Global boards are insufficiently prepared to
deal with new fraud and corruption risks businesses face, according
a recent survey by Ernst & Young (E&Y).

Three-quarters of respondents, who were senior
finance professionals, said company boards are increasingly
concerned about personal liability stemming from fraud, bribery and
corruption.

Despite this, a large number of companies do
not perform frequent risk assessments, increasing the risk of
fraud.

The 11th Global Fraud Survey:
Driving ethical growth – new markets, new challenges
quizzed
more than 1,400 chief financial officers and heads of legal,
compliance and internal audit from companies in 36 countries.

According to the report, 18% of UK companies
failed to perform a fraud risk assessment within the past 12
months, followed by companies in Western Europe (14%) and the rest
of the world (11%).

“Increased enforcement against fraud, bribery
and corruption is a priority in many major markets,” said John
Smart, E&Y UK and Ireland fraud investigation and dispute
services leader.

“Individual executives and directors will not
be immune from prosecution. Indeed, the passage of the UK’s Bribery
Act is the latest example of a more robust approach to punishing
the unethical conduct of individuals and corporates, and one that
may have extraterritorial application.”