Fraud, Bribery and Corruption: Protecting Reputation and Value
In this article we outline ten items that can help executives to gauge their entity's sophistication in mitigating reputational risks that could arise from alleged fraud, bribery, or corruption, and to assess the scope for improvement. Executives may want to consider how their entity manages its risks of fraud and corruption and whether today's risk environment merits a more proactive approach.
Global media and the Internet enable news to travel faster and reach more people than ever before. The international nature of business and growing collaboration among regulators worldwide can expose entities to a greater number of regulatory regimes. These factors may increase both the likelihood and the potential impact of alleged wrongdoing on an entity's reputation and shareholder value.
Management, the audit committee, and the board may have different views on the cost/benefit tradeoffs involved and the appropriate balance given the risk environment. Asking the questions in this article may help better define and mitigate reputational or financial risk in the event of allegations of fraud, bribery, or corruption.
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