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CEB RiskClarity

Your Misconduct Mitigation May Not Be as Effective as You Think

The truth is, about one in four employees observed misconduct or were uncertain if they observed misconduct last year. Of those observations, 40% are not reported for mitigation while only 17% will find the compliance and ethics office.

That's a frightening reality when considering the costs to your organization:

  • $11.5M for a single FCPA violation
  • $5.4M for a single data privacy breach or $188 per record lost
  • 5% of annual revenue for a single instance of fraud

Misconduct is happening, much of it goes unreported, and it is too costly to ignore. Hotlines and policies are clearly not working. So why don't employees report misconduct?

Two primary reasons: Fear of retaliation and inaction by the company.

CEB has created RiskClarity, a web-based risk assessment service that promotes comfort speaking up and creates channels for enforcement to help improve the integrity of your corporate culture.