The Critical Role of Managers in Strengthening Internal Reporting Systems

The Critical Role of Managers in Strengthening Internal Reporting Systems

Effective compliance programs depend on the quantity and quality of internal reports received. Capturing more reports provides organizations with deeper insights into potential risks and allows for faster remediation. To achieve this, an article by Navex says compliance teams must ensure their internal reporting systems account not only for hotline and web-based reports, but also for complaints employees raise with their managers. 

The article cites recent findings from the NAVEX 2025 Whistleblowing & Incident Management Benchmark report, which show that organizations tracking all intake channels, including manager reports, receive significantly more reports—an average of 1.2 additional reports per 100 employees. At scale, this difference can double the number of actionable insights available to compliance teams.

To fully capture this information, organizations must equip managers through targeted training that helps them recognize when an employee is raising a compliance issue, even if the report is informal, incomplete, or hidden among other grievances. Providing managers with an easy and structured way to escalate reports—whether through an online tool, hotline, or direct communication—also ensures reports are not lost. 

Additionally, policies requiring managers to escalate complaints, reinforced by clear consequences for noncompliance, can strengthen the system. Organizations should also foster a culture where raising concerns, even about bad news, is not only accepted but also expected, reducing the fear of retaliation among middle management.

For risk management leaders, an effective internal reporting strategy hinges on empowering managers. By strengthening manager training, simplifying reporting channels, and embedding a culture of integrity, organizations can gain a more accurate view of emerging risks and address them before they escalate.