Companies spend huge sums on audit, risk management, and compliance to alert them about potential legal issues before they escalate into serious corporate governance failings. There’s only one problem, however–they often misread their own early warning signs or ignore them altogether.
There are countless examples of situations where organizations have detected “red flags” that indicate possible noncompliance and even serious criminal activity, but then fail to follow up, investigate, or report the problem. In worst case scenarios, companies simply do not act on their own evidence.
