Economic crimes, fundamentally, threaten the basic processes common to all businesses —buying and selling, paying and collecting, importing and exporting, growing and expanding. All organizations in the course of daily business face exposure to various types of economic crime from multiple angles that threaten these activities as they interact with third parties to create or exchange value.
And the risks continue to evolve. Like a virus, economic crime adapts to the trends that affect all organisations. Especially impactful megatrends include the increasing reliance on technology and technology-enabled processes across business, and the growing movement of economic energy toward emerging markets.
Here are some of the everyday business processes threatened by various forms of economic crime:
As an example, while common activities involved in building an overseas business venture in a high risk area are not automatically improper or inappropriate, in reality many have the potential to ensnare organisations. Practices like selling products to foreign government entities can challenge the integrity of employees as they struggle to both comply with company policies and anti-bribery regulations while also achieving financial goals in a local business culture characterised by a high demand for corrupt payments.