The conclusion of the APAC Economic Leaders’ Meeting in Beijing in November 2014 saw 21 countries in Asia Pacific convene alongside China and the US. Discussions led them to agree to share information and deny safe haven for corrupt officials through the Network of Anti-Corruption Authorities and Law Enforcement Agencies (ACT-NET).
With Asia Pacific nations stepping up efforts to protect economies and businesses against bribery and corruption, companies in the region, including international companies with operations in Asia Pacific may have to step up their measures to minimize exposure to regulatory risk.
Last year’s Asia-Pacific Fraud Survey conducted by EY found that while bribery and corruption is on the radar for companies in the Asia Pacific, they appear to lag behind other regions like Europe and the Middle East, with only 40% of Asia Pacific respondents saying that their companies have an anti-bribery policy or code of conduct.
“There may be policies in place, but these may not be sufficient in curbing bribery and corrupt activities in practice,” says Eric Lim, Managing Director, Asia Pacific for ACL. “One thing we have also observed is that companies may have tools and technologies to identify bribery risks, but they end up underutilized.”
Beyond the availability of policies and technologies then, perhaps due diligence and a pro-active approach through automation is useful for companies. They can apply this approach to prevent a potential bribery and corrupt activity from bubbling over the surface and exposing the organization to risk.
Get strong assurance by assessing and mitigating risks through:
1) Identifying bribery risks by performing 100% transactional data testing in less time and more efficiently (vs. traditional validation mechanisms like inquiries, sampling, etc.) to validate completeness of records, detect anomalies, and discrepancies in the data that need further investigation.
2) Detecting and eliminating potential bribery and corrupt activities by automating continuous monitoring to discover fraud threats and policy violations, providing senior leaders with credible insight into potential vulnerabilities within the organization.
3) Demonstrating a strong compliance system is in place by creating a complete exceptions remediation workflow for incident resolution. Once issues have been identified, a questionnaire (also known as “human analytics”) can be sent through the system to the business notifying managers of suspicious activity and asking to provide justification as to why it occurred. These requests and responses are fully automated, can be stored and collated to the triggering transactional data, and are available for future reporting as part of the risk assessment mitigation.
4) Sharing visual findings on compliance status or highlighting key risk indicators by using visualisation tools. These visuals are important for summarizing and presenting data in a compelling and comprehensible format to create a more intuitive interpretation for business stakeholders.
5) Raising executive visibility in real-time, and at any time by enabling leadership to view and action results or act on recommendations of risk assessment and continuing monitoring activities. This type of reporting also helps to demonstrate due diligence to external regulators of the overall anti-bribery and anti-corruption defense program.
Find out more about Automating Fraud Detection by checking out this guide.