New anti-corruption rules put businesses on alert

10 December 2010
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10 December 2010 | Angeline Albert

Compliance with new anti-corruption legislation will become the most pressing operational risk for businesses in 2011.

According to the annual risk report and map, published by consultancy Control Risks, efforts to tackle dishonesty will become a key boardroom agenda item as regulators become more rigorous in attempts to expose corruption. The report described the UK’s new Bribery Act, which comes into force next April, as “the toughest enforcement regime in any jurisdiction”.

Richard Fenning, the CEO of Control Risks, said: “Organisations will need a fuller understanding than ever before of the complexity of their operating environments, and of effective risk mitigation strategies and procedures. For those prepared to embrace the best standards of risk mitigation, 2011 has the potential to offer rewarding opportunities.”

The report also found Turkey is the emerging market for buyers to watch for opportunities. It said the country offered strong potential returns on investment as it consolidates its position as a rising power in the “near east”. The map gives the country a low security risk and medium political risk profile.

Although the country’s prospects for quick accession to the EU have faded, Control Risks said Turkey has found a new role as a regional trading and diplomatic hub, underpinned by a popular government that has been in power for eight years.

A foreign policy strategy of “zero problems with neighbours” gives it power as an intermediary between the West and middle East, and it has increased its importance as an “energy bridge”, with projects such as the Nabucco pipeline that connects central Asia to western Europe.

Turkey was highlighted as a potential future hub for low-cost sourcing by buyers in 2008. The country’s proximity to Western Europe, strong infrastructure and skilled workforce were all mentioned as benefits.

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