Challenge: Proactive Approach to Risk Reveals Need for Better Reporting System
As part of the highly-regulated banking industry, Fulton Financial Corporation spent years developing strong financial controls to identify and resolve potential risks early. Although Fulton was not exposed to as much risk as some larger financial organizations, the company still wanted to take any necessary precautions to protect its human and capital resources.
To do that and to meet federal requirements, the company initially used an internal system. According to Jerry Furman, Senior Vice President and Chief Auditor at Fulton, that approach did not instill confidence among employees, had limited functionality and was difficult to staff. He spearheaded the charge to take a more proactive approach to risk.
Fulton initially used an internal system. As Furman pointed out however, that approach did not instill confidence among employees, had limited functionality, and was difficult to staff. He knew there could be a more efficient solution. Fulton needed a better system that would increase employee trust, show insight into trends that indicate risk issues and make it easy for departments to work together to address concerns.
Solution: EthicsPoint® Offers Easy-to-Use Reporting System
“This economy has a major impact on financial organizations. People are under increased pressure and we are looking carefully for fraud exposures. Like many organizations, we do not expect to find fraud. However, there is always a risk and NAVEX Global helps us identify any issues so we can work quickly and effectively to address them.” - Jerry Furman, Senior Vice President and Chief Auditor
After conducting research, Furman helped Fulton select EthicsPoint® to provide employees with a safe, anonymous way to report any suspected fraud or misconduct. “This economy has a major impact on financial organizations. People are under increased pressure and we are looking carefully for fraud exposures. Like many organizations, we do not expect to find fraud. However, there is always a risk and EthicsPoint helps us identify any issues so we can work quickly and effectively to address them,” said Furman.
Fulton worked with NAVEX Global’s Implementation team to configure its EthicsPoint system. The company modified aspects of the data intake and online landing page to make sure that everything was very clear and easy to use. “EthicsPoint is a very efficient system. It was easy to set up, and it is easy to create reports, track cases and communicate in the system,” said Furman.
Data from EthicsPoint is sorted into categories which allows Fulton to analyze trends at each of its subsidiaries. When a report is submitted, three departments are automatically notified: Legal, Human Resources, and Internal Audit. Furman works with the other departments to decide who should take the lead in resolving the report. “We have a good working relationship across departments. Fraud allegations can impact everybody, and we all want to make sure they are resolved quickly and appropriately,” Furman explained. That setup also helps keep everybody accountable with a system of checks and balances. For example, if a person in one department were to be implicated in a report, only the other two departments would be notified.
Results: Fulton Boosts Employee Confidence and Mitigates Risk
The increased visibility into what’s going on in the company gives Fulton a head start when it comes to identifying risk. “Organizations that meet minimum requirements get minimal information. EthicsPoint gives us enough data to proactively identify risk issues before they become significant,” Fulton stated.
Furman contends that EthicsPoint pays for itself by helping minimize the potential costs of undetected fraud. In addition, there is tremendous value in sensing employees’ confidence that they have a confidential resource to report issues and see them resolved.
“In today’s world, a company’s ability to efficiently deliver products and services depends on having good people in place with processes to follow,” said Furman. “EthicsPoint helps identify fraud exposure and improve employee confidence.”
About NAVEX Global, Inc.
NAVEX Global is the worldwide leader in integrated risk and compliance management software and services. Trusted by more than 14,500 customers, our solutions help organizations manage risk, address complex regulatory compliance requirements and foster an ethical, highly productive workplace culture.