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