, there is no end to corporate scandals.In the current situation where such scandals have become a social problem, companies are required to discover scandals such as fraud within their own companies and correct them before the damage spreads as much as possible.From here, we will explain the introduction of the internal reporting system and the maintenance of the system in order.
Benefits of introducing a whistleblowing system
If the number of employees is 300 or less, the introduction of a whistleblower system is not mandatory, but rather an obligation to make an effort, but there are many benefits to introducing it even in small companies.
Internal fraud can be deterred or detected early
The bigger the scale of internal fraud, the more difficult it is to deal with and the more serious the impact on the company.If there is a whistleblower system in the company, it will be a deterrent to fraud, and it may lead to early detection and reduce damage.
Prevents reporting to external parties such as administrative agencies
If an employee who discovers an illegal act immediately reports it to an external administrative agency or the mass media, they will be forced to respond before the company's policies and opinions are determined, and there is a risk that the response method will be erroneous. increase.Inappropriate responses can lead to a significant drop in social evaluation.If there is a whistle-blowing system within the company, even in the unlikely event that an illegal act occurs, it will be possible to firmly determine the company's policy and opinion, and the possibility of taking an appropriate response will increase.
Leads to social evaluation and credibility
The risk of fraud cannot be completely eliminated.Assuming that it will happen, it is necessary to build a flow to discover and solve fraud by internal reporting system.This will lead to a higher social evaluation, which will lead to the acquisition of evaluation and trust from external parties such as business partners.
Points to note when introducing a whistleblowing system
We will explain the disadvantages and points to note when introducing a whistleblowing system into the company.
Time consuming to implement new
When introducing a new whistle-blowing system, it takes time and effort to first understand the situation of the company's organization, and after making internal settlements, create a whistle-blowing system and internal regulations that match the actual situation, and disseminate them within the company. It takesYou may also need to seek help from a lawyer who is familiar with the whistleblower system.
In-house operational burden
Not only the introduction but also the operation will be burdened.A person in charge will be assigned to deal with the problem, but if the rules for reporting are not properly established, a large number of trivial matters may be reported, which may put pressure on operations and costs.When introducing it, it is necessary to carefully design the system based on the actual situation of the company.
What the company should prepare for the introduction of the whistleblowing system
When a company introduces a whistleblower system, we will explain the process that requires a legal representative to respond.
Decide who to contact and who will be in charge
When introducing a whistleblower system, it is necessary to appoint a person in charge to respond.Legally, this person is called a "whistleblowing worker."A legal representative would be a good choice given their knowledge and independence within the company.It does not have to be full-time, and there is no problem if it is concurrent with other duties.
Create internal rules for internal reporting system
Once you have decided on the point of contact and person in charge, design a whistleblowing system and create internal rules.After designing a system that matches the actual situation of the company, such as what to do with the response flow when a report is received, it will be incorporated into internal regulations.
Conduct internal education and dissemination of the whistleblowing system
In order for the whistleblowing system to function effectively, it is necessary to raise awareness within the company.It is necessary to carry out training and education on a regular basis to disseminate them.
Create confidentiality rules and mechanisms
Confidentiality is important for the internal reporting system so that employees can use the system with peace of mind.It is essential to keep the fact that a report has been made confidential, to ensure that identifiable information is only available to the minimum number of people necessary, and to take measures to prevent attempts to identify it. will be
Establish a contact point outside the company, such as a law firm
In order to conduct investigations from an objective standpoint, whistleblowing personnel must be independent from other officers and employees, but there are limits.It is effective to set up an external contact point in addition to the internal point of contact.Having more options will encourage you to report.
Flow of response when receiving a report from an employee
If an internal report actually occurs, what kind of flow should be used to respond?
・STEP1 Immediately respond to the employee who made the report
Respond promptly to the employee who made the report.Tell them that you have received the report, that they will investigate, that confidentiality will be protected, and that the whistleblower will not be treated unfavorably.If left unchecked, the employee may think they have been ignored and report it to external government agencies or the media.In order to gain trust as a company, a prompt initial response is important.
・STEP2 Investigate reported misconduct
Investigate whether the reported misconduct is really taking place within the company, to what extent and scope it has progressed, who is involved, and what is the cause.Specialized legal knowledge is often required, so design a system that allows you to use the knowledge of legal experts such as corporate lawyers.
・STEP3 Take corrective action promptly if there is any misconduct
If any misconduct is discovered as a result of the investigation, we will promptly take corrective action.It is important to do so without hesitation, as it will lead to the sound development of the company.After that, we monitor whether the corrective actions are working properly and whether the wrongdoing continues.
・STEP4 Inform the employee who made the whistleblower about the investigation results
Share the results of the investigation with the reporting employee.Even if no misconduct is found, do not forget to contact and explain to the employee who reported it.It is important to make people feel that the hotline is trustworthy and that they can make reports with peace of mind.
[Related article] What is an internal fraud investigation?Introducing common fraud methods, countermeasures, and investigation cases
Utilization of “forensic investigation” is effective for investigation to support whistleblowing
A forensic investigation is an effective way to investigate after receiving a whistleblowing.Let me know what kind of research you do.
What is a forensic investigation?
A forensic investigation is an investigation that collects and analyzes information on incidents and accidents to reveal evidence of crimes and fraud.In addition to carefully examining the contents of the whistleblowing, by investigating the cause, measures to prevent recurrence can be put in place. I can.
Recently, forensic investigation by AI
In today's forensic investigations that deal with huge amounts of data, the use of AI (artificial intelligence) can be said to be an essential tool.By having the AI learn the judgment criteria by having an expert look at a small number of sample files, it sorts a large amount of data into those that are likely to be related and those that are not.The simple data sorting work that must be done at the beginning of a survey can be done in a short time with a small number of people, so not only can the survey be made more efficient, but also higher accuracy can be achieved by concentrating the resources of experts.
Forensic investigation is recommended to consult with a specialized investigation company
Forensic investigations should be outsourced to an investigative company rather than conducted in-house.
Even if there is a whistleblowing that "that person is cheating", it does not mean that we have clear evidence.It may have been deliberately removed.When the number of terminals to be investigated reaches several hundred, it is impossible to handle it with in-house resources.By utilizing the specialized software and AI of research companies, we can conduct research reliably, efficiently, and on a budget suitable for scale.
[Related article] What is a forensic investigation?Commentary on necessary cases, points to note, and examples
"FRONTEO" realizes large-scale and short-term forensic investigation by utilizing AI developed in-house
Since its founding in 2003, FRONTEO has been working to solve the problems of various companies as a pioneer of forensic investigations in Japan.We have an established reputation for our technology and know-how based on outstanding experience.
Utilizing our in-house developed AI engine KIBIT, we have achieved significant labor saving and cost reduction during document review. By combining our experience in dealing with projects and our in-house AI engine, we have achieved high accuracy and efficiency that other companies cannot. is realized.
We have data centers in Japan, North America, South Korea, and Taiwan, and we have a system that allows us to store data without taking it out of the country, and we have perfect security.We provide seamless services to our clients' headquarters, local subsidiaries, and law firms.Fast support with global operations.
