Bass, Berry & Sims attorneys Wally Dietz and Lindsey Fetzer authored an article for Bloomberg BNA's White Collar Crime Report discussing how an organization can identify and remediate anti-corruption red flags. Anti-corruption red flags are present in nearly any organization with multi-jurisdictional operations. However, the presence of a red flag doesn't suggest that a law has been violated, it is simply a suggestion of heightened risk. It's important for companies to proactively pursue and analyze red flags, and when necessary, correct potential issues.
Early identification of a red flag allows a company to stop problematic or high-risk practices before a trend emerges. Examples of potential anti-corruption risk areas can include hiring practices, political contributions or gifts, travel and entertainment. To identify the presence of risk indicators in these areas, companies can utilize various tools, including implementing risk assessments, encouraging employee and external reporting, and performing routine anti-corruption internal audits.
If a red flag is identified through any of these methods, appropriate follow-up should be conducted. "Based on the severity and credibility of a potential allegation, this could include some type of anti-corruption internal investigation," explained the authors. "A properly scoped and conducted internal investigation can pay dividends to an organization." Following an investigation, the findings should be properly documented, and results should be examined and synthesized.
The full article, "Mitigating Risk: Identifying, Remediating Anti-Corruption Red Flags," was published in the November 24, 2017, edition of the Bloomberg BNA White Collar Crime Report and is available online (subscription required) or in the PDF below.