Write out risk
State corruption rife worldwide, says bribery watchdog
Nip fraud in the bud
Food shortages put supply chain at risk
Turkey heats up as sourcing hotspot
December 2010 | Angeline Albert
with new anti-corruption legislation will become the most pressing operational
risk for businesses in 2011.
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
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.