• Reports indicate tighter regulations and more scams in the future
• Some 40-50 per cent of survey respondents agree that organised crime could have serious impact on international companies

The global economic crisis has caused many analysts to speculate whether it is a genuine turning point that will lead to radically different financial and regulatory models, or just a short-term period of turbulence that will reinforce rather than overturn long-turn historical trends.

In the anti-corruption field, Control Risks argues that the global economic crisis will lead to more scams, tighter regulation and inconsistent and uneven enforcement. In such a climate, good companies may be tempted to stay away from high-risk markets.

However, this may not be the best approach as the companies may miss out on opportunities in these markets. To successfully compete in these high-risk markets, Control Risks recommend ensuring compliance controls are effective and fully understood at every level of the company hierarchy, and also for these companies to develop active engagement strategies to compete for business honestly, even in countries with high levels of corruption.

The Control Risks report “Corruption, Compliance and Change: Responding to greater scrutiny in challenging times” includes an analysis of the moves towards stricter enforcement of laws against foreign bribery in industrialised countries. It also contains an assessment on anti-corruption reforms in China, Nigeria and the countries in Central and South-eastern Europe.

Read the report “Corruption, Compliance and Change: Responding to greater scrutiny in challenging times” in PDF

In the report “Business, corruption and economic crime in Central and South-east Europe”, Control Risks reveals the findings of a survey of senior executives from 244 international companies operating in three countries in Central Europe (the Czech Republic, Hungary and Poland) and three in Southeast Europe (Bulgaria, Romania and Serbia) on the level of corruption in these countries and the extent of their personal experience.

It also includes recommendations for international companies to counter such practices. These include:

• A code of ethics forbidding bribes and kickbacks paid either directly or indirectly. The code should be translated into local languages and distributed widely.
• An implementation programme, including awareness-raising at all levels of the company and training for those who are likely to be most exposed to corruption risks.
• Ethics hotlines.
• Regular audits and reviews.
• Procedures for conducting due diligence integrity reviews of business partners.

Read the report “Business, corruption and economic crime in Central and South-east Europe” in PDF

About Control Risks

Based in London, Control Risks is one of the world’s leading global business risk consultancies, offering a range of integrated political, security, investigative and crisis management services to government and corporate clients worldwide. With 27 offices in five continents, we provide advice and assistance that enable our clients to accelerate opportunities, and manage the strategic and operational risks that come with doing business internationally.

We have a long and established history of operating in Asia Pacific since 1987 and have offices in Hong Kong, Shanghai, Beijing, Singapore, Jakarta, Tokyo, New Delhi and Sydney. Our presence in the region allows us to respond to our client’s needs at every stage of their international or domestic investments and projects. Our experience spans global industries, including financial services, manufacturing, government, oil and gas, natural resources, infrastructure, construction, engineering and transport.