Boosting Your Three Line Defence To Fight Financial Crime
The fight against #financialcrime crime remains an ongoing challenge as technology and regulatory landscapes evolve. Organisations spend significant amounts of effort and cost to ensure policies and screening processes meet regulatory needs and that controls are effective in generating alerts where concerns are identified.
Whistleblowing is one of the most cost-effective, yet under-utilised and misunderstood components of an organisations three line model. Where there is a large reliance on technology to generate alerts which in most instances have a high false positive ratio, human intelligence can have substantiation rates of 30-40% and identify wrongdoing much quicker than an algorithm.?
Aligning your whistleblowing programme to the three line defence model can deliver significant benefits operationally and reputationally. Effective programmes deliver tangible returns on investments.
Well trained staff and management operating as your?first line of defence?can be quick to identify wrongdoing before it occurs or as it is happening, preventing the impact and associated costs. It delivers further value where staff can raise concerns over potential vulnerabilities that could or are being exploited against other policies from #kyc and #edd through to #bribery and #corruption that can lead to fixes being implemented long before the control weaknesses are (potentially) identified by internal reviews, or worse, costly and reputationally damaging breaches.
Your second?line of defence, the governing body, promote, encourage, and enable staff, management, and stakeholders to report concerns that ensure an effective whistleblowing programme remains visible and safe. With many firms now exposed to international laws and regulations such as the EU whistleblowing directive, the U.S. DOJ and other government programmes where burden of proof can sit with the organisation to show ‘reasonable steps’ have been taken to prevent wrongdoing, these programmes protect both the organisation, it’s governing body and of course the whistleblowers and other stakeholders.
The?third line of defence, #internalaudit when reviewing a whistleblowing programme, can identify other vulnerabilities when the check aligns to #iso37002 best practice for whistleblowing. Additional value is derived where operational controls are reviewed that can identify vulnerabilities in the organisation extending beyond the #whistleblowing programme such as system access control vulnerabilities and joiner, mover, leaver process weaknesses.
The WislPort team were leaders in the development of ISO37002, the international standard for whistleblowing management systems and our leadership team have been involved in the development of laws and regulations whilst supporting large and small organisations to benefit from the protection that whistleblowing delivers. Our packages deliver all the modules your organisation needs to align a whistleblowing programme to your three line defense model including a comprehensive audit tool that is simple, comprehensive, and adaptable for organisations of all sizes and sectors.
For more information contact us at?info.wislport.com