Integrity Risk Management
Integrity Risk Management
An interesting reason to strengthen the integrity system of an organization is that the ethics of an organization and the integrity of its staff is directly related to the sustainable business success of this organization. An organization that invests in transparent relationships with its internal and external stakeholders agrees on mutual responsibilities, expectations and clear goals, is an organization that invests in its entire value and quality.
Efficient development and management of integrity is building sustainable (social/public) trust. This relation of trust plays a crucial role in the reputation of the organization. Once unethical behavior of an employee or unethical behavior of the entire company becomes publicly known, this may have significant negative effects on the reputation of the organization. Cases of unethical behavior and doubts about the integrity of an organization pose a major risk to the reputation and the business performance. A well-developed integrity program encourages ethical conduct, directs and manages and reduces the risk intof reputational damage.
Focus on integrity issues offers the opportunity to improve the working climate in the organization. By having “a listening ear” on the workplace, by showing interest in the ethical dilemmas faced by employees during their work and by providing ways to handle integrity issues correctly, employees get more involved with the organization. This increases motivation and efficiency at work significantly.
A resilient integrity program provides a solid basis to meet changing social and legal requirements. The guidelines for good corporate governance and the strict rules of compliance are a growing burden for the control systems of many organizations. Also, they are a clear sign that organizations are increasingly held accountable and must answer to all kinds of stakeholders.
Social developments, Corporate Governance, Compliance, a positive working environment, a solid reputation, (public) trust and also serious cases of unethical behavior are all matters directly related to the integrity of organizations. Each of these subjects reverts to the way ethics are managed in the organization. How likely is it that an organization in which the ethical behavior of its employees will be closely monitored and evaluated, falls prey to a big fraud case? Is it not true that an organization that bases its business actions on clear ethical principles is seen as reliable? Is a positive and ethical working environment not a condition for employees to perform at their best? Are hot issues as Compliance, Corporate Governance and CSR no mechanisms to make organizations more ethical?
Continuously responding to integrity issues is of great importance for all organizations, regardless of the sector or industry in which they operate. This means that the organization should be active in several crucial areas of operation simultaneously, with focus on business processes and corporate culture.
How can we assist you:
Thorough and in-depth knowledge of each other is the basis for a durable business relationship. In every business transaction – whether you are a buyer, seller or an employer – it is important to examine who your business partners are. Who is the final customer or seller, what do they stand for and do they pose a potential risk to my business or my reputation? Can I trust this employee with company assets? Do I know everything there is to know about the subject of the business transaction?
The IRS specialists have extensive experience in supporting decision-making by providing customers with the right information about companies, directors, organizations, etc. that are involved in a transaction. Thorough and in-depth knowledge of each other is the basis for a durable relationship.
In today’s global economy a positive personal experience, a recommendation by a trusted party or a standard database reference check offer insufficient guarantees. A diligent screening of employees and business partners is a vital element in a compliance program and is in some cases required by regulatory authorities.
Integrity Screening is a “made to measure” process, bases on the risk assessment of the position and/or transaction.
Transparency is the basis for trust. More and more companies and government agencies use integrity screening in the hiring and evaluation of staff. The IRS investigators gladly discuss with you which type of screening is most appropriate for your organization.
Business intelligence is focused on collecting and analyzing information on relevant stakeholders such as customers, suppliers, competitors and interest groups, but also about decision-making processes, market conditions and general economic, technological and cultural trends to generate decision support information (intelligence) to achieve a competitive advantage. The gathering of business intelligence can only be effective if the integrity of the collection process is guaranteed.
By regularly checking on fraud risks so called “weak spots” in your organization can be identified in both working procedures and corporate culture so they can be mitigated. Moreover, the “integrity awareness” of your employees will increase by actively involving them in the scan and in implementing improvements.
IRS has developed a working plan for conducting out a risk fraud-scan. In cooperation with your staff, the fraud risks in your industry or sector will be identified. Then the processes within your organization-will be checked on indicators of these risks.
IRS will invite your auditors to participate closely in this process so they are able to repeat the risk of fraud scan independently.
Investing in preventing fraud pays off. In an Anti-Fraud Program, the actions taken to prevent and to identify fraud coordinated. A systematic approach leads to efficient and effective use of capacity. As a starting point the vulnerable functions and sensitive processes within the organization are mapped out. Next, specific activities are undertaken to reduce the vulnerability of these functions and processes.
A well-functioning whistleblower program is important to your organization, as it promotes the integrity awareness of employees, enables the organization to detect incidents in an early stage and prevents employees to report to outsiders like law enforcement or the media.
IRS supports your organization in preparing a whistleblower program that fits the organization and that is known and trusted by your employees.
Preventive Research Competition
Verification of compliance with Legislation on Competition makes sense! Violations can lead to hefty fines, up to 10% of global turnover. In addition, personal fines against “de facto managers” can be imposed.
The national regulator, the Authority for Consumers and Markets (ACM) and the European regulator, the European Commission, apply their investigative capacities more and more. Many sectors are startled by (un) announced visits of these regulators.
IRS has specialists with broad experience in the area of competition, both from a supervisors perspective as well as the business point of view. They have developed a method which uses digital forensic tools which provide insight into any (potential) violation. Real violations can be detected early and future violations can be prevented. We can assist you to become and stay compliant.
Even if your company is faced with a (un) announced company visit by a supervisory body and they have copied digital data from your automated environment, you can contact the IRS. We can provide insight into the copied digital data so your attorney is capable to develop an effective defense strategy.
Pre-emptive Anti-Money Laundering Audit
In money laundering financial transactions are carried out to make criminal money appear legal in the financial system. After capital of criminal origin is introduced into the legal financial system (Placement), financial transactions take place in order to disguise the origin (Layering). Then the capital will be integrated into the legal economy (Integration) and the “laundering” is complete. A Pre-emptive Anti-Money Laundering Audit analyses the risks of your organization (unknowingly and unintentionally) getting involved in money laundering transactions.
IRS has extensive experience in conducting anti-money laundering audits and gladly supports your organization in identifying risks and in developing counter measures.
Pre-emptive Audit on Compliance with FCPA & UKPA
The “Foreign Corrupt Practices Act (FCPA)” and the “United Kingdom Bribery Act (UKBA)” are pieces of American and British legislation aimed at combating bribery and corruption. In addition to the corrective action, both laws impose requirements on internal preventive procedures. If your organization or your subcontractors have business connection to the United States or the United Kingdom, then you too can fall under the scope of this legislation.
IRS supports your organization to create an FCPA / UKBA Compliance Program or by evaluating your existing programs.
The specialists of IR}S can assist you to be compliant with the new Act on Reporting Data breaches. The use and storage of personal data within your organization and processes is mapped out so you comply with the new regulations. You will also know exactly what data you have lost in the event of a data breach.
The obligation to report data breaches
Since January 1, 2016 companies are obligated to report data leaks. Also, the law requires organizations to register where and for what purpose they record and use information that can be traced back to individuals.
What is a data leak?
A data breach involves unauthorized access to or destruction, modification or release of personal data in an organization.
What does the obligation to report mean?
The obligation to report means that an organization must immediately report a data breach to the Authority for Personal Data directly after discovery. In some cases, the organization must also notify the data breach to the individuals affected.
Do you know what data is available within your organization?
Many organizations have no or an incomplete understanding of the existing personal data within the organization. This is an increased risk, because in case of an actual data breach, you are not fully aware of what personal information is leaked.
How can IR}S support you?
The specialists of IR}S can assist you to identify the data within your organization. This allows you to comply with all the requirements for the registration of the data, so you know exactly what data is compromised in the event of a data leak.