1. Executive Director, Transparency International UK
Corruption Risk
AMLP
June 6th 2013
Robert Barrington
Executive Director, Transparency International UK

2. Agenda
Understanding bribery and corruption
TI risk assessment guide
Issues and challenges

3. Is corruption still a problem? Corruption Perceptions Index 2012

4. Corruption Perceptions Index

5. Global Corruption Barometer [Transparency International 2010]
Where are bribes paid?
Global Corruption Barometer [Transparency International 2010]

6. How well are companies doing?6

7. TRAC report Survey of 105 companies globally Publicly-available data
Scored in 3 categories
anti-corruption systems
organisational transparency
country-by-country reporting
Maximum 23 points 7 7

8. TRAC report 8

9. TRAC report – Financial Services9

10. TRAC report – Financial Services10

11. TI survey Putting Corruption out of Business
3,000 business people
30 countries
Data collected May-July 2011, published 2013 11

12. TI survey Putting Corruption out of Business
Do you feel the following means are effective at stopping corruption and bribery in the private sector?
(percentage of respondents who see the means as effective)
National anti-bribery laws
Total 38% UK 39% USA 29% Singapore 66%
Investigative journalism
Total 49% UK 41% USA 31% Pakistan 73% 12

13. TI survey Putting Corruption out of Business
Do you feel the following measures your company can take are effective in addressing corruption?
(percentage of respondents who see the measure as effective)
Auditing
Total 65% UK 70% USA 69% Japan 85%
Company anti-corruption procedures
Total 56% UK 54% USA 45% Nigeria/Brazil 79% 13

14. TI survey Putting Corruption out of Business
My company has an ethical duty to fight corruption
Yes
Total 79% UK 81% USA 78% Brazil 98% No
Total 21% UK 19% USA 22% Russia 55% 14

15. Risk Assessment Foundation of a good anti-corruption programme
What does a good risk assessment look like?
Using and moving beyond the CPI
TI publication Diagnosing Bribery Risk in July 2013
45 pages including
Checklist
Templates
Worked example
Written in collaboration with PwC

16. Challenge: how to capture global trends
Legal framework and enforcement
Rise of civil society – India, China, MENA
Social media – open data
Corporate transparency – Dodd-Frank, EU Directive
Tax – secrecy jurisdictions
Government action – G8, G20, OGP, UNCAC 16 16 16 16

17. Issues and challenges Conducted at too high a level?
Capturing the real risks?
Has risk assessment become too complex?
Does it link with existing procedures?
Is it easily replicable?

18. Conclusions Risk assessment is fundamental but…
…it may not be working for the business 18

19. Diagnosing Bribery Risk
Launch at PwC Fraud Academy
July 19 19