Corruption
Below are the details of the operational risks covered within this selected sub-risk category:
Accepting a bribe in return for illegal favors or preferential treatment
Risk Description: -
Employees may misuse their influence or position in the firm to demand bribe from stakeholders in return for preferential treatment. Stakeholders can include: -
- Suppliers
- Customers
- Business Partners
- Potential Job Candidates
Bribe may be demanded in form of cash or business favours. E.g.:-
- Accepting a bribe to give sales contract to a vendor.
- Accepting a bribe from customers in return for preferential treatment over others.
- Accepting a bribe from business partners in exchange for bypassing firm's processes.
- Accepting a bribe from potential job candidates for securing an interview or employment.
Offering a bribe in return for overlooking illegal activity or receive preferential treatment
Risk Description: -
Employees may offer bribe for overlooking illegal activity or receiving preferential treatment/favours from stakeholders. Stakeholders can include:-
- Customers
- Management
- Suppliers
- Business Partners
- Government Agency
- Regulator
Bribe may be offered in form of cash or business favors. E.g.: -
- Offering a bribe to a manager in customer firm to get access to a key board member.
- Offering a bribe to a senior manager within the firm to fast-track job promotion.
- Approving request from supplier to bribe government official to fast-track delivery of supply of IT servers.
- Offering a bribe to a business partner for processing an illegal business transaction on behalf of the firm.