All abroad – a global risk survey

Earlier this year, Kroll released its annual Global Fraud Report, which highlights four key findings: theft of information and electronic data has surpassed all other frauds for the first time; fraud is largely an inside job; fear of fraud is dissuading companies from going global; and companies are unprepared for increasing regulatory efforts against corruption. Tommy Helsby circumnavigates the risk map.

Tommy Helsby (+44 207 029 5000, thelsby@kroll.com) is Chairman of the Europe, Middle East and Africa Region for Kroll.

Opportunity costs

The Global Fraud Report, based on a survey we commissioned, aims to help businesses grow whilst managing the risk and impact of fraud. The need for growth - or in some cases, survival - is pushing companies outside their comfort zones, either by developing new product lines or through finding new geographical markets to enter. The quick way to do that is through acquisitions, joint ventures and agency or distribution agreements, and, as with all short cuts, this can be a risky approach. Your acquisitions or partners can infect you with questionable business practices or lax standards, which may have been tolerated in their sector or country of operation, and you may well find yourself on the hook for the consequences. According to 48% of respondents to the survey, it is fear of fraud, and its consequences, which has dissuaded them from operating in other countries – less mitigating risk, more missing opportunities.