2024 Global Economic Crime Survey Highlights Increasing Complexity of Risks
The 2024 Global Economic Crime Survey conducted by PwC reveals that economic crime is on the rise, with nearly two-thirds of executives reporting an increase in economic crime. The survey highlights the importance of ongoing monitoring of third parties and addresses the growing concerns of forced labor and human rights risks.
Key Findings
Economic Crime on the Rise
- 64% of executives report an increase in economic crime
- 44% cite an increase in the past year
Bribery and Corruption Remain a Significant Concern
- 76% identify bribery and corruption as a major risk
- 62% cite it as a top-two risk
Third-Party Risks Are Increasingly Important
- 81% believe government efforts to enforce anti-corruption laws are becoming more robust or remaining steady
- Ongoing monitoring of third parties is crucial
Forced Labor and Human Rights Risks Are Growing Concerns
- Rising public scrutiny and regulatory pressure place increased pressure on companies to identify and mitigate risks
- Supply chains must be assessed for forced labor and human rights abuses
Export Controls and Sanctions Are Becoming More Complex
- 59% agree that export controls have grown more complex in the last two years
- Geopolitics drives the regulatory environment
Recommendations from PwC
To address these risks, PwC recommends the following:
Senior Management and Boards Must Take an Active Role
- Prioritize economic crime prevention
- Ensure a robust plan is in place to mitigate risks
Compliance Programs Should Be Regularly Reviewed
- Benchmark against recent regulatory expectations and peer best practices
- Regular review ensures compliance programs remain effective
Risk Assessments Must Be Revisited
- Incorporate leading practices
- Ensure sufficiency of third-party risk management approaches
Data Analytics and Technology Tools Should Be Leveraged
- Collaboration between legal, compliance, and internal audit enhances controls
- Identify areas for improvement using data analytics and technology tools
Conclusion
The 2024 Global Economic Crime Survey provides valuable insights for businesses to understand the economic crime risks they face and take proactive steps to mitigate them. By following PwC’s recommendations, companies can prioritize economic crime prevention and ensure a robust plan is in place to address these increasing complexities.