Top management have much to learn, survey finds

Only 68% of UK company boards discuss economic crime more than once a year, according to a survey by accountants RSM Robson Rhodes. Although most executives accepted that they were ultimately responsible for managing the risk, only 57% said that they understood the financial costs and under a third had received instruction on economic crime during their formal risk management training. On a more positive note, 70% said that investment in anti-fraud measures had risen between 2002 and 2003. 59% expected the threat to grow in the next three years. Extrapolated economic crime losses to UK business in 2003 were approximately UK£32 billion and a further estimated UK£8 billion was spent on prevention and insurance. The study of 108 UK listed and private companies included 24 FTSE 100 and 14 FTSE 250 firms as well as seven of the UK’s largest private businesses. Respondents had a total revenue of more than UK£500 billion.