There seems to be a lack of urgency and concern over bribery and corruption reveals recent DNV survey. Few take a structured approach to implement tangible measures to manage risks. Most companies are content with implementing an anti-bribery policy only. There seems to be a notion that “bribery and corruption happens elsewhere and not here.”
A popular estimate is that more than 2.6 trillion USD or 5% of global GDP is lost to corruption annually around the world(1). DNV’s survey indicates a large commitment to anti-bribery among most companies, but fewer seem to know and be in control of their actual risks. Concern circles primarily around compliance, reputation and ethical risks, but most stop at implementing an anti-bribery policy. Only 33.5% do risk assessments and 37.4% due diligence on sales agents.
A study by the Association of Certified Fraud Examiners (ACFE) reported that 85% of fraudsters displayed behavioral red flags of fraud(2). Nearly half of the cases studied occurred due to lack of internal controls or override of existing controls. Moreover, 81% of victim organizations modified their anti-fraud controls following the fraud, most likely a recognition that a structured approach is needed.
DNV’s survey does show that companies recognize the benefits of an anti-bribery management system. Companies adopting an anti-bribery approach based on the internationally recognized ISO 37001 standard take more active steps to map their risks and ensure that they are better equipped to manage these to prevent incidents rather than mitigating them. However, few seem to adopt a structured approach until forced to make changes due to an incident.
Read the full report and learn more about how companies view and approach anti-bribery measures to protect their businesses and reputations.
(1) Reference: The World Bank blog
(2) Reference: ACFE study
