WASHINGTON--(BUSINESS WIRE)--Control Risks, the international business risk consultancy, released two reports examining the trends of corruption as a result of the global economic crisis: “Corruption, Compliance and Change: Responding to greater scrutiny in challenging times” and “Facing up to Corruption in Nigeria.”
Control Risks warns businesses to expect more cases of large-scale fraud and corruption as the crisis continues to unfold. As a consequence, tighter regulation is anticipated with inconsistent and imbalanced levels of enforcement varying from region to region.
“Countries that have never done so before, such as China and Japan, have begun enforcing corruption laws while those who have been enforcing regulations are now seeking steeper fines and, in some cases, lengthy prison sentences,” said John Bray, Director, Analysis for Control Risks. As the US is increasing its enforcement of the Foreign Corrupt Practices Act (FCPA), other Western governments are following suit. The Nigerian government is also involved in a series of high-profile corruption investigations. “To mitigate the risk of corruption,” continues Bray, “companies must ensure that they establish effective compliance controls and communicate these controls adequately to employees at all levels.”
To mitigate risk of corruption, Control Risks advises businesses to:
• Develop and communicate an effective compliance program;
• Secure the CEO and management team’s commitment to high standards of integrity;
• Rely on good business intelligence: choose the best people and partners;
• Cultivate diplomatic skills and cultural sensitivity;
• Be prepared for setbacks.
“Corruption will continue to be a serious issue,” states Elaine Carey, National Director of Investigations. “There is no doubt that the U.S. maintains the strictest regulations and enforcement for anti-corruption violations, which is precisely why U.S. companies operating internationally need to take a serious look at safeguarding their operations.”