Partner & Managing Director, New York
Survey respondents express lack of confidence in anticorruption programs and due diligence processes; one-third of respondents say aspects of remote working will increase corruption risk.
NEW YORK (September 22, 2020) – AlixPartners today released its annual Global Anticorruption Survey which focuses on the challenges faced by global businesses when managing corruption risks. The survey polled more than 300 corporate counsel, legal, compliance, accounting/finance, and purchasing/procurement professionals representing more than 20 major industries in North America, Latin America and Europe.
“The incredible disruption caused by Covid-19 has impacted businesses and people globally, and our survey shows that compliance and anticorruption programs are not immune to the unprecedented disruptive forces of the pandemic. Although respondents were divided on whether corruption risk will increase in the “new normal”, they agreed that the remote working environment would likely increase corruption risk,” said Sean Dowd, Managing Director at AlixPartners. “One troubling finding from our survey that really stood out was respondents’ lack of confidence in their anticorruption programs while at the same time respondents’ companies have reduced headcount for compliance programs in light of Covid-19. Not surprisingly in the current remote working environment, data privacy remains the #1 issue keeping legal and compliance officers awake at night.”
While the perceived corruption risk attributable to procurement remains high, the perceived risk
associated with sales functions has decreased 30% year-over-year with only 33% of respondents identifying it as subject to the highest level of corruption risk. With travel limiting how the sales function engages with customers, bribes associated with entertainment expenses and meeting in person are less likely.
Greater China was selected as the region where it’s impossible to do business without corruption with 30% of respondents saying they have avoided doing business there due to the high risk for corruption. This was followed by the Middle East, selected by 18% of respondents. From a regional perspective, corruption risk has significantly increased in the following areas since our 2019 survey.
Organizations continue to use data and enhance systems to access data for monitoring corruption and implementing compliance programs. Three out of four respondents use real time monitoring for suspicious behavior and 89% of respondents think their company is successful in using data to identify corruption. Year-over-year, data privacy remains the #1 issue keeping our respondents awake at night, selected by 55% of respondents.
The AlixPartners Global Anticorruption Survey polled more than 300 corporate counsel, legal, compliance, accounting/finance, and purchasing/procurement professionals representing more than 20 major industries in North America, Latin America and Europe. For more information about the survey, please click here.
Director, New York