PPT Presentation: Corruption Risk (Presentation to AMLP by Robert Barrington, June 2013)

Corruption Risk AMLP June 6th 2013

Robert Barrington Executive Director, Transparency International UK

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Agenda • Understanding bribery and corruption • TI risk assessment guide • Issues and challenges

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Is corruption still a problem?

Corruption Perceptions Index 2012

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Corruption Perceptions Index

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Where are bribes paid?

Global Corruption Barometer

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How well are companies doing?

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TRAC report • Survey of 105 companies globally • Publicly-available data • Scored in 3 categories • anti-corruption systems • organisational transparency • country-by-country reporting

• Maximum 23 points

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TRAC report

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TRAC report – Financial Services

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TRAC report – Financial Services

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TI survey Putting Corruption out of Business • 3,000 business people • 30 countries • Data collected May-July 2011, published 2013

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TI survey Putting Corruption out of Business •Do you feel the following means are effective at stopping corruption and bribery in the private sector? (percentage of respondents who see the means as effective)

•National anti-bribery laws Total 38% UK 39% •Investigative journalism Total 49% UK 41%

USA 29%

Singapore 66%

USA 31%

Pakistan 73% 12

TI survey Putting Corruption out of Business •Do you feel the following measures your company can take are effective in addressing corruption?

•(percentage of respondents who see the measure as effective)

•Auditing Total 65% UK 70% USA 69% •Company anti-corruption procedures Total 56% UK 54% USA 45%

Japan 85% Nigeria/Brazil 79% 13

TI survey Putting Corruption out of Business •My company has an ethical duty to fight corruption •Yes Total 79% •No Total 21%

UK 81%

USA 78%

Brazil 98%

UK 19%

USA 22%

Russia 55%

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Risk Assessment • Foundation of a good anti-corruption programme • What does a good risk assessment look like?

– Using and moving beyond the CPI

• TI publication Diagnosing Bribery Risk in July 2013 • 45 pages including – Checklist – Templates – Worked example

• Written in collaboration with PwC 15

Challenge: how to capture global trends • Legal framework and enforcement • Rise of civil society – India, China, MENA • Social media – open data • Corporate transparency – Dodd-Frank, EU Directive • Tax – secrecy jurisdictions • Government action – G8, G20, OGP, UNCAC

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Issues and challenges

• Conducted at too high a level?

• Capturing the real risks?

• Has risk assessment become too complex?

• Does it link with existing procedures?

• Is it easily replicable?

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Conclusions

• Risk assessment is fundamental but…

• …it may not be working for the business

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Diagnosing Bribery Risk

Launch at PwC Fraud Academy

July 10 2013

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www.transparency.org www.transparency.org.uk

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