Thursday, May 28, 2009

Ernst & Young European Fraud Survey 2009

London from the Stone GalleryImage by otrocalpe via Flickr

Last week Ernst & Young released their European Fraud Survey 2009 - a fascinating and disturbing (they called it "startling") report. I'd strongly recommend any readers with European operations to download a copy, as it highlights a number of key problems, including a shockingly high tolerance for unethical behavior and a serious lack of confidence in senior management and board members.

The survey was conducted in January and February with a total of 2,246 interviews with employees in 22 European countries - all participants were employed with companies with over 1,000 employees, stock exchange-listed or multinationals.

Here are just a few nuggets I pulled:
  • 55% of respondents expect corporate fraud to increase over the next few years
  • 29% believe management to be untrustworthy
  • 42% believe that the senior ranks in an organization pose the biggest threat of fraud.
  • 25% thought it was acceptable to make case payments to win new business (potential FCPA violations!)
  • At a country level, only 12% from Italy or France believed their management always operated with a high level of personal integrity (my ancestral home of the Czech Republic didn't fare much better at 13%)
On a much happier note, we had a fantastic user forum in Boston last week. Very interactive, lots of networking (favorite quote from the day from a conversation between two participants - "We HAVE to meet more often- we only work five minutes from one another!") and a great presentation from Doug Cornelius on the implications of social networking for compliance officers. I'll be in Chicago next week and am really looking forward to meeting our clients there. (unfortunately will not be able to attend the Toronto Forum also next week, but looking forward to hearing how it goes).
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