FOCUS 32
ABOVE ALL, ANTI-BRIBERY PROCEDURES SHOULD BE BUILT AROUND A STRONG AND APPROPRIATE CORPORATE GOVERNANCE FRAMEWORK. RISK
ASSESSMENT IS A BIG, COMPLEX TASK – NOTHING SHOULD BE LEFT TO CHANCE.
Risk assessment
Oil and gas companies need to take a regimented and robust approach to their bribery and corruption risk assessment. A key element of this will be the assessment of their third parties, which can be performed in three stages:
• Identify the complete population of third parties. This raises some diffi cult questions, such as what to do about joint ventures. An understanding of the level of control of a JV, should help dictate the appropriate response to take;
• Rank the third parties according to the level of bribery risk, for example; those acting as intermediaries or agents in governmental interaction are likely to be higher risk.
• Perform due diligence according to the risk categorisation of each third party. The extent of due diligence performed will vary according to the assessment of risk and may include obtaining evidence of corporate structure and registration, research into the reputation, governance and relevant expertise of each third party, any potential confl icts of interest in relationships with government offi cials and others. While this is a complicated procedure, there are tools available to help, such as KPMG’s Astrus due diligence application10
.
The format of the third party risk assessment is not prescribed but what is essential is that the risk assessment should be dynamic and any signifi cant event, such as a new venture or acquisition, should automatically trigger an update. Anti-bribery procedures should be built around a strong and appropriate corporate governance framework which extends to third parties acting on behalf of the company.
A company’s bribery risk assessments (including the assessment of third party risk) should be incorporated into the overall company risk assessment underpinning the entire corporate governance framework. Risk assessment is a big, complex task – nothing should be left to chance.
10
http://www.kpmg.com/uk/en/services/advisory/risk-consulting/services/forensic/pages/astrus-enhanced-due-diligence- and-astrus-monitoring.aspx
Annabel Reoch Director, Anti-bribery and Corruption, Forensic KPMG in the UK T: +44 20 73112463 E:
annabel.reoch@
kpmg.co.uk
© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
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BRIBERY & CORRUPTION
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