EY’s latest installment on global fraud presents persistent or residual level of inappropriate conduct that looks like it cannot be eradicated. In particular, companies need to mitigate the risks of “what 'good' looks like” in fraud, bribery and corruption risk management and investigation while dealing with cybercrime as a new risk.
The responses of 2,700 executives across 59 countries paint a disturbing picture. There is a correlation between executive roles and their willingness to justify certain activity when under pressure to meet their financial targets. For example, 46% of CFOs said that one or more questionable actions are justifiable in certain circumstances (higher than the 42% across all respondents).
Compliance efforts may be losing ground, with only about 1% of companies having implemented any anti-bribery/anti-corruption (ABAC) policies within the past two years. A minority has not even yet taken the basic steps toward an effective compliance program.
- Challenges in Addressing New Risks – Cybercrime
- Fraud – Long-Standing Risks Present Challenges Too
- Bribery and Corruption – Are Compliance Efforts Running Out of Stream?
- Risks Old and New Require a Dynamic Response