Due diligence is the best defense
How do you assure that your organization is well-equipped to identify, track, and manage bribery and corruption activities? With widening regulatory scrutiny, it’s risky to rely on “policies” alone. Companies need to actively monitor transactions to ensure compliance with policies, while identifying potential issues quickly without additional manual effort.
Minimize exposure to bribery-related activities with automation
ACL’s integrated risk assessment and data analytics workflow solution allows you to monitor and evaluate strategic risks in real-time, while analyzing transactional level business data with no manual effort required. Not only does this approach provide full visibility across your controls environment, but it also offers an intelligent view of the corruption exposure levels and the potential risk impact on the business by:
- Linking real-time test results directly to corporate risks, empowering senior leaders to drive risk assessment across the business.
- Identifying front line controls relevant to key strategic risks.
- Scheduling and automating tests to occur on an ongoing basis for continued evaluation of the related controls.
Having a proactive system in place also creates an automatic evidence trail available for regulatory reporting, helping to diminish the fines and damages imposed in the event of litigation.
Get strong assurance by assessing and mitigating risks
You might have a mature internal control framework for financial reporting set up. However, these control activities seldom uncover issues of bribery and/or corruption. As an example, a single donation used to hide a bribery payment would not typically raise any red flags, yet exposes an organization to risk.
1. Identify key bribery risks by performing 100% transactional data testing in less time and more efficiently (vs. traditional validation mechanisms like inquiries, sampling, etc.) to validate completeness of records, detect anomalies, and discrepancies in the data that need further investigation.
Anti-Bribery Analytics in action: where to apply bribery analytic tests across multiple business processes?
- Example tests for payments:
- Large accounts payable transactions to employees
- Account payment transactions to vendors matching employee details in multiple scenarios
- High salary employees without direct deposit
- Example tests for suspicious GL activities:
- Adjustments and write-offs for order-to-cash processes
- High risk expense categories
- Example tests for general indicators:
- Anti-bribery keyword search across major processes
- Large donations to charities
2. Detect and eliminate potential bribery and corrupt activity by automating continuous monitoring to discover fraud threats and policy violations, providing senior leaders with credible insight into potential vulnerabilities within the organization.
3. Demonstrate a strong compliance system is in place by creating a complete exceptions remediation workflow for incident resolution. Once issues have been identified, a questionnaire (also known as “human analytics”) can be sent through the system to the business notifying managers of suspicious activity and asking to provide justification as to why it’s occurred. These requests and responses are fully automated, can be stored and collated to the triggering transactional data, and are available for future reporting as part of the risk assessment mitigation.
4. Share visual findings on compliance status or highlight key risk indicators by using visualization tools for summarizing and presenting data in a compelling and comprehensible format to create a more intuitive interpretation for business stakeholders.
5. Raise executive visibility in real-time, anytime by enabling leadership to view and action results or recommendations of risk assessment and continuous monitoring activities. This type of reporting also helps to demonstrate due diligence to external regulators of the overall anti-bribery and anti-corruption defense program.
Leverage best practices and lessons with ACL Consulting
With over 25 years of global expertise, ACL Consulting has been helping Fortune 500 companies set up a well thought-out process that provides the right information, technology architecture, and the ability to report and trend bribery and corruption risks over time, giving you the assurance you need.