eLearningClasses.com
Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

THE RISK ADVISORY GROUP REVEALS THE TOP CORRUPTION DANGER SPOTS FOR BUSINESS IN 2017

China is the country where businesses face the biggest corruption challenges

China is the country where businesses face the most potent combination of corruption risk and difficulty in obtaining a clear picture of the local business environment, followed by Iraq and then Nigeria. This is according to new analysis from global risk consultancy The Risk Advisory Group which found that companies can expect to encounter more corruption challenges in Asia and in Africa than in any other region – and least in Europe.

TheRisk Advisory Group’s Corruption Challenges Index ranks 181 countries using a number of measures, including:

  • the local threat of corruption
  • how exposed foreign investors are to corruption itself as well as to FCPA enforcement action
  • the availability of reliable information to conduct integrity due diligence and mitigate the risk of dealing with corrupt parties

The rankings reflect the expert judgement of Risk Advisory’s analysts and their experience of helping organisations investigate and do business in those markets.

Enforcement actions under anti-bribery legislation such as the US Foreign and Corrupt Practices Act (FCPA) can greatly elevate the risk to businesses operating in a jurisdiction, and the high number of FCPA cases involving China is one of the main reasons for its top spot in the index. A high corruption risk rating by Risk Advisory’s analysts, a censored press, and poor quality or hard to access public information were the other common features of the countries labelled as most challenging.

At the other end of the spectrum, Europe generally performs well in the index and dominates the list of least challenging countries.  It makes its first appearance at number 28, with Greece, which although not assessed to have the highest risk of corruption in the region (that position is held by Bulgaria), presents significant challenges for foreign investors. Highly fragmented corporate databases and a lack of reliable local investigative sources make the country an extremely problematic place to conduct due diligence investigations, particularly for non-native Greek speakers.

Industry sectors are also ranked, with construction and development, infrastructure, oil and gas emerging as the most challenging from a corruption point of view.

Bill Waite, Group Chief Executive Officer of The Risk Advisory Group said, “High levels of corruption risk need not preclude a market from a company’s expansion plans for 2017.  And indeed in certain industries the riskiest countries are often the most rewarding.  The key to overcoming the challenges is to have a robust risk mitigation programme in place, based on adequate integrity due diligence.

“However, as Risk Advisory’s index shows, the ability to obtain the right information for due diligence varies enormously from one jurisdiction to the next.  This is why having access to investigators with local experience, networks and language capabilities can greatly enhance a business’ chance of success.”

To understand the unique corruption challenges of countries they are planning to invest in this year, businesses can consult The Risk Advisory Corruption Challenges Index and interactive map on The Risk Advisory Group website.