Implementation of a Whistleblowing Framework and System
It is mandatory, both in Romania and the EU, for companies with over 50 employees to implement a whistleblowing framework and system.
In addition to ensuring compliance with EU Directive 2019/1937 and Romanian Law 361/2022, a robust whistleblowing framework is an integral part of a sustainability strategy for all companies and offers multiple benefits, such as:
- Helps organizations combat fraud by enabling quicker detection of ongoing fraud before losses multiply. According to the 2022 Report to the Nations published by the Association of Certified Fraud Examiners (ACFE), the average organization loses 5% of its annual revenue to fraud each year, causing a median loss of 117,000 USD before being detected. Whistleblowing systems can help detect fraud and stop losses sooner rather than later.
- Reduces the risk of reputational damage, as issues are tackled internally within the organization, discreetly, and under full confidentiality.
- Reduces the risk of legal persecution since the risk of Directors’ Liability is greatly minimized if a proper whistleblowing framework is implemented.
- Reduces financial losses as early detection can reduce the financial burden on the company before regulatory, legal, and business downtime costs and other settlements are added.
- Improves the organization’s Environmental-Social-Governance (ESG) rating. Speak-Up Culture and whistleblowing systems help increase the ESG rating, which ensures compliance with the European Union’s Corporate Sustainability Reporting Directive (CSRD) no. 2022/2464, Romanian Ministry of Finance Order no. 1938/2016 and 3456/2018, risk management, and shows a better profile in front of financial institutions.
- Makes the company healthier, as more reports indicate a culture of trust by employees in management and reflect a greater flow of information about problems.
We help organizations by implementing all the necessary components of an effective and robust whistleblowing framework and system, including:
- Whistleblowing policy and customized procedures that are easy to understand, implement, and comply with by the entire population of employees, contractors, and other external stakeholders.
- Whistleblowing system, through our partnership with the world’s fastest-growing whistleblowing platform, Whistleblower Software (https://whistleblowersoftware.com/), where whistleblowers can submit written or verbal reports, in full anonymity or confidentiality.
- Whistleblowing Officer outsourcing, where we take over the entire process of handling and managing whistleblower reports, their investigation, escalation, and resolution while ensuring the level of independence, objectivity, security, confidentiality, and transparency required by the Law. Alternatively, for those organizations that would prefer to in-source the Whistleblowing Officer function, we can offer intensive training and preparation programs.
- Training for all employee levels, starting with awareness training for the general employee population followed by specialized training for designated persons, case managers, and those in charge of governance.
TGS Romania has a very strong team with valuable experience in investigating fraud and economic crime, as well as resolving complex finance, accounting, and fiscal matters. We can make sure that the implementation process is very quick and cost-effective, and the result is an efficient framework and system that genuinely helps your organization detect fraud and other irregularities, manage risks, and stop losses early.
For more details, please refer to our whistleblower presentations, flyers, webinars, and other informative materials, via the links below, or you can directly contact Kemal Özmen, Assurance and Risk Advisory Director (email@example.com), for more information.