KPMG’s survey has identified two factors creating new issues for companies.
First, a growing number of governments internationally are tightening ABC regulations or introducing new ones. Second, as companies globalise their operations, they rely more heavily on third parties to do business in far-flung parts of the world, often in areas where there is a high risk of corruption.
- There is a sharp increase in those who say they are highly challenged by the issue of ABC.
- As companies continue to globalise and outsource, management of third parties (e.g. agents and other business associates) poses the greatest challenge in executing ABC programs.
- Despite the difficulty in monitoring business dealings with third parties, more than one third don’t formally identify high-risk third parties.
- A top-down risk assessment would help companies set priorities, but executives admit that an ABC risk assessment is one of their companies’ top challenges.
- Data analytics is an increasingly important and cost-effective tool to identify potential ABC violations. Yet only a quarter of respondents use data analysis to identify violations and, of those that do so, less than half continuously monitor data to spot potential violations.