Partner & Managing Director, New York
Survey respondents cited lack of skilled personnel, budgetary concerns, technology, and C-suite and board prioritization as top reasons for inaction.
NEW YORK (September 30, 2021) – AlixPartners, the global consulting firm, today released its annual Global Anticorruption Survey which focuses on the challenges faced by global businesses when managing corruption risks.
Corruption is pervasive globally. In fact, 80% of respondents in our survey indicated that their industry is regularly exposed to corrupt practices. Particularly noteworthy was the number who indicated their organizations were not aggressively responding to corruption concerns. Respondents identified several gaps in their organizations:
When asked to identify the challenges impacting their organization’s ability to address corruption risk, the most frequently cited were:
“The most important consideration to combating corruption is having a vigilant mindset at every level across the company. However, it is noteworthy that our survey highlights the disconnect between the recognition that exposure to corrupt practices remains very high, yet respondents acknowledge that their policies and programs are inadequate. Further exacerbating the problem, a majority of respondents (60%) think corruption risk will increase in a hybrid work model,” said Sean Dowd, Managing Director at AlixPartners. “Developing proactive and regular training and establishing accountability among employees and third-parties are effective in creating a culture of compliance. Mitigate risk now to save money, time, and reputational damage later.”
The good and the evil of data
Data is a double-edged sword when it comes to fighting corruption. On one hand, its volume, availability, collection, and analysis can be hugely helpful in identifying and pursuing corrupt practices and their perpetrators. But on the other, issues, such as privacy concerns, present challenges to companies seeking to investigate possible wrongdoing. One-half of survey respondents cited data privacy as something that keeps them up at night. Data privacy concerns are exacerbated by the exponential growth of data that companies must manage in order to maintain anticorruption programs. In cross-border investigations, data collection presents particular challenges, with the biggest issues cited as:
The arms race for compliance talent
Compliance professionals are in demand, but the supply is a challenge. Factors driving this demand include:
About 75% of respondents, for instance, said that inadequate staffing was a challenge to their company’s ability to address corruption risk. Almost half cited insufficient staff expertise as a limitation on their company’s ability to conduct antibribery/anticorruption due diligence.
About the 2021 AlixPartners Global Anticorruption Survey
The AlixPartners Global Anticorruption Survey polled more than 300 compliance and risk management professionals as well as corporate counsel and other professionals in legal, accounting/finance, and purchasing/procurement professionals representing more than 20 major industries worldwide. For more information about the survey, please click here.
AlixPartners is a results-driven global consulting firm that specializes in helping businesses successfully address their most complex and critical challenges. Our clients include companies, corporate boards, law firms, investment banks, private equity firms, and others. Founded in 1981, AlixPartners is headquartered in New York and has offices in more than 20 cities around the world. For more information, visit www.alixpartners.com.
Director, New York