Why Implement a Whistleblower Policy?
All organizations, including universities, governmental entities, and nonprofits, should consider implementing whistleblowing provisions. Consider these important facts from the Association of Certified Fraud Examiners’ 2006 “Report to the Nation on Occupational Fraud and Abus”: • More than $600 billion in annual losses is attributed to fraud. • Anonymous reporting mechanisms are the antifraud measure with the greatest impact on reducing losses: Companies with anonymous reporting mechanisms reported median losses of $100,000, while those without reported median losses of $200,000. • Tips from employees, customers, and vendors and anonymous tips account for: • 34% of the detection of all fraudulent activity; • 34% of the detection of fraudulent activity for not-for-profit organizations; • 39.7% of the detection of fraudulent activity for government agencies; and • 48% of the detection of owner/executive fraud schemes. Reporting on internal controls was recommended to the corporate commu
