Welcome to Business Risks Advisors

White-Collar Crime: Underestimating the Risks!

Background
Every year white-collar crime causes financial damages amounting to billions of Euros. In addition, there is the immaterial damage through negative press coverage as well as the resultant loss of trust by customers, investors and banks. As a result of these malicious acts some companies were even forced into market withdrawal or bankruptcy.   

Criminal acts within organisations show varying forms and manifestations:
manipulation of balance sheets, embezzlement, theft, betrayal of confidence, defalcation, fabricated tenders, extortion, corruption, industrial espionage, and computer crime which are just a few examples.

The effects of criminal activity have become one of the main threats for companies today. Surprisingly, only a small percentage of the organisations have modified their risk management systems to meet these inherent risks.

Facts and figures
According to recent publications by the Bundeskriminalamt (German Federal Police) there were approx. 90.000 cases of white-collar crime with a damage of over 5 billion € committed in Germany alone. It is presumed that a large number of cases remain unreported so that the actual number of offences and resulting damages is expected to be even higher.

Preventive action instead of reaction
The management needs to recognise risks exposures as early as possible. It has to avert possible financial and reputational damage from its organisation. Preventive measures are also important for managers themselves; they ensure compliance to legal requirements and provide indemnity against personal liability.

Our experience shows that preventive measures and adequate control mechanisms reduce the risk exposure considerably. Additionally, perpetrators within the organisation are often exposed at an earlier stage of their scheme.

Business Risks Advisors - Mastering Risks Worldwide