1E9Ct5D

issues are identified in due diligence on a transaction, disclosures may be necessary toavoid subsequent litigation or enforcement risk. Disclosures in these and othercircumstances are markedly increasing as companies strive to identify and remediateproblems before they tempt reporting by whistleblowers or become the subject ofenforcement.H. Preparing for Internal and External InvestigationsIn companies confronting whistleblower and enforcement risk, risk managers areincreasingly working to establish plans and mechanisms that allow for the prompt andeffective review and evaluation of internally reported or discovered issues of concern.These plans ensure that internal reporters are engaged appropriately, and providefeedback on the evaluation of the reported concern and its ultimate handling. Plans forthe internal investigation of significant matters include readying resources that allow forthe quick assessment of compliance problems, evaluations of credibility, preparation forpotential enforcement response, and identification of any appropriate or necessarycorrective actions. A competent plan will also protect the organization and its managersfrom claims of improper internal investigation and issues such as bias. As thewhistleblower and related enforcement stakes increase, these activities protect thecompany and allow it to better defend against matters that may become the subject ofenforcement attention.22