LexisNexis Risk Management warns that companies have a responsibility to demonstrate their commitment towards preventing bribery as a matter of priority, or face being fined.<\/p>\n
Companies are required to mitigate financial penalties and reputational risks associated with bribery and corruption within their organisation and third-parties, with adequate preventative measures as per the requirements of the Bribery Act 2010.<\/p>\n
They must implement effective controls, measures and due diligence procedures by law or risk exposure, penalties and fines, said Rudi Kruger, GM at LexisNexis Risk Management.<\/p>\n
\u201cIt is necessary for them to identify potential incidents and to recognise them when they occur. However, many companies are ill-prepared,\u201d he said.<\/p>\n
\u201cFirst and foremost, it is important to note that bribery and corruption do not show up in plain sight. Companies are often unaware of their risk because they are not aware of the many forms in which bribery and corruption can occur. Daily business functions are the gateway to many of these activities and present serious risks if not controlled,\u201d said Kruger.<\/p>\n
He referenced the list of common corruption indicators, issued by Serious Fraud Office, the UK body which investigates and prosecutes serious and complex fraud.<\/p>\n
\u201cAlthough not all inclusive, the list of indicators goes a long way towards creating awareness on the many guises and opportunities for corruption to occur,\u201d he said.<\/p>\n
LexisNexis pointed to the following indicators when tackling potential bribery and corruption:<\/p>\n
\u201cIn addition to these tell-tale signs, it\u2019s in your organisation\u2019s best interest to have in place comprehensive due diligence policies and procedures, which prove highly effective in mitigating risk as they provide you with the relevant intelligence.<\/p>\n
“All parties involved in your business, whether suppliers, partners, acquisition targets, contractors, resellers, grant applicants, other associates and in-house personnel, must be thoroughly vetted on an ongoing basis,\u201d said Kruger.<\/p>\n