Deloitte: Key risks for Australian organizations

By Rob Starr, Content Manager, Big4.com

The inaugural Deloitte Bribery and Corruption Australia and New Zealand Survey highlights that exposure to bribery and corruption is on the rise and that many organisations either do not recognise the risks, or are not addressing them.

Key findings from the responses of nearly 400 organisations and individuals include the facts that 34% of organisations have operations in high risk offshore jurisdictions, but 48% of these have never conducted a corruption risk assessment, and 21% do not discuss corruption risk at management or board level. As well, 80% of organisations with offshore operations either do not regard foreign bribery and corruption as a high level risk to their business in the next five years, or said the risk was not applicable to their organisation.

Deloitte Forensic Partner Frank O’Toole said bribery and corruption has not traditionally been high on the risk agenda for Australian and New Zealand organisations – but this needed to change.

“Ignorance and inactivity are no longer a defence, and failure to act exposes directors, senior executives and employees to increasingly serious sanctions,” he said.

Only 25% of organisations with offshore operations have a comprehensive understanding of relevant anti-bribery and corruption legislation, while 40% said they are not concerned with risks arising from non-compliance.