Virtually no business is completely free of the risks associated with some sort of corrupt payments. Here are 5 steps towards building a process for managing anti-bribery and anti-corruption compliance.
For many corporations, the risks related to bribery and other forms of corrupt payments rank among the most serious risks that must be managed. The direct impact of financial penalties is not the only problem for businesses, as the damage to brand and reputation from negative publicity can have an even greater and more long-term impact. This e-book outlines the key aspects of an effective process framework for managing the risks of bribery and corrupt payments.
Some organizations, such as multinationals and those in specific industries, including defense, major construction and resources, are particularly at risk, but it typically extends to any organization competing for contracts across the globe. Virtually no business is completely free of the risks associated with some form of corrupt payments.
Many people in the world of audit, compliance, legal, and risk management will be well aware of high profile instances in which organizations had to pay many hundreds of millions of dollars in fines and penalties to U.S. and other national authorities for failing to comply with anti-bribery and corruption regulations.
As with many different forms of risks faced by corporations and other large organizations, there are ways to manage the risks associated with bribery and corruption so that the extent of risk is reduced to a level that is acceptable to the organization. Effective enterprise risk management (ERM) involves a process that, in principle, can be applied to any type of risk. Some organizations develop a comprehensive framework for ERM, where strategic risks are assessed and holistic programs put in place to monitor and mitigate risks organization-wide, while others have far more rudimentary approaches. Most research indicates that those businesses with capable risk management processes outperform those with ad hoc, disparate or informal systems.
Let’s look at the key aspects of an effective process framework for managing the risks of bribery and corrupt payments. While the specific risks and best response will always vary to some extent from one organization to another, as well as from one part of an organization to another, there are key factors and steps that should be considered in any risk management process for bribery and corruption. These are all part of what we refer to in this eGuide as the “ABAC Program” (Anti-Bribery and Anti-Corruption).
Download this eGuide now to review our 5-step process for managing anti-bribery and anti-corruption compliance.