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How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
How can companies improve their due diligence processes?
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How can companies improve their due diligence processes?

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Tyson Wienker, Director of Strategy, Technology & Product Development for LexisNexis Pacific discusses the true cost of bribery, how can organisations improve their due diligence processes, emerging …

Tyson Wienker, Director of Strategy, Technology & Product Development for LexisNexis Pacific discusses the true cost of bribery, how can organisations improve their due diligence processes, emerging technologies & their impact on global risk and compliance at the GRC/ACI Conference, Gold Coast, November 18-20, 2012.

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  • 1. How can companiesimprove their duediligence processes?Tyson WienkerDirector of Strategy, Technology & Product Development, LexisNexis PacificGRC/ACI Conference, Gold Coast, November 18-20, 2012
  • 2. Agenda 1 The True Cost of Bribery 2 A Global Perspective on Corruption 3 On the home front: Bribery Down Under 4 How can organisations improve their due diligence processes? 5 Emerging technologies & their impact on GRC 6 A Changing Landscape: Big Data and the future LexisNexis Risk & Compliance 1
  • 3. The true cost of bribery BY THE NUMBERS “A consensus has now been reached that corruption is universal. It exists in • The World Bank estimates that each year all countries, both developed and bribery and corruption results in the developing, in the public and private misdirection of US$1 to US$1.6 trillion globally. sectors, as well as in non-profit and charitable organisations” • Corrupt practices costs companies as much as Asia-Pacific Development Journal 35% of the cost of doing business in Asia. THE GREATER COST $ • Creating uneven competitive environments • Undermining business and consumer confidence • Discourages investment through market instability $1.6 trillion • Undermining environmental protections • Flow on ‘blind eye’ effect on other criminal activity Sources: Ernst & Young, Upping the Ante Report, 2010; Transparency International New Zealand LexisNexis Risk & Compliance 2
  • 4. A global perspective on corruption 70% of countries in regions Australian organisations trade in pose a serious corruption risk LexisNexis Risk & Compliance 3
  • 5. Risk & Compliance: Bribery Down Under • More than 34% of AU & NZ organisations are 54% indicated that the operating in high risk jurisdictions level of corruption in Australia had increased • One in five of these organisations have identified in the previous three an incident of bribery or corruption in the past five years. years, with around 60% of these incidents occurring in the past 12 months alone. Transparency International’s Global Corruption Barometer 2010/2011 • Despite this, 80% of organisations with offshore operations either do not regard foreign bribery and corruption as one of the top five risks in the next LexisNexis Bribery five years. Awareness Index LexisNexis AU/NZ Bribery Awareness Index 2012 Media coverage of 122% 120% bribery incidents has 118% increased by 10% in 116% 114% past three months 112% 110% 108% 106% Sources: Deloitte Bribery & Corruption Survey, AU & NZ, 2012; Aug Sep Oct LexisNexis Bribery Awareness Index, November 2012 LexisNexis Risk & Compliance 4
  • 6. RiskRi & Compliance: AML/CTF Perspective Reports of suspicious transactions have nearly doubled in past 5 years Source: AML & CTF regime in Australia, Australian Institute of Criminology Report, 2012 LexisNexis Risk & Compliance 5
  • 7. The challenges of customer risk for businesses Key verification challenges • Foreign Governments • Politically Exposed Persons • Foreign Companies Source: AML & CTF regime in Australia, Australian Institute of Criminology Report, 2012 LexisNexis Risk & Compliance 6
  • 8. The hard labour of due diligence Two-thirds of Australian businesses are reliant on manual due diligence processes 48% of AU & NZ organisations do not have any formal policy or compliance program to manage corruption risks. Source: AML & CTF regime in Australia, Australian Institute of Criminology Report, 2012 LexisNexis Risk & Compliance 7
  • 9. How can companies improve their due diligence processes? The three elements of effective due diligence processes Identity Sources of Beneficial Group Incorporation1 IDENTIFY documents wealth & funds ownership structure documents Company Negative Sanctions & PEP Legal2 VERIFY watchlists Lists structure & ownership cases news monitoring Negative3 MONITOR Sanctions & watchlists PEP Lists news monitoringONBOARDING ONGOING LexisNexis Risk & Compliance 8
  • 10. How can companies improve their due diligence processes? The three elements of effective due diligence processes Identity Sources of Beneficial Group Incorporation1 IDENTIFY documents wealth & funds ownership structure documents LexisNexis Risk & Compliance 9
  • 11. How can companies improve their due diligence processes? The three elements of effective due diligence processes Identity Sources of Beneficial Group Incorporation11 IDENTIFY documents wealth & funds ownership structure documents Company Negative Sanctions & PEP Legal2 VERIFY watchlists Lists structure & ownership cases news monitoring LexisNexis Risk & Compliance 10
  • 12. How can companies improve their due diligence processes? LexisNexis Diligence assists in cost-effective, authoritative verification and monitoring of critical information sources Identity Sources of Beneficial Group Incorporation11 IDENTIFY documents wealth & funds ownership structure documents Company Negative Sanctions & PEP Legal2 VERIFY watchlists Lists structure & ownership cases news monitoring Negative3 MONITOR Sanctions & watchlists PEP Lists news monitoringONBOARDING ONGOING LexisNexis Risk & Compliance 11

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