Manage corporate misconduct with forensic investigators

Corporate misconduct, such as fraud or harassment, is a major challenge for companies in Switzerland. Approximately 20% of them report losses of more than EUR 10,000 per year due to employee misconduct. This can result in financial loss, legal complications, and reputational damage, as well as damaging relationships with customers, investors, and employees.

You need to address these issues to ensure business continuity, comply with Swiss legal requirements, and protect your company's reputation. Proactively managing misconduct not only reduces financial losses but also helps to create a productive and trustworthy work environment.

At KPMG Switzerland, we offer a full range of forensic review services to address various types of corporate misconduct. With a strong track record in forensic services, risk management, and compliance, KPMG can help identify and address potential misconduct before it escalates.

Cédric Biedermann

Director, Forensic Western Switzerland

KPMG Switzerland

Legal responsibilities of Swiss employers

Swiss employment law requires employers to investigate any allegations that may violate an individual's rights. This underlines the need for thorough and fair investigations.

These are essential to comply with the law and maintain ethical standards in accordance with Swiss regulations. Fulfilling these legal obligations will help avoid potential legal problems for the company.

Challenges of internal investigations

Internal investigations can be faster and more cost-effective, but they come with challenges:

Limited resources: the HR team may not have the right skills or tools to conduct a full investigation. This can lead to details being overlooked.

Perceived bias: employees may perceive bias in internal investigations. This is especially true if the team has a close relationship with those being investigated.

Benefits of hiring outside forensic experts

There are several benefits to hiring outside forensic experts:

Impartiality

External experts provide an unbiased perspective, making their findings reliable and free from internal factors or bias.
Specialized expertise

Outside investigators have the forensic science skills needed for complex cases. They ensure thorough evidence gathering.
Compliance with Swiss laws and regulations

They are familiar with local laws and ensure that investigations comply with Swiss legal standards. This reduces the risk of legal issues.
Criminal investigations

External experts are able to handle criminal investigations, providing support in cases that may involve serious violations of the law.

Case study

Successful external investigation

A Swiss company facing allegations of financial fraud hired external forensic experts.

While investigating, the experts identified the perpetrators and helped the company take legal action.

This restored trust with stakeholders and demonstrated the company's commitment to ethical behavior.

Corporate culture and fraud prevention

A strong corporate culture helps prevent fraud. Swiss companies should focus on:

Transparency: establish clear lines of communication and investigative reporting channels for witness statements.

Accountability: hold all employees, including managers, accountable for any fraudulent activity and take appropriate disciplinary action when necessary.

Ethics training: regularly train everyone in the work environment on company values and ethical standards.

A strong ethical foundation reduces misconduct cases and builds trust among employees. This enhances the company's reputation and supports long-term success.

Legal compliance in investigations

Swiss companies must comply with strict statutory and legal requirements when conducting employee investigations. Key factors in ensuring investigation compliance include:

Data privacy: ensure compliance with data protection laws such as the Federal Act on Data Protection and/or the EU's GDPR.

Employee rights: respect employee privacy and rights during investigations.

Documentation: maintain clear, accurate records to support any legal action.

Companies need to work closely with legal counsel to ensure that the investigation meets legal standards. This will help avoid risks and penalties.

The role of investigation management tools

Technology really improves the entire process, with an investigative case management system helping companies with:

Tracking progress: track every step of the examination.

Improving collaboration: improve the communication between all parties involved.

Maintaining records: securely store evidence for future use.

These tools increase efficiency and create a more organized approach to examinations. They minimize human error and speed up the process.

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Investigations

Respond swiftly to fraud, misconduct, and financial crimes, ensuring credible outcomes. Uncover the truth with our comprehensive forensic investigation services.

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Fraud management plan and ongoing strategies

A strong fraud management plan is critical to maintaining long-term integrity. Key strategies include:

Whistleblower mechanisms: provide secure and anonymous ways for employees to report unethical behavior.

Continuous auditing: regularly review processes and transactions to identify problems early.

Fraud risk assessments: regularly assess risks to prevent problems before they occur.

By taking these steps, such as hiring a fraud investigator, Swiss companies can reduce the risk of misconduct. This strengthens their commitment to ethics and ensures long-term sustainability.

Developing a proactive misconduct detection system

Swiss companies can strengthen their corporate culture and reduce misconduct by implementing a proactive detection system. Key steps include:

Monitoring tools

Use audits and data analytics to identify potential misconduct early.
Behavioral reviews

Regularly assess employee behavior to identify red flags.
Clear reporting systems

Establish easy and confidential channels for employees to report unethical behavior.
Employee training

Educate employees about ethical standards and the importance of reporting misconduct.

A proactive misconduct detection system reduces risk, protects company assets and fosters a transparent and ethical work environment. This enhances the company's credibility.

Integrating external investigations with KPMG services

At KPMG Switzerland, we offer a full range of forensic review services to address various types of corporate misconduct. Our approach includes:

Fraud risk management: develop strategies to prevent, detect and respond to fraud and misconduct.

Forensic technology: use advanced tools to analyze real-time data and gather evidence.

Regulatory compliance: ensure that investigations comply with local regulatory requirements to reduce the risk of penalties.

Global investigations: support cross-border investigations by leveraging our international network and expertise.

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Forensic consulting

At KPMG Switzerland we help clients prevent, discover and handle misconduct to protect organizations with our expert forensic consulting services.

Mitigate risk and protect your organization

Leveraging digital forensics

Digital forensic techniques have become an integral part of modern inquiries and are critical to solving complex fraud cases. They include recovering deleted emails, tracing unauthorized access, and analyzing crime scenes – both physical and digital.

KPMG's forensic experts specialize in uncovering evidence in virtual environments, ensuring thorough and credible investigations that are tailored to the Swiss market.

Human Resources investigations and internal fraud prevention

Human Resources (HR) investigation processes are key to combating internal fraud and employee misconduct.

These investigations ensure compliance with company policies and Swiss legal standards, while protecting employee rights. By incorporating anti-fraud policies and regular training, HR professionals can help foster a culture that emphasizes ethical behavior and discourages misconduct.

In addition, HR teams play an integral role in identifying and addressing potential risks before they escalate.

Building a fraud-resilient organization

Corporate investigations uncover misconduct that can damage an organization's success and reputation. External forensic expertise and fraud management strategies help Swiss companies protect their operations and build a culture of integrity.

For more relevant information on how KPMG Switzerland can help with forensic investigations and misconduct prevention, please visit our Forensic consulting page.

Learn more about our forensic services

Manage corporate misconduct with forensic investigators

Cédric Biedermann

Legal responsibilities of Swiss employers

Challenges of internal investigations

Benefits of hiring outside forensic experts

Impartiality

Specialized expertise

Compliance with Swiss laws and regulations

Criminal investigations

Case study

Corporate culture and fraud prevention

Legal compliance in investigations

The role of investigation management tools

Investigations

Fraud management plan and ongoing strategies

Developing a proactive misconduct detection system

Monitoring tools

Behavioral reviews

Clear reporting systems

Employee training

Integrating external investigations with KPMG services

Forensic consulting

Leveraging digital forensics

Human Resources investigations and internal fraud prevention

Building a fraud-resilient organization

Meet our expert

Cédric Biedermann

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Whistleblowing – the leading fraud detection source

«The more regulated an industry, the more cases occur.»

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