Integrity and the moral compass
November 7, 2023Partnership Announcement – Cyclopedic Consulting
October 16, 2024
Overview
Managing conduct risk (workplace misconduct) is an essential element of good governance and a strategic priority for all organisations today. The current economic, regulatory, social climate, coupled with increasing stakeholder expectations has pushed conduct risk compliance to the forefront of corporate priorities.
Although conduct risk is often considered as a non-financial risk, the financial cost of a workplace misconduct event can be very significant, including losses from fraud, fines, and damage to brand and reputation.
Therefore, boards and senior executives are being called upon to respond to increasing pressure and scrutiny from stakeholders to provide tangible evidence that they are effectively managing conduct risk compliance.
Every organisation, regardless of its size, industry or maturity is exposed to conduct risks such as fraud, corruption, conflicts of interest and other workplace misconduct events.
Proactively managing conduct risk is the only way for an organisation to ensure that it is protecting its people, reputation, and bottom line.
How to manage conduct risk – best practice
Many business initiatives to manage conduct risk are manual, ad hoc, and not centralised. The critical elements such as policy management and attestation, managing workplace certifications and managing workplace declarations and incidents are difficult to monitor collectively to identify key areas requiring immediate attention.
The multiple elements and detailed employee engagement data also make it difficult to assess the overall effectiveness of any conduct risk management initiatives.
The most effective way to manage these issues is to use a centralised cloud-based platform that incorporates all the key elements required to manage conduct risk and provides engagement with all employees and contractors for their key employment, risk and compliance obligations.
Having a centralised cloud-based platform allows organisations to use best practices for policy management and attestation, workplace certification compliance, and management of declarations and incidents, as well as managing employee and contactor engagement.
The software platform also needs to include real-time dashboards displaying a detailed view of how conduct risk is being managed across the business. The dashboards need to highlight key data to allow organisations to quickly identify key reporting trends, proactively manage non-compliance, as well as provide a detailed audit trail for analysis and incident investigation.
Conduct risk best practice also requires an organisation to have a high level comprehensive assessment of the organisation’s conduct risk profile to help understand potential risks and vulnerabilities related to the integrity of their operations, processes, and activities. This can be used to evaluate and quantify the likelihood and impact of integrity risks, such as corruption, fraud, unethical behaviour, or non-compliance with policies and procedures.
Corethix – using best practices for managing conduct risk
Corethix addresses the challenges of managing conduct risk by providing a centralised cloud-based platform that incorporates all the key modules required to manage conduct risk and engages with all employees and contractors for their key employment, risk and compliance obligations.
Corethix uses best practices for:
- policy management and attestation.
- workplace certification compliance.
- management of declarations and incidents.
- creating and managing workplace surveys.
- managing employee and contactor engagement.
Corethix also includes real-time dashboards displaying a holistic view of how conduct risk is being managed across an organisation. The dashboards highlight detailed data to allow administrators to quickly identify key reporting trends, proactively manage non-compliance, as well as provide a detailed audit trail for analysis and incident investigation.
Corethix and the Integrity Risk Index (IRI)™
Corethix also includes a unique feature called the Integrity Risk Index (IRI) which has been designed to provide a high level overview of the performance of an organisation’s conduct risk program. It does this by calculating a weekly Integrity Risk Index (IRI) score based on employee and contractor engagement with the platform. The IRI algorithm is based on the integrity categories that have configured, and the modules that have been associated with each integrity category.
The Integrity Risk Index (IRI) is for businesses to simply, and accurately, know the effectiveness of their conduct risk management initiatives.
By analysing the integrity risk index, organisations can identify areas of weakness or excessive risk exposure and develop strategies to strengthen their conduct risk management program. It also helps in designing and implementing effective compliance programs, internal controls, policies, and surveys to mitigate conduct risks and foster a culture of ethical behaviour within the organisation.
The Integrity Risk Index (IRI) is configured within Corethix by each organisation based on their industry type and their focus on specific workplace compliance requirements.
The Integrity Risk Index (IRI) dashboard
The Integrity Risk Index (IRI) dashboard provides an IRI score trend graph, a prioritised list of suggested improvements plus a data table highlighting any issues relating to each of the configured integrity categories and associated modules.
The IRI score trend graph is updated weekly and provides a high level assessment of the current conduct risk program.
- The IRI dashboard provides prioritised suggestions for improving the Integrity Risk Index (IRI) score by using diagnostic analysis algorithms built into the Corethix platform software.
- The data table identifies any issues that need to be investigated and links identified issues to the appropriate module dashboard for further analysis.
The Integrity risk Index (IRI) dashboard provides a single measure and trend of the performance of an organisation’s conduct risk program with prioritised suggestions for improvement.
Corethix – a comprehensive best practice solution
Employee misconduct is no longer an accepted part of doing business and Boards need to demonstrate what they are doing to improve conduct risk compliance and culture. There is now a strategic imperative for conduct risk management.
This has created an increasing requirement for organisations to adopt more comprehensive solutions that provide an integrated collection of capabilities that enable an organisation to reliably achieve objectives, address uncertainty and act with integrity.
The combination of Corethix with the Integrity Risk Index™ provides a comprehensive best practice solution for any size organisation to proactively manage conduct risk.
Proactively managing conduct risk is the only way for an organisation to ensure that it is protecting its people, reputation, and bottom line.
If you would like to know more about Corethix and the Integrity Risk Index (IRI) then please contact us