ANTI-CORRUPTION, COMPLIANCE, RISK PREVENTION
Corruption and other financial crimes can be prevented and detected by means of sound internal controls, thorough analyses, and dedicated checks.
Having sound internal controls implies an overarching, risk-based programme, often refered to as a compliance or anti-corruption programme. To be able to prevent corruption, companies must fully understand the risks of corruption within their business operations.
Preventing corruption is an important part of doing responsible business. Corruption undermines good governance and economic development, and distorts international competitive conditions.
For a company, the potential consequences of corruption include financial, legal and social costs such as legal sanctions, loss of revenue, reputational damage and loss of market share.
The legal framework for anti-corruption is dominated by international conventions, the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act, which are widely enforced anti-corruption laws with strict sanctions and global coverage. In addition, many countries have established national Penal Code provisions on bribery.
Corruption risks can be managed by different strategic approaches, including avoidance, control, mitigation, transfer and acceptance of risk.
To prevent corruption, risk identification and mitigation are key elements. How the company organizes its anti-corruption work is important, so is the culture and awareness amongst employees and their ability to identify red flags indicating potential corruption.
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