Enterprise Integrity Risk

Integrated approach, better resultsWhat’s needed now is an integrated approach to predicting, detecting, and preventing wrongdoing related to fraud and misconduct. Deloitte Risk and Financial Advisory’s Enterprise Integrity Risk (EIR) solution does just that. We deliver the methodologies, processes, and technologies you need to identify, manage, and mitigate fraud and misconduct risk. Fraud and misconduct—or integrity risk—costs companies $6.3B annually.1 Yet despite increasing legal and regulatory scrutiny, instances of fraud and misconduct are on the rise. In response, some organizations categorize integrity risk in isolation while others take a reactive stance. But these approaches severely limit an organization’s ability to effectively mitigate integrity risk and result in gaps. These gaps enable the drivers of integrity risk to flourish, resulting in greater exposure and vulnerability for the organization. Without an effective integrity risk management program, your organization may be limited to treating the symptoms of fraud and misconduct without addressing the disease.The impact of financial crimeIn 2016, the Securities and Exchange Commission and the Department of Justice:Filed 868 enforcement actions covering a range of misconductBrought actions against 30 businesses for violating the Foreign Corrupt Practices Act (FCPA)Obtained orders totaling over $4 billion in disgorgement and penaltiesSee the threat before it strikesUsing innovative analytics to mitigate fraud and riskOur EIR solution features cutting-edge technology that enables your organization’s business functions to trim down the gaps related to risk mitigation and fraud detection.As a result, you’ll gain a full view of risk and compliance, increase cross-functional cooperation, and become more predictive and proactive.As used in this publication, “Deloitte Risk and Financial Advisory” means Deloitte & Touche LLP, which provides audit and risk advisory services; Deloitte Financial Advisory Services LLP, which provides forensic, dispute, and other consulting services; and its affiliate, Deloitte Transactions and Business Analytics LLP, which provides a wide range of advisory and analytics services. These entities are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.Source: FCPA Corporate Enforcement Policy, available at https://www.justice.gov/criminal-fraud/file/838416/download.1 Association of Certified Fraud Examiners (ACFE) 2016 Global Fraud Study, Report to the Nations on Occupational Fraud and Abuse, ACFE, Inc., http://www.acfe.com/rttn2016/docs/Staggering-Cost-of-Fraud- infographic.pdf Steps to successWe recognize integrity risk can result from isolated and limited responses, so we focus on transforming your disparate activities and data into actionable insights. We leverage a five-phase methodology tailored to meet the specific gaps within your organization:1. Assess: To gauge the current state of your enterprise integrity risk program and select areas of focus2. Understand: To evaluate your organization’s controls, systems, and data for each focus area3. Compile: To create a cross-functional profile of your organization’s risks and controls4. Deploy: To implement analytics that proactively detect enterprise integrity risks across your organization to generate key insights and observations5. Design: To create enhancements and continuous process improvementsWith this approach, we take a closer look at your organization’s existing data to proactively identify exposure gaps and vulnerabilities to risks. Then we address the gaps to decrease your integrity risk over time, while concurrently positioning your organization for transparency and improved resilience. •Increase coordination: Using holistic strategies and reliance models fueled by data, we work with your team to align risk management functions across the enterprise. •Gain a full view of risk and compliance: We assist your organization as it moves from maintaining separate lines of defense to integrating efforts and proactively managing risk. •Reduce liability: With our proactive approach, your organization can reduce Making an impact that mattersWith Deloitte’s EIR solution, organizations are positioned to:Enterprise integrity risk driversWe begin every engagement by looking at five drivers that impact enterprise integrity risk:A complex, disconnected or “growth at all costs” business modelA “growth at all costs business model” typically contains inherent conduct vulnerabilities. Early warning signs are sometimes overlooked, patterns of poor behavior are addressed in isolation, and a pattern of failing to consistently escalate incidents of misconduct.Manual and complicated processes and proceduresBurdensome compliance may interfere with business agility. It’s l