Thirty-five percent of risks and compliance professionals participating in a joint study by Kroll and the Ethisphere Institute believe that bribery and corruption will go up in 2017.
The report titled “Anti-Bribery and Corruption Benchmarking Report” also revealed that respondents believed the top risks to their anti-bribery and corruption programs will come from third party violations (40%), a complex global regulatory environment (14%), and employees making improper payments (12%).
Figure 1: Top risks to anti-corruption programs
A strong trend that emerged in this year’s ABC Report is the dependence on ongoing compliance monitoring to capture post-onboarding bribery and corruption issues. Fifty-five percent of respondents report they identified legal, ethical, or compliance issues with a third party after conducting initial onboarding due diligence.
In 40% of these cases, the issue that was later identified did not exist at the time of initial onboarding. The value of ongoing monitoring is reflected in the level of confidence that survey-takers have in their ABC programs. Nearly 80% of respondents who monitor all of their third parties, regardless of risk profile, believe they are either extremely or appropriately prepared to address global bribery and corruption risks. Conversely, feelings of preparedness drop as the level of ongoing monitoring goes down.
Source: Fintech Innovation