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We do not replace any "open door" policies and your employees should know that; we do provide another option for those who are afraid to speak up. Realistically speaking, however, in our capacity as advisors we rarely encounter a victim organization that didn't think it had an open door policy. Red Flag Reporting is not a case of "Big Brother" watching. It is a tool for preventing "one bad apple from spoiling the bunch."

This decision can be made on a case by case basis. It can be beneficial to share with employees the actions taken by management in response to certain reports and the consequences to the perpetrator. This can be done without naming names, is a powerful deterrent to bad activity, and is encouraging to honest employees. You can also do this directly but anonymously with the reporter through our case management system.

We occasionally do receive reports that while real concerns, really are not the purpose of the hotline. These represent only a small minority of reports received and are avoided and minimized via employee education.

Reports are only provided to a small group of members of upper management. Upper management takes an "innocent unless proven otherwise" approach. Reports are maintained in a secure portal and will be investigated with a tone of sensitivity towards both the reporter and the accused.

If your system is externally managed, you lack the professional feedback from independent, credentialed professionals that Red Flag Reporting delivers as a hotline provider. Furthermore, RFR provides on-going communications promoting safe and ethical behavior. Additionally, our case management system is second to none, while many providers do not provide case management. Finally, we are highly responsive to reporters and case managers.

If your system is internally managed, you probably are not as good with what you have as you think you are. Employees are very sensitive about anonymity and are not likely to call an internal hotline.

Actually, the time commitment is minimal. We do most of the heavy lifting for you. Practically, your all-in time over the roll-out period is likely three hours or less, plus any time you spend at live trainings.

Very practically, we are far, far less expensive than insurance you have, which (hopefully) you may never use. We have the benefit of deterring and detecting bad behavior before such behavior leads to expensive problems and claims. Our hotline service is also an inexpensive benefit for your employees.

A few things to keep in mind regarding Red Flag Reporting hotline services:

- Our hotline service is extremely simple to implement, requiring very little work.
- Our hotline service is surprisingly affordable, generally requiring a nominal dollar amount per employee per year. Statistics show that just one report can cover the cost of our service for decades.
- Our hotline service is comprehensive – it is not just for a specific topic. It covers any type of unethical behavior ranging from theft to HR issues and from safety to environmental issues.
- Our hotline service is effective – The Association of Certified Fraud Examiners has identified a fraud hotline as the most cost-effective internal control an organization can have.
- Our hotline service is empowering – most unethical activities are found through open channels of communications and not through checks & balances, audits, and the like.
- Our hotline service acts as a deterrent – Through our training, on-going communications, posters, and wallet cards, we help you remind your employees that you expect ethical behavior.

Frankly, the answer is the same answer for any complaint received through any means. Another question is: if you have a problem and don't know about it, how are you going to prevent the impending damages to your reputation, employees, and assets?

This is one of the most common concerns we hear. Through September 2023, we are aware of having received only two false reports in over thirteen years. While it is possible that there are others that we don't know about, if the problem were common we would likely hear about it more frequently. We discourage false reports through training and by requiring employees to certify their assertions. When we receive reports, they are real and our clients are happy to be able to address them before they become a bigger problem. Furthermore, only people who have organization specific identifiers can contact Red Flag Reporting. This minimizes the likelihood of false reports.

Anonymous reports can have their limitations but remember, unlike anonymous letters, phone-calls, faxes or e-mails to the company, as a hotline provider Red Flag Reporting gives reporters the option to be anonymous to you but not to us. This allows us to gather follow-up information on your behalf. Reporters may also elect to communicate directly but anonymously with you through our software.