6th International Disaster and Risk Conference IDRC 2016 Integrative Risk Management - Towards Resilient Cities. 28 August - 01 September 2016 in Davos, Switzerland

1. International Disaster & Risk Conference
Integrative Risk Management
- Towards Resilient Cities -
Anti Corruption Experiences – Current trends
Davos, August 29 2016

2. Page 2
Introduction
Speaker& background
Speaker
Practice
Pascal Hans
► Zürich based Senior Manager for EY´s Fraud Investigation & Dispute Services/Business
Integrity and Corprorate Compliance Practice
► Focused on Compliance Management Program Audits, Assessment and Advisory
► Performance/Execution of Global Audits on the Design, Approrpriateness and
Effectiveness of Compliance Management Programs for the Risk Area Anti-
Corruption
Fraud Investigation & Dispute Services/
Business Integrity & Corporate Compliance
Anti Fraud &
Compliance
Management
Fraud
Investigation
Business
Intelligence
Dispute
Services
Forensic
Technology
& Discovery
Services
IDRC–AntiCorruption –BreakOut

3. Page 3
Corruption
Why do companies perceive it as a risk?
Manila
Shanghai
Mexico-City
Seoul
Mumbai
São Paulo
Jakarta
Los Angeles
Delhi
Osaka
Calcutta
Moscow
Buenos Aires
London
Cairo
Teheran
Karachi Dhaka
Berlin
Chicago
San Francisco
Toronto
Washington
Rio de Janeiro
Paris
Istanbul Beijing
Madrid
Oslo
Vienna
Sankt-Petersburg
Sydney
Canberra
Perth
Astana
Ulaanbaatar
Samara
Novosibirsk
Anadyr
Cape Town Durban
Windhoek
Mogadishu
Asmara
Accra
Dakar
Niamey
N‘Djamena
Unalaska
Fairbanks
Seattle
New Orleans
San José
Brasilia
Porto Velho
El Goléa
Benguela
Mbuji-Mayi
Maputo
Gibraltar
Dar es Salaam
Harare
La Paz
Santiago
Quito
Lima
Darwin
Melbourne
Wellington
Port Moresby
Tokyo
New York
Examples for:
Corruption
Incidents
Countries with
legal/regulatory
requirements or
guidelines on
dealing with
corruption
The discussion is being driven by incidents, regulators, customers and markets
► ABB, Alcatel-Lucent, BMW, Daimler, ENI,
Ferrostaal, Halliburton, Infineon, IKEA, MAN,
Panalpina, Technip, BAE Systems, Siemens,
Volkswagen and Petrobras
► UKBA
► FCPA
► UN,
OECD
► Standards
such as
ISO, IDW
► Listings/Blacklistings
► (Negative) Reputation
IDRC–AntiCorruption –BreakOut

4. Page 4
Systematicapproach
Howdo companies encounter the risk?
IDRC–AntiCorruption –BreakOut
Companies structure(d) their measures and efforts towards Anti-Corruption by establishing
Integrity and Compliance programs
EY BI&CC Framework

5. Page 5
Futureof Anti-Corruption
What are current anti-corruption trends?
IDRC–AntiCorruption –BreakOut
(1) Focus on “making the business better” – effectiveness and efficiency
►goal
Compliance
and
Integrity
frameworks
 CoreComplianceRisk
managementtool
 Causedbyregulatorypressure,competitorsactivitiesor
noncompliance
 Focusingonkeycorporate
compliancerisks
 SatisfyingStakeholderExpectations
 Reasonableassuranceinbusiness
operations
 Clearrule-basedpolicies
 etc.
 Focusingoncorporatevalues
 Supportcompliantbusinessgrowth
 Fullyintegratedcompliance
functionsinbusinessprocesses
 PracticalandHands-ontraining
 Easy-to-usesupportingmaterials/
providecleardo’sanddon’ts
 OpenComplianceCommunication
 ManagementCommitment
 IncreasedPerformanceandRisk
Management
 etc.
‘Keep UsOutofTrouble’
Thetraditionalmindsetof complianceandethicsis changingfrom ‘keepusoutoftrouble’to includethe expectationof
‘makeourbusinessbetter’.
‘Make ourbusiness better’
Compliance
Performance
Management
Compliance
Risk
Management

6. Page 6
Futureof Anti-Corruption
What are current anti-corruption trends? (cont´d)
IDRC–AntiCorruption –BreakOut
(2) Focus on corporate culture and integrity – value driven compliant behaviour
Compliance Management
External Pressure (e.g. legal or regulatory
requirements)
Aim
Motivation
 Prevent behavior breaking internal and
external regulations
Approach and topics
 Clear rules
 Guidelines
 Controls
 Focus on legal compliance
Integrity Management
Intrinsic Motivation
Aim
Identification of risks in an ongoing process
 Support moral driven actions
Approach and topics
 Values
 Corporate Culture
 Improve effectiveness of legal
compliance as well as integration of
social compliance

7. Page 7
Futureof Anti-Corruption
What are current anti-corruption trends? (cont´d)
IDRC–AntiCorruption –BreakOut
(3) Focus on exploiting technical developments
Understanding whom (third parties) you deal with

8. Page 8
Futureof Anti-Corruption
What are current anti-corruption trends? (cont´d)
IDRC–AntiCorruption –BreakOut
(3) Focus on exploiting technical developments
Making the best of data available

9. Page 9
Futureof Anti-Corruption
What are current anti-corruption trends? (cont´d)
IDRC–AntiCorruption –BreakOut
(4) Understanding whether own efforts (such as setting up programs) effectively address the
risk of corruption

10. Page 10
Thanks for your attention

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