《普華永道（PwC）：2024全球經濟犯罪調查-印度展望報告-智對風險謀求發展（英文版）（23頁）.pdf》由會員分享，可在線閱讀，更多相關《普華永道（PwC）：2024全球經濟犯罪調查-印度展望報告-智對風險謀求發展（英文版）（23頁）.pdf（23頁珍藏版）》請在三個皮匠報告上搜索。

1、Addressing risks smartly to survive and thrivePwCs Global Economic Crime Survey 2024 India outlook2|PwC PwCs Global Economic Crime Survey 2024 India outlookCompanies worldwide are facing and fighting economic crime in diverse forms.According to PwCs Global Economic Crime Survey 2024 conducted earlie

2、r this year,59%of the organisations surveyed in India said they had faced financial or economic fraud in the past 24 months.While a majority of them said they were taking measures to safeguard their businesses,doing so intelligently is critical for meeting tomorrows challenges.About the surveyPwCs G

3、lobal Economic Crime Survey 2024 analysed the responses of 2,446 heads of organisations across the world,of which 91 were from India,on the most disruptive economic crimes affecting their sector and ways of mitigating risks of fraud and non-compliance.More than 50%of the respondents held top positio

4、ns and comprised board members,CEOs,managing directors and presidents.Respondents in India represented 91 organisations spanning a wide spectrum of industries including consumer products and retail,industrial and manufacturing,automotive,technology and healthcare.3|PwC PwCs Global Economic Crime Sur

5、vey 2024 India outlookI.Rise in economic crimes in IndiaII.Preventing economic crimes 1.Procurement fraud Indias primary concern 2.Raising the bar on corporate compliance to counter corruption and bribery3.The risk of forced labour behind multi-tiered and opaque supply chains4.Looking beyond borders

6、 to navigate risks associated with export controls and sanctions III.Safeguarding against economic crimes Table of contents0610182632364|PwC PwCs Global Economic Crime Survey 2024 India outlook5|PwC PwCs Global Economic Crime Survey 2024 India outlookRise in economic crimes in India I.7|PwC PwCs Glo

7、bal Economic Crime Survey 2024 India outlook6|PwC PwCs Global Economic Crime Survey 2024 India outlook9|PwC PwCs Global Economic Crime Survey 2024 India outlookThis percentage has increased as compared to the results of our previous survey in 2022,where 52%of Indian organisations had stated that the

8、y experienced fraud or economic crime within the last 24 months.1 Has your organisation experienced any fraud,corruption or other economic/financial crime in the last 24 months?While companies have introduced some intelligent measures to safeguard against economic crime,there is still considerable g

9、round to cover.1 https:/www.pwc.in/assets/pdfs/consulting/forensic-services/pwcs-global-economic-crime-and-fraud-survey-2022-v3.pdfIn todays interconnected world,opportunities often come riding on risks.The free flow of capital,goods and services across international borders,in addition to creating

10、opportunities,throws up its share of challenges.In these times,a persistent and pervasive challenge that businesses have to routinely deal with is economic crime.As companies enter new markets,there is a greater risk of bribery and corruption.Geopolitical conflicts in Europe and West Asia have disru

11、pted supply chains and intensified the risks of sanctions and export controls.Procurement fraud is another matter of serious concern.Furthermore,there is widespread global concern over forced labour and environmental,social and governance(ESG)responsibilities.Long supply chains and the use of third

12、parties also call for increased vigilance.Mitigating risks,and doing so intelligently,is imperative for sustainable businesses.With this objective in mind,PwC conducted its annual Global Economic Crime Survey 2024 with 2,446 respondents,including CEOs and managing directors as well as investigation,

13、risk and compliance heads.The spectrum of questions posed to the top business leaders was meant to assess the threat of economic crime and gauge how companies were dealing with it.In India,company heads across 91 organisations were asked questions on the most disruptive economic crimes impacting the

14、ir respective sectors and ways of mitigating risks of fraud and non-compliance.The India respondents stressed that economic fraud was rampant in the country.Their perception of this threat to their businesses was higher than that of their global counterparts.About 59%executives in India said their c

15、ompany had faced some form of financial or economic fraud in the past 24 months,as against 41%executives in global companies.8|PwC PwCs Global Economic Crime Survey 2024 India outlook37%53%59%41%IndiaGlobalYesNoYesNoPreventing economic crimesII.Procurement fraud Indias primary concern 1.Nearly 50%of

16、 senior executives surveyed in India cited procurement fraud as the biggest problem faced by businesses,while 44%of global leaders highlighted cybercrime as the top concern.10|PwC PwCs Global Economic Crime Survey 2024 India outlook11|PwC PwCs Global Economic Crime Survey 2024 India outlookThe types

17、 of risk faced by Indian companies have been evolving over time.In 2022,customer fraud(i.e.frauds involving mortgage,claims,credit cards,cheques)was the top fraud reported by 47%of the surveyed companies.2 But in this years survey,procurement fraud has surpassed customer fraud as the biggest risk In

18、dian companies need to safeguard against.Procurement fraud,or illegal manipulation of the procurement process for financial gain,is one of the oldest forms of economic crime,impacting large and small businesses alike.This year,5 out of 10 respondents believe that it is a major concern in India.India

19、Global2%6%3%6%8%9%19%14%9%10%29%21%44%24%39%29%6%6%7%9%11%13%17%17%19%24%30%33%33%37%50%Government relief fraudOthersESG reporting fraudTax fraudInsider/unauthorised tradingAnti-competitive practicesDeceptive business practicesHuman resources fraudAccounting/financial statement fraudIntellectual pro

20、perty theftAsset misappropriationSupply chain fraudCybercrimeBribery and corruptionCustomer fraudProcurement fraudIn PwCs 2022 Global Economic Crime and Fraud Survey,procurement fraud ranked fifth(26%)among economic crimes faced by companies in India.In the 2024 survey,about 50%of senior executives

21、in India cited it as the biggest problem businesses faced,with 39%describing it as the most disruptive economic crime.In contrast,only 29%of global companies that had faced economic fraud in the past 24 months flagged procurement fraud as a major concern.For 44%of global leaders,cybercrime emerged a

22、s the top concern.2 https:/www.pwc.in/assets/pdfs/consulting/forensic-services/pwcs-global-economic-crime-and-fraud-survey-2022-v3.pdf13|PwC PwCs Global Economic Crime Survey 2024 India outlookWhat types of fraud,corruption or other economic crime has your organisation experienced in your country wi

23、thin the last 24 months?12|PwC PwCs Global Economic Crime Survey 2024 India outlookProcurement fraud is clearly a growing problem,with respondents referring to it as the most serious and disruptive economic crime businesses face in India.Usually difficult to detect,procurement fraud can crop up at a

24、ny stage of business from the time of bidding to the point of delivery of goods and services and assume different forms:inflated or fake invoices buyer-supplier collusion when a conflict of interest is not declared,such as a link between an employee from the buyer organisation and the vendor changin

25、g specifications of goods and services,which may not be in the best interest of an organisation and may favour a particular bidder in return for a kickback.The adverse impacts of procurement fraud are well established.These may include:financial losses compromise in the quality of goods and services

26、 delivered disrepute to the organisation legal consequences.1%1%5%5%5%3%7%13%7%8%18%14%17%40%31%22%4%6%6%7%7%7%11%13%15%22%26%30%33%39%Government relief fraudESG reporting fraudAnti-competitive practicesOthersInsider/unauthorised tradingTax fraudIntellectual property theftDeceptive business practice

27、sAccounting/financial statement fraudHuman resources fraudAsset misappropriationSupply chain fraudBribery and corruptionCybercrimeCustomer fraudProcurement fraudIndiaGlobal15%32%55%81%IndiaGlobalYesNoYesNoProcurement fraud cuts across industries and processes,being one of the most disruptive economi

28、c crimes.The integrity of the procurement process is of paramount importance,as a companys reputation rests on it.Puneet GarkhelPartner and Leader,Forensic Services15|PwC PwCs Global Economic Crime Survey 2024 India outlook14|PwC PwCs Global Economic Crime Survey 2024 India outlookOf the fraud,corru

29、ption or other economic/financial crimes experienced by your organisation in the last 24 months,which three matters were MOST disruptive/serious in terms of the impact on your organisation(monetary or otherwise)?Asked to those who indicated they had experienced fraud in their country.Is procurement

30、fraud a widespread concern amongst businesses?16|PwC PwCs Global Economic Crime Survey 2024 India outlookIndian companies have increasingly been using data analytics to identify procurement fraud,waste or abuse.In the survey,52%of respondents said they analysed their transactions before a deal was c

31、losed,while 46%said it was done after the deal.However,only 37%of the respondents said they utilised data analytics to monitor payments in real time,with the ability to block outgoing payments.Advanced transaction monitoring solutions that use sophisticated algorithms and machine learning technology

32、 to detect suspicious activities and patterns in procurement transactions can identify potential fraud.Combined with graph analytics,such solutions could help understand and analyse the complex relationships among entities such as suppliers,employers and third parties.Data analytics can also be leve

33、raged to Although there is a pressing need for organisations to quantify their losses to procurement fraud,most companies said they did so infrequently if at all.56%35%9%54%32%14%YesNoUnsure/dont knowYesNoUnsure/dont knowIndiaGlobal44%55%58%66%67%80%26%40%53%56%60%71%Leveraging data analytics to ide

34、ntify unusual bid patternsUtilising a centralised function to resolve escalations of pricing discrepenciesor signs of fraud or improper paymentsImproving anti-fraud training for procurement personnelAdopting a robust conflict of interest policyRevising the vendor selection processStrengthening proce

35、sses to confirm adequate documentation and proper authorisationsGlobalIndiaBusinesses must assess the role of third parties such as vendors,suppliers,distributors or customers,and companies acting on their behalf.PwCs survey highlights the confidence of business heads in India in this regard:52%resp

36、ondents said they were Examining the role of third parties to mitigate procurement fraud risks Using data analytics for fraud detectionconfident their company had a complete and accurate understanding of the third parties involved,while 26%said they were very confident.Moreover,56%respondents in Ind

37、ia said their third-party management programme included risk-scoring of third parties.highlight anomalies such as an abnormal rise in invoice volumes,discrepancies between purchase orders and deliveries,multiple payments to vendors without any corresponding services rendered,unusually low or high bi

38、d prices,and a sudden rise in consumer complaints.Our survey found that a majority of the companies identified and prevented procurement fraud by:strengthening processes revising vendor selection processes adopting robust conflict of interest policies training procurement personnel.Only 44%Indian re

39、spondents used data analytics to identify unusual bid patterns.Does your organisations third-party risk management programme include risk-scoring of its third parties?What steps,if any,is your organisation taking to mitigate the risk of procurement fraud?In addition to being instrumental in conducti

40、ng third-party risk assessments,data analytics plays a crucial role in fraud investigations.17|PwC PwCs Global Economic Crime Survey 2024 India outlookRaising the bar on corporate compliance to counter corruption and bribery2.About 82%of respondents in India said they were confident or very confiden

41、t about their companys compliance programmes to mitigate corruption risks.On the global front,77%business leaders said they were confident or very confident about their companys efforts in this regard.19|PwC PwCs Global Economic Crime Survey 2024 India outlook18|PwC PwCs Global Economic Crime Survey

42、 2024 India outlook21|PwC PwCs Global Economic Crime Survey 2024 India outlookThe strengthening of anti-corruption laws and their robust implementation has been encouraging news for corporate houses.In India,nearly 63%of business leaders stated the laws were now more robust in the country.Although s

43、trict law enforcement may be a strong deterrent,our survey findings indicate that is About 20%of company heads in India believed corrupt practices i.e.those associated with corrupt or improper payments to government officials and/or 1%12%53%29%5%2%17%58%19%4%Not at all confidentNot confidentConfiden

44、tVey confidentUnsure/dont knowIndiaGlobal63%27%Becoming more robustStaying the same41%41%4%Becoming less aggressive11%5%Unsure/dont know8%IndiaGlobalnot quite adequate to mitigate risks.About 33%of all economic crimes are related to corruption and bribery,while 26%of the respondents in India found i

45、t to be one of the top three disruptive economic crimes in the past 24 months in their respective mercial customers had increased in the past 12 months,while 34%said corruption had decreased.20|PwC PwCs Global Economic Crime Survey 2024 India outlookHow confident are you that your organisations comp

46、liance programme is capable of mitigating emerging corruption risks?How are government efforts to enforce anti-corruption laws changing?IndiaGlobal20%31%34%IncreasingStaying the sameDecreasing26%43%13%In your opinion,were risks associated with corrupt or improper payments to government officials and

47、/or commercial customers in the last 12 months?To tackle corruption,companies need to first recognise the core problem and then address it.The surveyed executives said they were aware of corruption and were seeking to mitigate it.Risk-scoring,third-party management and investigations are essential i

48、f companies have to fight corruption in their ecosystem.However,a majority of those surveyed either did not According to the survey,in India,while most companies were concerned about the threats posed by corruption and bribery,34%of companies did not even conduct anti-corruption/anti-bribery audits

49、of third-party vendors.Furthermore,24%said they had not done so in the 2%10%Yes and corruption risk is a factor in that scoring process24%18%Yes,but corruption risk is not a factor in that scoring processNo,we do not risk-score each of our third partiesNo,we dont have a third-party risk management p

50、rogrammeUnsure/dont knowIndiaGlobal27%29%33%30%13%13%Developing a framework to risk-score third parties to mitigate risks associated with corruption and briberyrisk-score each of their third parties or did not have corruption as one of the factors in risk scoring.In India,some(13%)did not even have

51、a third-party risk management programme.Only one-third(33%)of the respondents had a risk-scoring programme,with corruption risk as a factor in the scoring process.past two years and 10%said they had never conducted such an audit.About 35%said such an audit had been conducted in the past two years.Th

52、e situation was not very different globally only 18%of respondents said such audits had been conducted in the last two years.23|PwC PwCs Global Economic Crime Survey 2024 India outlook22|PwC PwCs Global Economic Crime Survey 2024 India outlook35%24%10%7%18%28%23%11%No,I cannot recall our organisatio

53、n conducting such audits in the last two yearsNo,I cannot recall our organisation ever conducting such auditsUnsure/dont knowIndiaGlobalYes,we regularly conduct anti-bribery/anti-corruption audits of numerous third parties24%19%Yes,but such anti-bribery/anti-corruption audits of third parties are ra

54、reDoes your organisation assign a risk score to each of its third parties as part of its third-party risk management programme?Has your organisation conducted an anti-bribery/anti-corruption audit at one or more of its third parties in the last two years?However,nearly half of the organisations surv

55、eyed in India(49%)mentioned that they had reviewed their investigation process in the past 12 months,while 27%had done so a year/two years ago.4%49%27%11%16%39%20%9%Our organisation does nothave an investigations functionWithin the last12 months1-2 years agoThree years or more agoIndiaGlobalWhen was

56、 the last time your organisation reviewed its investigation process?25|PwC PwCs Global Economic Crime Survey 2024 India outlookAlso,in India,46%said that following instances of corruption,their organisation always or very often conducted a root cause analysis.The lessons learnt from this exercise we

57、re applied to improve the Using data analytics has proved to be a game changer in detecting and measuring corruption.About 47%of those surveyed in India revealed that they leveraged a data aggregation tool or technology for both compliance monitoring and providing insights to improve programme 46%37

58、%11%2%44%27%12%9%Yes,always or very oftenYes,but infrequentlyYes,we conduct root cause analysis but often miss opportunities to apply lessons learned to improve our compliance programmeNo3%7%Unsure/dont knowIndiaGlobal43%47%10%2%35%41%23%10%Ad hoc retrospective analysis of transactionContinuous moni

59、toring of certain transaction types47%26%By leveraging data aggregation tool or technology to both enable compliancemonitoring and provide insights to improve programme effectivenessDo not use data analytics to support the compliance functionUnsure/dont knowIndiaGlobalcompanys compliance programme.H

60、owever,nearly 11%said that even after such an analysis,their company often failed to leverage the insights to avoid such instances in the future.Detecting and measuring corruption with data analyticseffectiveness.While 47%used data analytics in the continuous monitoring of certain types of transacti

61、ons,43%used it for the ad hoc retrospective analysis of transactions.Whistleblowers have a role to play in exposing corruption,and therefore need to be protected.Puneet GarkhelPartner and Leader,Forensic ServicesFollowing instances of fraud,bribery or other improper conduct,does your organisation ro

62、utinely conduct root cause analysis and apply lessons learned to improve your organisations compliance programme?How does your organisation use data analytics in support of its anti-corruption compliance objectives?24|PwC PwCs Global Economic Crime Survey 2024 India outlookThe risk of forced labour

63、behind multi-tiered and opaque supply chains3.Nearly 26%of those surveyed in India did not know if forced labour was a priority for their company;19%reported that while they considered it a priority,there were no plans of assessment yet.27|PwC PwCs Global Economic Crime Survey 2024 India outlook26|P

64、wC PwCs Global Economic Crime Survey 2024 India outlook28|PwC PwCs Global Economic Crime Survey 2024 India outlook29|PwC PwCs Global Economic Crime Survey 2024 India outlookFrom manufacturing to fashion,hospitality to domestic work,agriculture to the seafood industry,forced labour is an all-pervasiv

65、e issue.According to the International Labour Organization(ILO),forced labour includes withholding of wages,abusive working and living conditions,excessive overtime,restriction of movement,and deception.3 The ILO estimates that 27.6 million people were in forced labour across the world and 17.3 mill

66、ion were engaged in the private sector.4 This hard-to-see economic crime often hides behind complex,multi-tiered and opaque supply chains that may span countries.PwCs survey found that the risk of forced labour was a priority for 16%of the companies in India,while 24%had either assessed or were in t

67、he process of assessing 14%5%4%5%18%25%27%23%15%11%6%9%14%22%Unsure/dont knowNo,and we have no plansto map our supply chainNo,but we expect to begin theprocess in the next 12 monthsYes,beyond our Tier 3 suppliersYes,down to our Tier 3 suppliersYes,down to our Tier 2 suppliersYes,to our Tier 1 suppli

68、ersGlobalIndiaIn India,about 35%of respondents said they conducted third-party audits because they thought it was the right thing to do.Law enforcement and regulatory investigations prompted 23%of respondents to GlobalIndia4%03%8%5%14%7%23%35%8%4%2%7%8%9%11%26%26%Unsure/dont knowNone of the abovePre

69、ssure from non-government organisationsAdverse publicity about your industrys supply chain practicesPressure from shareholdersPressure on management from the boardAdverse publicity about your companys supply chain practicesLaw enforcement or regulatory investigation of your companyBecause it is the

70、right thing to do3 https:/www.ilo.org/sites/default/files/wcmsp5/groups/public/ed_norm/declaration/documents/publication/wcms_203832.pdf4 International Labour Organization,Data on forced labourIn India,many companies have introduced supply chain mapping,though only 5%went beyond tier 3 suppliers.Abo

71、ut 52%have mapped their supply chains to tier 1 or tier 2 suppliers.To assess the compliance of their the risk.However,the concerning part is that 26%did not know if it was a priority for their company and 19%reported that while they considered it a priority,there were no plans of assessment yet.Nev

72、ertheless,there is growing awareness among businesses that consequences of non-compliance with forced labour laws can result in more than financial penalties.Non-compliant companies can face civil and criminal penalties,lose market opportunities,and face restrictions and bans on their products.To th

73、is end,companies have realised that they need to keep a close watch on their supply chains,conduct regular audits to mitigate third-party risks and thoroughly investigate any allegations of non-compliance.Mapping supply chains to mitigate the risk of forced labourthird parties with forced labour reg

74、ulations,59%of the surveyed companies conducted audits,but only 27%did so regularly.Has your organisation mapped its supply chain?Which of the following would lead your organisation to implement a robust programme of third-party audits regarding forced labour?conduct audits,while many others said th

75、ey did so under pressure from the board or shareholders,or fear of adverse publicity.30|PwC PwCs Global Economic Crime Survey 2024 India outlook31|PwC PwCs Global Economic Crime Survey 2024 India outlookPwCs survey also tried to gauge the impact of the EUs Corporate Sustainability Reporting Directiv

76、e(CSRD)on Indian companies.This set of standards,which came into effect in January 2024,requires companies to disclose a broad range of sustainability information,including human rights Industry leaders believe that it is in the interest of Indian companies to align with the EUs CSRD.In fact,the Sec

77、urities and Exchange Board of India(SEBI)26%27%27%19%Yes and we are impactedYes and we are not impactedHave not studied CSRDI have never heard of CSRD28%22%26%24%Yes and we are impactedYes and we are not impactedHave not studied CSRDI have never heard of CSRDIndiaGlobalAbout 27%sent regular updates

78、to their boards on investigations into forced labour practices in the supply chain.84%77%40%42%27%1%8%71%60%41%26%20%12%9%FraudBribery andcorruptionSanctionviolationsExportcontrolviolationsForcedlabour in yoursupply chainNone ofthe abovePrefer notto answerIndiaGlobalThe need for companies with subsi

79、diaries or business operations in the European Union(EU)to align with global reporting standards and forced labour issues.Non-compliance is likely to affect companies which have subsidiaries or business operations in the EU.Although 26%of our survey respondents in India reported that their organisat

80、ion was impacted by the CSRD,46%had not heard of or studied it so far.has already established Business Responsibility and Sustainability Report that encourages Indian companies to voluntarily disclose ESG-related information.Does your board receive regular updates on your organisations efforts to in

81、vestigate allegations of and/or mitigate the risk of the following incidents:(asked to those who indicated that they present to the board often or occasionally)Has your organisation concluded whether it is impacted by CSRD?Looking beyond borders to navigate risks associated with export controls and

82、sanctions 4.Nearly 74%of respondents in India said their companies had a robust export controls risk assessment process.33|PwC PwCs Global Economic Crime Survey 2024 India outlook32|PwC PwCs Global Economic Crime Survey 2024 India outlook34|PwC PwCs Global Economic Crime Survey 2024 India outlook35|

83、PwC PwCs Global Economic Crime Survey 2024 India outlookCompanies need to look beyond their borders or realm of operation in order to deal with issues pertaining to export controls and sanctions.Geopolitical tensions in various regions across the globe have highlighted the need for government action

84、 in these areas and further added to the complexity of corporate compliance.*Testing steps:These include reviewing our policies and procedures,confirming that staff are dispositioning sanctions alerts and cases correctly via testing and/or QA/QC,and testing our sanctioned systems,including data line

85、age and system performance.38%49%1%5%7%30%41%12%7%9%We undertake a range of testing steps*Our testing is primarily focused on reviewing policies and procedures andconfirming that alerts and cases are dispositioned correctlyWe do not regularly test our firms sanctions complianceprogramme,as we know o

86、ur assessed sanctions to be lowWe do not have a testing function/do not regularly testour firms sanctions compliance programmeUnsure/dont knowIndiaGlobal47%19%19%10%05%43%22%13%12%1%10%Third parties(e.g.vendors,third-party distributors)conducting activitythat may not be permissible,creating sanction

87、s risk for our organisationDirect customers engaging in activity that could violate sanctions,using our business servicesOur business operations in certain high-risk jurisdictions(e.g.known and identified transshipment countries)Inadequate processes or technologies failing to properly identify poten

88、tially prohibited activityOther(please specify)Unsure/dont knowIndiaGlobalKeeping in mind the legal risks of non-compliance,boards must regard trade control compliance as a top priority.In 48%of the companies surveyed in India,the board or senior leadership were regularly briefed on sanction-related

89、 risks,and key elements of the compliance programme were reviewed.To test the Most respondents said that governments in many countries were enforcing robust export controls.Nearly 75%of companies stated that managing risks associated with export controls was a priority in their industry,while 76%agr

90、eed that it was a priority in their own company.Prioritising trade control compliance strength of their sanctions compliance,49%said their approach focused on reviewing policies and procedures and confirming that alerts and cases were dispositioned correctly.In addition to these,38%tested their sanc

91、tion systems,including data lineage and system performance.Which of the following best describes your organisations approach to testing the strength of your sanctions compliance programme?(asked to those who indicated they had a sanctions risk compliance process)Which of the following do you think p

92、oses the greatest sanctions compliance risk for your organisation?To what extent is sanctions risk compliance a priority within your organisation?IndiaGlobal44%36%10%10%44%24%16%15%Significant priority-we have a team dedicated to confirming our organisationaddresses sanctions risk complianceModerate

93、 priority-we have a nominated team which comes together on a regular basis to address sanctions risk complianceLow priority-we have an informal team which meets on an ad-hocbasis to address sanctions risk compliance as and when any issue arisesNot currently a priority-there is no formal sanctions ri

94、sk compliance process within the organisationSafeguarding against economic crimes III.About 62%of companies surveyed in India said that they had conducted an enterprise-wide fraud risk assessment in the past 12 months.Another 15%were planning such an exercise in the next 12 months.37|PwC PwCs Global

95、 Economic Crime Survey 2024 India outlook36|PwC PwCs Global Economic Crime Survey 2024 India outlook38|PwC PwCs Global Economic Crime Survey 2024 India outlook39|PwC PwCs Global Economic Crime Survey 2024 India outlookConsidering the rise in economic fraud,some companies have been taking proactive m

96、easures to prevent crime.Thus,due diligence with background checks of third parties i.e.vendors,suppliers,distributors,customers and others acting on a companys behalf is crucial.These checks can ensure transparency in the business deals of associates,highlighting their interests,associations,relate

97、d parties and possible conflicts of interest.In India,78%of respondents said they were confident or very confident that their organisation had a complete and accurate understanding of all its third parties,while 16%said they were not confident.Third-party risk management programmes,including risk-sc

98、oring of third parties,were marginally higher in India at 56%than the global level of 54%.Internal investigation processes help companies recognise and address corruption.However,while it is of utmost importance to have such processes in place,it is equally important to review them thoroughly.Compan

99、ies are also aware that quantifying losses would be a motivating factor in preventing fraud.About 42%India leaders said their companies attempted to quantify 62%15%12%11%59%12%20%10%Yes,my organisation has conducted an enterprise-wide fraud assessment in the last 12 monthsNo,an enterprise-wide risk

100、assessment has not been conducted but one is planned for the next 12 monthsNo,an enterprise-wide risk assessment has not been conducted within the last 12 monthsI am not aware as to whether an enterprise-widerisk assessment has been conductedIndiaGlobal53%27%4%07%53%24%6%3%7%Often-quarterly ormore f

101、requentlyOccasionally-once ortwice a yearInfrequently-once in the lasttwo yearsRarely-morethan twoyears agoNeverIndiaGlobalChecks and balances seem to be in place in the Indian territory.Almost one in every two leaders surveyed said their company had reviewed its investigation process within the pas

102、t 12 months,and another 27%said it had been done within the last two years.Only 4%said that their company did not have an investigation process.The surveys findings also highlighted that companies were regularly updating boards on their organisations efforts to investigate incidents or even allegati

103、ons of fraud.Most companies have realised that they need to keep a close watch on procurement processes to prevent fraud.Nearly 84%of respondents reported that their boards received regular updates on their respective organisations efforts to investigate allegations of fraud and efforts to mitigate

104、such risks.their losses from procurement fraud annually or even more frequently,while 34%stated it was infrequent or done on an ad hoc basis.Has your organisation conducted an enterprise-wide fraud risk assessment in the last 12 months?How often do you present to your organisations Board of Director

105、s?It is important for companies to look within and outside to be able to effectively tackle economic fraud and financial crime.The survey zeroed in on some key measures that are being adopted,and ones that may be strengthened:Conduct internal investigations to recognise and address corruption.Effect

106、ive investigative functions contribute to both risk mitigation and compliance.Boards of directors should direct management to revisit their internal investigation function with a specific focus on collecting and reviewing data,performing root cause analyses and imbibing lessons learned to facilitate

107、 continuous improvement.Identify and reduce risks related to the use of third parties.For higher-risk third parties,companies should consider on-site visits to the third-party facilities to assess their compliance programme and transaction testing from their books and records.Conduct regular enterpr

108、ise-wide fraud risk assessments and improve efforts to risk-score vendors.Refresh risk score more frequently for vendors with the highest risk.42%34%16%22%31%32%Yes,annually/more frequentlyYes,annually/on an ad hoc basisNoIndiaGlobal Increase scrutiny on the use of forced labour and undertake ESG re

109、sponsibilities in companies and supply chains.Carry out social and third-party audits in companies to assess the situation on the ground.Quantify losses as a motivating factor to prevent fraud.Identify risks that plague business processes,and recognise and prevent third-party risks with the help of

110、data analytics.Involve senior executives and boards for effective sanctions compliance.Ensure that they are regularly briefed and made aware of risk indicators,such as increases in sanctions alerts or levels of exposure.Risks are inevitable and an essential part of growth.It is thus imperative for c

111、ompanies to adhere to best practices and identify and address anomalies.Businesses that can foresee risks and take adequate measures to mitigate them are the ones that will gain a competitive edge.Does your organisation attempt to quantify its losses to procurement fraud?How does your organisation u

112、se data analytics to identify procurement fraud,waste or abuse?Companies need to undertake internal investigation processes to recognise and address corruption.41|PwC PwCs Global Economic Crime Survey 2024 India outlook3%2%11%37%53%46%52%8%2%18%29%36%30%44%Unsure/dont knowOthers(please specify)Does

113、not use data analytics for such purposesReal-time monitoring of payments with the ability to block outgoing paymentsPeriodic retrospective analysis of payments madeAnalysis of potential transactions/deals after they have been closedAnalysis of potential transactions/deals before they are closedGloba

114、lIndia40|PwC PwCs Global Economic Crime Survey 2024 India outlook42|PwC PwCs Global Economic Crime Survey 2024 India outlook43|PwC PwCs Global Economic Crime Survey 2024 India outlookAbout PwCAt PwC,our purpose is to build trust in society and solve important problems.Were a network of firms in 151

115、countries with over 360,000 people who are committed to delivering quality in assurance,advisory and tax services.Find out more and tell us what matters to you by visiting us at .PwC refers to the PwC network and/or one or more of its member firms,each of which is a separate legal entity.Please see

116、for further details.2024 PwC.All rights reserved.Contact:Puneet GarkhelPartner and Leader,Forensic SEditorial team:Vishnupriya Sengupta,Megha Adhikari and Rashi GuptaDesign:Harshpal SinghNotespwc.inData Classification:DC0(Public)In this document,PwC refers to PricewaterhouseCoopers Private Limited(a

117、 limited liability company in India having Corporate Identity Number or CIN:U74140WB1983PTC036093),which is a member firm of PricewaterhouseCoopers International Limited(PwCIL),each member firm of which is a separate legal entity.This document does not constitute professional advice.The information

118、in this document has been obtained or derived from sources believed by PricewaterhouseCoopers Private Limited(PwCPL)to be reliable but PwCPL does not represent that this information is accurate or complete.Any opinions or estimates contained in this document represent the judgment of PwCPL at this t

119、ime and are subject to change without notice.Readers of this publication are advised to seek their own professional advice before taking any course of action or decision,for which they are entirely responsible,based on the contents of this publication.PwCPL neither accepts or assumes any responsibility or liability to any reader of this publication in respect of the information contained within it or for any decisions readers may take or decide not to or fail to take.2024 PricewaterhouseCoopers Private Limited.All rights reserved.HS/October 2024-M&C 41762