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Middle market companies need to do more to respond to global corruption risks

RSM member firms have seen a steady increase in providing compliance and risk services since the onset of the 2007 global financial crisis. McGladrey, the RSM member firm in the US, has published a survey in conjunction with The Institute of Internal Auditors Research Foundation, examining the extent and nature of the risks faced by many middle-market companies transacting business internationally and the mechanisms they have in place (or not, as the case may be) to mitigate those risks. 

Middle-market companies are more global than ever in their operations, and face exposure to increasing numbers of risks through their third party business relationships, including arrangements with multi-national vendors, service providers, distributors, sales and customs agents, freight forwarders and other intermediaries. The results of the study, conducted with 120 C-suite leaders of these businesses, are revealing and concerning. For example, 27 per cent of businesses never test the effectiveness of their global corruption law policy, and less than a third do so only on an annual basis. An alarming 40 per cent of respondents categorised their businesses’ response to corruption law compliance as ‘non-existent’ or ‘minimal’. In an era when many countries are strengthening their anti-bribery and corruption laws, and widening the scope of their prosecutions, this is an area where many businesses need to focus greater resources.

Download the full report - www.mcgladrey.com

Author

Jean M Stephens
Chief Executive Officer

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