Corruption Risk ranks among the top three risks faced by companies – new laws and more aggressive enforcement call for more proactive anti-corruption measures
Washington, DC (PRWEB) December 19, 2014
Corruption–which poses significant strategic, operational, financial and reputational risks for companies, and potential jail time for individuals–can be addressed through existing enterprise risk management (ERM) programs, according to a new whitepaper released by The Center for Responsible Enterprise and Trade (CREATe.org).
Properly and effectively understanding and managing anti-corruption-related risk has become an increasingly important part of international business operations. Increased enforcement activity and the proliferation of anti-corruption laws in countries around the globe highlight the need for companies to understand their corruption risks and adopt and enforce effective anti-corruption programs to meet them.
The CREATe whitepaper–entitled Addressing Corruption Risk through Enterprise Risk Management–explains how companies can follow the approach of the major ERM standards and frameworks to:
- more effectively to “identify, assess and manage” corruption-related risks; and
- understand the elements of an effective anti-corruption program and how to integrate those elements into existing business processes and procedures.
Corruption risk ranks among the top three risks faced by companies according to the 2013 PricewaterhouseCoopers (PwC) 2013 State of Compliance survey, and these risks are perceived to be increasing. These risks will vary based on industry, country and use of business partners and third parties, creating a need for a method for addressing such risks.
ERM is a fundamental tool for helping a company shift from dealing with negative events reactively to taking a preventative approach to the risks that it faces, and for strategically allocating resources to reduce the company’s risks internally and in its end-to-end supply chain. By taking a holistic approach implemented through the company’s management systems and business processes, companies can deal with a range of very different risks in an organized and integrated way.
Please visit http://www.CREATe.org to download the report.
Founded in October 2011, the Center for Responsible Enterprise And Trade (CREATe.org) is a non-governmental organization (NGO) helping companies prevent piracy, counterfeiting, trade secret theft, and corruption.
Our mission is to make leading practices in IP protection and anti-corruption achievable for all companies. To achieve this mission, we have developed CREATe Leading Practices for IP Protection and CREATe Leading Practices for Anti-Corruption, two services based on best practices drawn from multinational companies, academics, international and business organizations.
Building on decades of work across the business community on quality assurance, health and safety and other issues, CREATe takes a management systems approach to helping companies implement the internal business processes they need to effectively protect intellectual property and prevent corruption.
Companies around the world are using CREATe Leading Practices to benchmark and improve systems for IP protection and anti-corruption. The services are available in Chinese, English, Portuguese and Spanish.
Please follow us on Twitter @CREATe_org or connect with us on LinkedIn.
Director of Marketing and Communications