In the past, many chemicals industry executives were under the misconception that fraud “can't happen here in my company.” More recently, however, the industry has seen signs of a culture shift; understanding that fraud does indeed happen, and its results have the potential to damage a chemical company's financial well being, competitive advantage, employee moral, and vendor/supplier relationships.
Our report reviews the incidence, cost (both tangible and intangible), and detection of economic crime in the industry. We stress the importance of the internal audit function and improving internal controls in detecting and deterring economic crime. We also challenge executives to increase openness within their organisations as part of a comprehensive strategy of detecting and deterring fraud.
Other key messages:
- 37% of respondents have experienced some form of economic crime over the past two years
- The incidence of asset misappropriation has declined, however corruption & bribery more than doubled over 2003, and financial misrepresentation also increased
- 43% of serious incidents of fraud were discovered by chance
Publications Search Page
