Mitigating the risk of corruption in emerging markets through best practices and data analytics.
详细信息
文摘
Corporations continually work to increase profitability through an enhanced revenue stream and a larger market share. An emerging trend is for companies to expand overseas and develop the untapped potential of international markets. This strategy contains many unknowns； including the amplified risk of corruption when entering emerging markets such as Brazil,Russia,India,and China (BRIC). In order to mitigate corruption,companies must realize the corruption dynamic of each country and the parameters set forth by the legal landscape. The Foreign Corrupt Practices Act (FCPA or "the Act") is a United States regulation that prohibits bribery of foreign officials and requires the maintenance of accurate books and records. To realize the benefits of emerging markets,organizations must implement a compliance program to deter and detect corrupt activities and thereby avoid FCPA violations. In response to the increased globalization and subsequent corruption-focused investigations,regulators and external parties have recommended numerous concepts for compliance. Prescribed best practices include the application of a risk-based compliance program,clear policies and procedures,and constant education. However,in order to close control gaps and timely detect suspicious behavior,the implementation of data analytics is critical. This paper will review the enhanced corruption risks of doing business in BRIC nations,the requirements under the FCPA,and how to build a comprehensive compliance program to deter and detect corruption through best practices and data analytics.