The mandatory Corporate Sustainability Due Diligence: How to comply?

The European Commission on 23 February 2022 adopted a long-awaited proposal for a Directive on mandatory corporate sustainability due diligence for widely-defined specified “companies”. The proposals cover obligations throughout the value chain and also attach to non-EU companies which meet specific criteria.

Companies need to prepare now both across their own business operations and their value chain to comply with the proposed Directive. While 2024 is the earliest the Directive will come into effect, the lead time will be needed to put compliant measures in place, or to face civil liabilities and significant fines based on turnover.

How does the mandatory corporate sustainability due diligence directive work?

The proposed Directive establishes a corporate sustainability due diligence duty requiring specific companies to identify and, where necessary, prevent, end or mitigate the potential or actual adverse impacts of their activities on human rights and the environment. Companies will have to publicly communicate their findings in an annual report and there are express directors’ duties.  A European Network of Supervisory Authorities will be created to ensure coordination and alignment between Member States, as per a report on cms-lawnow.com 

The proposal recognises the important role that directors will play in this process, such that new directors’ duties are proposed to set up and oversee the implementation and integration of sustainable due diligence into the corporate strategy, and a remunerative incentivisation used to ensure climate change is incorporated within the scope of the corporate plan. A director’s duty to act in the best interest of a company will now include expressly taking into account the human rights, climate change and environmental consequences of their decisions in the near, medium and long term.

Accompanying Measures

Although SMEs are not directly in scope of the proposal, the Commission proposes accompanying measures to support all companies that may be indirectly affected by the broad application of the draft Directive.

Member States are required to ensure that natural and legal persons are entitled to submit substantiated concerns to any supervisory authority when they have reasons to believe, on the basis of objective circumstances, that a company is failing to comply with the national provisions adopted pursuant to the Directive. They are also obliged to establish civil liability regimes where companies are liable for damages if they fail to comply with the due diligence rules and as a result of this failure an adverse impact that should have been identified, prevented, mitigated, brought to an end or its extent minimised through appropriate measures occurs and leads to damage.

Implications of the corporate sustainability due diligence directive

Once the final version of the Directive is transposed, procedures and training will be required to ensure that companies have the requisite systems in place to be able to comply with the obligations and provide such reports. This will involve dialogue throughout the value chain and changes to existing contractual arrangements. Those not directly in scope should also consider their position and potential new requests for information to assist in the due diligence process by others. Once legislation is implemented, non-compliance can result in fines or orders issued requiring the company to comply with the due diligence obligation. Victims could also obtain compensation for damage due to non-compliance with this legislation, says cms-lawnow.com 

The way forward

The proposal will be presented to the European Parliament and the Council for debate. Once a text is agreed, approved, and then adopted, Member States will have two years to transpose it into national law. This initiative is part of a wider corporate sustainability package intended to advance the European Green Deal which also announced an agreed Council position on the Commission’s proposal for a Corporate Sustainability Reporting Directive. 

The German Supply Chain Due Diligence Act

In January 2023 a new German law, known as the Supply Chain Due Diligence Act, becomes effective and applies to companies operating or trading in Germany. The law introduces a legal requirement for businesses to manage social and environmental issues in their supply chains, through more responsible business practices.

The Act requires businesses to undergo significant efforts in order to achieve compliance. In this eBook, we will provide a first outline of the Act’s material contents and an in-depth analysis of the applicability of the Act to various corporate structures.

This eBook is the collection of a series of articles in which we will take a closer look at key issues, especially addressing the question of what you can do to adequately prepare yourself at this early stage. We would be happy to provide you with individual advice, as well. Please do not hesitate to contact us. If you cannot find what you are looking for, please feel free to get in touch with the team! Let’s talk

 

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EU: Can IP infringements cost you your life?

The Intellectual Property Commission estimates that IP infringements in the form of counterfeit goods, trade secret theft, and pirated software costs the US economy $225 billion to $600 billion.

Following the outbreak of the COVID-19 pandemic in late 2019 and its subsequent spread around the world, counterfeiters have turned their attention to producing fake testing kits, counterfeit personal protection equipment and, even before the authorities have approved treatments, fake medicines purporting to cure the disease, according to the 2020 status report by the European Union Intellectual Property Office (EUIPO) and the Organisation for Economic Co-operation and Development (OECD).

The joint report on counterfeit medicines showed that not only ‘lifestyle’ medicines but also medicines to treat serious diseases, including antibiotics, cancer therapies or heart disease medications, are subject to being counterfeited, with potentially deadly consequences for the patients who consume those medicines.

This report underlines the importance of IP rights to the EU economy and, therefore, to any recovery from the Covid-19 crisis, which has dominated the first half of 2020 and threatens to have long-lasting effects. It brings together the findings of the research carried out in recent years by the EUIPO, through the European Observatory on the infringement of Intellectual Property Rights, on the extent, scope and economic consequences of Intellectual Property Right (IPR) infringement in the EU.

The Status Report also contains research on the volume of counterfeit and pirated goods in international trade and the economic contribution of intellectual property-rights intensive industries to economic growth and jobs.

How the CRI® Group can help you tackle IP infringement

CRI® Group’s Intellectual Property Investigations team helps companies identify threats to IP and confidential information internally and throughout their supply chain, develop the appropriate mitigation strategies and investigate suspected infringements.

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For further information on IPR infringement or to book a meeting with our experts, click here.

Meet our IPR Infringement Investigation Manager

Mahamad Thouhid – e: mahamad.thouhid@crigroup.com – is an experienced Investigations Specialist with a demonstrated history of working in the investigations and intelligence industry. Skilled in investigative planning and reporting, delivering innovative IP/Brand protection (Anti Counterfeit, Products tampering, Anti diversion and Infringement), OSINT, law enforcement, liaison with Govt. Authorities, operations management, due diligence, etc.


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Employee Background Screening: Fake CV lands a top NHS job… are your employees telling the truth?

Is Employee Background Screening as critical as they make it out to be?

A former builder who faked his CV to land a series of top NHS jobs has finally been forced to pay the full price for his ‘staggering lies’, says a shocking report on timesnewsuk.com/

Jon Andrewes, 69, spent a decade working as chairman of two NHS trusts and chief executive of a hospice after pretending to have a PhD, an MBA and a history of senior management roles. Mr Andrewes had been appointed chairman of the Royal Cornwall Hospitals NHS Trust (RCHT) ahead of 117 other candidates.

After Andrewes was exposed he was convicted of fraud, jailed for two years and ordered to hand over all his remaining assets of £96,737. But the confiscation order was overturned by the Court of Appeal two years ago when judges ruled he had given ‘full value’ for his salary in the jobs he did. Now, more than five years after pleading guilty to fraud charges, Andrewes has had the financial penalty reinstated by the Supreme Court and must pay back nearly £100,000. 

Under his fake persona, Andrewes insisted on staff calling him ‘Dr’ and claimed to have degrees from three universities. But his only genuine higher education qualification was a certificate in social work. After starting as a builder he spent much of his career as a probation officer, customs officer or youth worker before inventing a new life for himself as an NHS manager.

His senior health jobs, which included a £75,000-a-year role as chief executive of a hospice in Taunton, earned him £643,602. He was appointed in 2004. He then led the Torbay NHS Trust in Devon for nearly a decade, before becoming chairman of the Royal Cornwall NHS Hospital Trust in 2015. 

However, an investigation at the hospice uncovered discrepancies in his CV and led to police being called in. ‘He came across as very knowledgeable and competent,’ recalled David Shepperd, former head of legal services at Plymouth City Council, who liaised closely with Andrewes on a council-funded green project. ‘He was an affable, nice guy to deal with.’

‘It beggars belief that no due diligence was carried out when he was appointed to these roles in the NHS,’ says an NHS source, quoted in the timesnewsuk.com report.

LOOKING FOR UK SCREENING?

The UK Screening Module covers:

  • Identity Check: An independent check to authenticate an individual’s identity using various sources of stated data.
  • Regulated Employment History & References: Regulated employment references to confirm previous employment details.
  • Academic Qualifications: Confirmation of highest academic qualification, including details of institution and dates attended.
  • Professional Qualifications: Confirmation of latest or most relevant Professional or Trade Memberships.
  • FSA Register Search against the UK Financial Services Authority Individual Register and Prohibited Persons Register
  • UK Credit Check Check to determine the general credit worthiness of the candidate.
  • Directorship Search: Search for UK Directorships and any disqualifications.
  • Negative Media Search: Search of press and other media focusing on derogatory information only.
  • Compliance Database Check: Search for inclusion in governmental sanctions, enforcements, watchlists, blacklists and criminality.
  • Criminal Record Checks — Standard Disclosure: A check of all convictions held on the PNC.

More details on the UK Screening Module can be had here.

A business must understand its exposure when hiring and type of insurance coverage and limits – does your policy cover a negligent hiring lawsuit? The checks are critical to any company’s success – hiring qualified, honest, and hard-working employees is an integral part of thriving in the business community.

DOWNLOAD THE EMPLOYEE BACKGROUND SCREENING FAQs HERE

CRI® Group announces Webinars on key aspects of Due Diligence Investigations

The CRI Group is hosting a series of webinars on Due Diligence Investigations. The insightful webinars will help you go deep into crucial aspects of Due Diligence Investigations with lessons learned by industry leaders in various areas of business and best practices that you should adopt.

Details:

Webinar 1: Web-based or On-site due diligence investigation: When and why do you need it? And who’s going to need it?

  • Duration: 1h 15 min (1h sharing followed by 15 min Q&A)
  • Date: 15 September 2022, Thu
  • Time: 11.00am – 12.15pm UAE
  • Speaker: Ashelea + Kevin (TBC)
  • Format: Webinar
  • Platform: MS Teams

Learning points:

  • Web-based or on-site, or both? Which methods provide robust validity and trust to the information being investigated?
  • How is a web-based due diligence investigation conducted?
  • How is an on-site due diligence investigation conducted?
  • How extensive does the due diligence investigation be with the web-based and on-site?
  • When is a web-based due diligence investigation adequately required? And who will need it?
  • When is on-site due diligence investigation adequately required? And who will need it?
  • When are both web-based and on-site due diligence investigations required? And who will need it?
  • What are the types of due diligence investigation offered on the current market
  • Current Laws and Legislation around the world that are mandating businesses to conduct due diligence investigations

REGISTER NOW

Webinar 2: The A-Z on how the examiner conducts adequate due diligence investigation

  • Duration: 1h 15 min (1h sharing followed by 15 min Q&A)
  • Date: TBC
  • Time: 11.00am – 12.15pm UAE
  • Speaker: Ashelea Arzadon
  • Format: Webinar

The first webinar will be on “The A-Z on how the examiner conducts due diligence investigation” while the topic for the second webinar/podcast is “Web-based or On-site due diligence investigation. When and why do you need it? And who’s going to need it?” 

The webinars will be addressed by CRI Group experts and will be of one-hour duration followed by a 15 minutes Q&A session. The dates for these webinars will be confirmed shortly. It is recommended that you register your interest here so that you are kept updated on the webinars.

Our Speaker

Ashelea is the Investigations Manager, leading the due diligence, C-level background screening, insurance claim and corporate investigations for multinational clients across various key industry sectors: public relations and advertising agencies of global brands, international law firms, aerospace and defence, and nuclear and energy companies. Her work includes multi-jurisdictional investigations in MENA, Europe and the Americas.

Before joining CRI® Group, she leveraged her knowledge of international law and politics as part of diplomatic and consular practices after working with the Department of Foreign Affairs in Manila. She graduated from Lyceum of the Philippines University with a bachelor’s degree in International Relations with a major in Diplomacy – and currently pursuing her master’s in Corruption and Governance at the University of Sussex. She became a Certified Fraud Examiner in 2018.

Due Diligence investigations: Mitigate Critical Risks

At CRI®, we provide due diligence services where ever you are. Use our DueDiligence360™ reports to help you comply with anti-money laundering, anti-bribery, and anti-corruption regulations ahead of a merger, acquisition, or joint venture. You can also use them for third-party risk assessment, onboarding decision-making, and identifying beneficial ownership structures.

Due Diligence helps you Identify key risk issues clearly and concisely using accurate information in a well-structured and transparent report format. Our comprehensive range of reports includes specialised reports that support specific compliance requirements. Protect your reputation and the risk of financial damage and regulator action using our detailed reports. They enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime. 

The CRI® Group invites you to schedule a quick appointment with them to discuss in more detail how conducting due diligence and compliance can help you and your organisation.

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceTPRMDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. 

We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

 

FREE eBook | Supply Chain Due Diligence Act (LkSG)

In January 2023 a new German law, known as the Supply Chain Due Diligence Act (LkSG, short for Lieferkettensorgfaltspflichtengesetz in German), becomes effective and applies to companies operating or trading in Germany. This eBook looks at the key issues in the Supply Chain Due Diligence Act.

The Supply Chain Due Diligence Act requires businesses to undergo significant efforts in order to achieve compliance. The law introduces a legal requirement for businesses to manage social and environmental issues in their supply chains, through more responsible business practices. We’ve compiled more details on the act in our FREE ebook that can be downloaded now!

DOWNLOAD THE FREE EBOOK

What is the Supply Chain Due Diligence Act all about?

In Part 1 of this eBook, we will provide a first outline of the Act’s material contents and an in-depth analysis of the applicability of the Act to various corporate structures.

The eBook is the collection of a series of articles in which we will take a closer look at key issues. It addresses the question of what you can do to adequately prepare yourself at this early stage rather than wait till later in the year. We would be happy to provide you with individual advice, as well. Please do not hesitate to contact us.

DOWNLOAD THE FREE EBOOK

Preparatory actions for Supply Chain Due Diligence Act

In Part Two of the Playbook, we’ll explore what preparatory actions you can take and how an effective risk management plan can be achieved and implemented through several services including due diligence.

Global integrity due diligence investigations provide your business with the critical information it needs in making sound decisions regarding mergers and acquisitions, strategic partnerships and the selection of vendors and suppliers. The level of due diligence will ensure that working with a potential i.e. trade partner will ultimately achieve your organisation’s strategic and financial goals.

Operating in the international market requires organisations to establish partnerships with numerous third parties, which supply raw materials, run business operations abroad and/or act as agents. At the same time, third parties are considered as the greatest area of bribery risks for international enterprises. Under the Bribery Act 2010, British-based organisations have to conduct due diligence on their third parties as the core principle of meeting the adequate procedures requirement.

DOWNLOAD THE FREE EBOOK

IF YOU CANNOT FIND WHAT YOU ARE LOOKING FOR, PLEASE FEEL FREE TO GET IN TOUCH WITH THE TEAM!

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IPR Infringement Report says IP infringement is getting worse!

Intellectual property can be a business’s most valuable asset. So when outside parties threaten to steal your ideas, copy your products or disrupt your marketing channels, corrective action on your part can become tedious, time-consuming and expensive. Also, because of the high value associated with Intellectual Property Right (IPR), infringement of those rights is a lucrative criminal activity, which generates significant costs to the rights owners and to the economy in general. In fact around 12,000 IP infringement cases are filed each year.

Now, a study conducted by the European Union Intellectual Property Office (EUIPO) in partnership with the European Patent Office (EPO) found that the total contribution of IPR-intensive industries to the EU economy accounts for approximately 42% of GDP (€5.7 trillion) and 28% of employment plus another 10% in indirect employment effects in non-IPR intensive sectors. Those sectors also generate a trade surplus of approximately €96 billion with the rest of the world and pay their workers 46% higher salaries than other sectors.

The economic value of IPRs

This IP infringement report brings together the findings of the research carried out in recent years by the EUIPO, through the European Observatory on the Infringement of Intellectual Property Rights, on the extent, scope and economic consequences of IPR infringement in the EU. Evidence on the economic value of IPRs in the EU economy, the extent to which this value is exploited, the infringement mechanisms used to capture that value and the actions being taken in response to these challenges are outlined and discussed in the report as well.

According to a study carried out by EUIPO and the Organization for Economic Co-operation and Development (OECD) in 2019, estimates of IPR infringement in international trade in 2016 could reach as much as 3.3% of world trade. Up to 6.8% of EU imports, or €121 billion per year, consist of fake goods. Both sets of figures are significantly higher than those found in study by the two organisations published in 2016, indicating that the problem has grown even more serious in recent years.

Annual losses of €92 billion during 2012-16 due to counterfeiting

In a series of sectorial studies, the EUIPO fears it has lost sales in 11 sectors in the EU, as a result of counterfeiting. These losses have occurred directly in the industries being analysed and across their associated supply chains and totalled more than €92 billion per year during 2012-16.

Abundant value, lenient sentences and high returns on investment together make it attractive for criminal gangs to engage in counterfeiting activities. The modus operandi of such gangs is becoming increasingly complex as technology and distribution channels evolve, hand in hand with the breadth of products being counterfeited.

How legitimate brands can suffer due to advertising!

The business models adopted by counterfeiters make significant use of the internet to distribute their products and to promote the distribution and consumption of illegal digital content. Internet sites selling counterfeit goods benefit from additional advertising revenues from both “high risk” ads (adult, gaming, and malware) and, paradoxically, also from legitimate brands, which then suffer in two ways from advertising on such sites: damage to their own brand and provision of credibility to the hosting website.

In addition to analysing the supply of counterfeit goods and pirated content, the EUIPO has also studied the demand side, that is, the attitudes of EU citizens towards IPR and their willingness to consume IPR-infringing goods and services. The incentives for consumers to purchase counterfeit goods and to access copyright-protected content illegally include lower prices, easy accessibility and a low degree of social stigma associated with such activities.
In response to these developments the EUIPO, together with public and private partners, is undertaking and supporting a number of actions to meet these challenges.

The economic and social impact of IPR infringements

The actions by the EUIPO range from providing rights owners with information on the changing infringement landscape and working with Europol on wider responses to IP crime. It also included participating in the funding of a specialised IP crime unit within Europol, supporting the European Commission’s efforts to address the supply of counterfeit goods in third countries and to help Small and Medium-Sized Enterprises (SMEs) protect their IPRs. This was done by providing citizens with information on the availability of legally accessible digital content and on the economic and social impact of purchasing counterfeit goods or accessing digital content illegally.

VIEW IPR REPORT

How the CRI® Group can help you tackle IPR infringement

CRI® Group’s Intellectual Property Investigations team helps companies identify threats to IP and confidential information internally and throughout their supply chain, develop the appropriate mitigation strategies and investigate suspected infringements.

VIEW OUR BROCHURE

For further information on IPR infringement or to book a meeting with our experts, click here.

Meet our IPR Infringement Investigation Manager

Mahamad Thouhid – e: mahamad.thouhid@crigroup.com – is an experienced Investigations Specialist with a demonstrated history of working in the investigations and intelligence industry. Skilled in investigative planning and reporting, delivering innovative IP/Brand protection (Anti Counterfeit, Products tampering, Anti diversion and Infringement), OSINT, law enforcement, liaison with Govt. Authorities, operations management, due diligence, etc.


BOOK A MEETING NOW!

 

Seven types of business risk you may want to address in your company

Running a business takes hard work and while success – customers, revenue and satisfaction – is the ultimate goal. However and regardless of size, all businesses come with risks, risks that may stop you from achieving your goals. That’s why business risk management is key to building confidence in both your internal and external stakeholders – people want to be assured that each business decision is properly vetted before being made, that losses are minimised and successes maximised. A robust business risk management plan puts in place procedures that can help you identify, pre-empt, and avoid potential threats – or at the very least minimise their impact. Here are seven types of business risk you may want to address in your company.

1- Economic Risk

The economy is constantly changing as the markets fluctuate. It’s important to watch changes and trends to identify and plan for an economic downturn. Some positive changes are good for the economy, which lead to booming purchase environments, while negative events can reduce sales. To counteract economic risk, save as much money as possible to maintain a steady cash flow. Also, operate with a lean budget with low overhead through all economic cycles as part of your business plan.

2- Compliance Risk

Business owners face an abundance of laws and regulations to comply with. For example, recent data protection and payment processing compliance could impact how you handle certain aspects of your operation. Staying well versed in applicable laws from federal agencies like the Occupational Safety and Health Administration (OSHA), the Environmental Protection Agency (EPA), and state and local agencies can help minimise compliance risks. If you rely on all your income from one or two clients, your financial risk could be significant if one or both no longer use your services. Start marketing your services to diversify your base so losing one won’t devastate your bottom line. Non-compliance may result in significant fines and penalties. Remain vigilant in tracking compliance by joining an industry organisation, regularly reviewing government agency information and seeking assistance from consultants specialising in compliance. For more on data compliance, read: “GDPR, Everything You Need to Know” and “GDPR: A 21st Century approach to Compliance.”

3- Security and Fraud Risk

As more customers use online and mobile channels to share personal data, there are also greater opportunities for hacking. News stories about data breaches, identity theft and payment fraud illustrate how this type of risk is growing for businesses. Not only does this risk impact trust and reputation, but a company is also financially liable for any data breaches or fraud. To achieve effective enterprise risk management, focus on security solutions, fraud detection tools and employee and customer education about how to detect any potential issues.

4- Financial Risk

This business risk may involve credit extended to customers or your company’s debt load. Interest rate fluctuations can also be a threat. Adjusting your business plan will help you avoid harming cash flow or creating an unexpected loss. Keep debt to a minimum and create a plan to start lowering that debt load as soon as possible. If you rely on all your income from one or two clients, your financial risk could be significant if one or both no longer use your services. Start marketing your services to diversify your base so losing one won’t devastate your bottom line.

5- Reputation Risk

There has always been the risk that an unhappy customer, product failure, negative press or lawsuit can adversely impact a company’s brand reputation. However, social media has amplified the speed and scope of reputation risk. One negative tweet or bad review can decrease your customer following and cause revenue to plummet. To prepare for this risk, leverage reputation management strategies to regularly monitor what others say about the company online and offline. Be ready to respond to those comments and help address any concerns immediately. Keep quality top of mind to avoid lawsuits and product failures that can damage your company’s reputation.

6- Operational Risk

This business risk can happen internally, externally or involve a combination of factors. Something could unexpectedly happen that causes you to lose business continuity. That unexpected event could be a natural disaster or fire that damages or destroys your physical business. Or, it might involve a server outage caused by technical problems, people, or a power cut. Many operational risks are also people-related. An employee might make mistakes that cost time and money. Learn more about the” Top Risk Management Concerns and The Need for Leadership During COVID-19.”

Whether a people or process failure, these operational risks can adversely impact your business in terms of money, time and reputation. Address these potential operational risks through training and a business continuity plan. Both tactics provide a way to think about what could go wrong and establish a backup system or proactive measures to ensure operations aren’t affected. Investigative operations (via commercial investigations) focus on the current status of your business – i.e. location of assets, financial information, identification of unmet needs of any market, gauge brand awareness and identity in the market, etc.) For example, more businesses are using cloud storage to protect company data and rely on remote team members to maintain operations. Automating more processes also helps to reduce people’s failures. Learn more about it HERE!

7- Competition (or Comfort) Risk

While a business may be aware that there is always some competition in their industry, it’s easy to miss out on what businesses offer that may appeal to your customers. In this case, the business risk involves a company leader becoming so comfortable with their success and the status quo that they don’t look for ways to pivot or make continual improvements. The increasing competition combined with an unwillingness to change may result in a loss of customers. Enterprise risk management means a company must continually reassess their performance, refine its strategy, and maintain strong, interactive relationships with its audience and customers. Additionally, it’s important to keep an eye on the competition by regularly researching how they use online and social media channels.

Business Intelligence is most effective when it combines data derived from the market in which your business operates (external) with data from within, such as financial and operations data (internal). When combined, this data can provide a complete picture so that you can make any business decision, from operational to strategic, such as product positioning or pricing. Learn more about it HERE!

Accept, But Plan

Although you will never be able to eliminate business risk, proactively planning for it can help. Awareness is key in helping you save money and time while protecting the trust, reputation, and customer base you’ve worked so hard to achieve.

Who is CRI® Group?

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications and is an HRO-certified provider and partner with Oracle.

 

FCRA: Risk Assessment and Financial Crime

A thorough understanding of its financial crime risks is key if a firm is to apply proportionate systems and controls. The following are self-assessment questions to help you implement an efficient risk assessment to mitigate the risk behind finance crime.

Self-assessment questions:

  • What are the main financial crime risks to the business?
  • How does your firm seek to understand the financial crime risks it faces?
  • When did the firm last update its risk assessment?
  • How do you identify new or emerging financial crime risks?
  • Is there evidence that risk is considered and recorded systematically, updated assessments, and appropriate sign-off?
  • Who challenges risk assessments and how? Is this process sufficiently rigorous and well-documented?
  • How do procedures on the ground adapt to emerging risks? (For example, how quickly are policy manuals updated and procedures amended?)

Examples of good practice:

  • A comprehensive risk assessment.
  • Risk assessment is a continuous process based on the best information available from internal and external sources.
  • The firm assesses where risks are greater and concentrates its resources accordingly.
  • The firm actively considers the impact of crime on customers.
  • The firm considers financial crime risk when designing new products and services.

Examples of poor practice:

  • Risk assessment is a one-off exercise.
  • Efforts to understand risk are piecemeal and lack coordination.
  • Risk assessments are incomplete.
  • The firm targets financial crimes that affect the bottom line (e.g. fraud against the firm) but neglects those where third parties suffer (e.g. fraud against customers)

Using An External Services Provider to Conduct Your Financial Crime Risk Assessment

Aside from it often being difficult to schedule time for this type of review or know where to start, there is considerable benefit in having an independent, objective review of the financial crime risks your business faces. Corporate Research and Investigations Limited (CRI® Group) has a wealth of knowledge in Financial Crime and can help you identify risks and exposures that might otherwise be missed, thereby enabling appropriate procedures to be put in place.

To engage CRI® Group to conduct your Financial Crime Risk Assessment, contact the CRI® team. CRI® has a dedicated team of experienced compliance consultants who can provide expert assurance and peace of mind. Get in touch to see how we can help your organisation.

About CRI® Group

CRI® Group has protected businesses from fraudbribery and corruption since 1990. We are a leading Compliance and Risk Management company licensed and incorporated entity of the Dubai International Financial Center (DIFC) and Qatar Financial Center (QFC). CRI® protects businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with your business.

In 2016, the company launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence. This independent certification body helps organisations mitigate internal and external risks by providing a complete suite of Anti-Bribery, Compliance and Risk Management programs.

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. Our global team can support your organisation anywhere in the world. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications and is an HRO-certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management SystemsISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

 

Review and Reassess Your Organisation’s Third-Party Relationships

 

Is it the time to review and reassess your third-party relationships? 

The global pandemic is rattling economies worldwide, disrupting supply chains, interrupting production, wreaking havoc on industry sectors and shuttering businesses; this impacts third-party relationships businesses have. At some point, organisations that affiliate with outside providers will eventually have to deal with any number of operational interruptions resulting from a third-party relationship-related issue. And while the risks involved in partnering with outsiders haven’t changed over time, the potential level of liability has been ratcheted up several notches.

International Borders have been ripped down. Technology has improved the way businesses communicate. Easy access to data and information enables the media to report on business news before a business can respond. Consequently, the markets are quick to react based on this 24/7 on-demand news cycle. The result of this increased liability can be highly problematic:

  • Business litigation has skyrocketed.
  • Corporate reputations are negatively impacted due to the fallout from the current global pandemic.
  • Risk management frameworks are continually evolving to acclimate to changing business environments.
  • Board members are becoming increasingly subjected to intense scrutiny from outside critics.

THE CHALLENGE: The Global Business Climate is Changing. So Are Your Third-Party Partners.

  • Organisations suffer financial loss as the supply chain falters and loses customers because of poor-quality service from a third party.
  • Company data systems are exposed and breached because of poor security practices by third parties.
  • Companies are experiencing supply chain issues due to poor disaster recovery procedures by third parties.
  • Organisations are increasingly being exposed to litigation because relationships with an outside provider significantly violated contractual terms, potentially resulting in regulatory exposure.

If your organisation requires any of the following within your compliance checklist, then you must consider a third-party risk management solution:

  • Have a lack of visibility or understanding danger of the risks posed by your relationships with many types of third parties?
  • Want greater visibility into third-party performance and risks?
  • Need to improve operational costs, process, efficiencies, and organisational agility associated with your third-party relationships?
  • Need to gain greater control over the related risks?
  • Want to be confident that third parties are compliant with your business’ policies and their own based on government regulations and industry requirements?

The role or size of the third party is not as important as the nature of the relationship they have with your business. Think of your third-party access to your sensitive data or property! A cleaning company with access to your filing cabinet represents a different but still significant risk. And remember, you are accountable for the inappropriate actions of any of your third parties.

THE SOLUTION: 3PRM: A Third-Party Certification Program; Qualify Your Partners. Protect Your Organisation.

Corporate Research and Investigations Limited (CRI® Group) is pleased to announce the rollout of its 3PRM-Certified™ program, specifically designed for organisations across the Middle East, Europe and Asian regions. 

This highly specialised Third-Party Risk Management assessment and certification program was developed to help organisations accurately determine the legal compliance, financial viability, and integrity levels of outside partners, suppliers, and customers who seek to affiliate with and represent your business.

Download our 3PRM™ Brochure 

The 3PRM-Certified™ program consists of gap analysis and investigative due diligence on targeted third-party partners, suppliers and agents seeking to affiliate with your organisation. This highly thorough program can reveal any anti-corruption, compliance and risk management deficiencies associated with the international regulatory framework.

CRI® Group employs a network of locally qualified, subject-specific auditors, investigators, certified fraud examiners and industry-specific professionals across the Middle East, European and Asian regions who can provide expert counsel in offering 3PRM-Certified™ strategies as an effective pre-emptive measure. 

OUTCOMES – Identifying red flags

  • Undisclosed third-party transactions
  • Material misrepresentations or omissions
  • Unreported financial liabilities
  • Criminal or regulatory sanctions
  • Prior bribe or corruption allegations
  • Undisclosed legal or bankruptcy proceedings
  • Politically Exposed Persons (PEPs)

RESULT: A highly educated market responds immediately with their pocketbooks.

Has your organisation vetted its third-party relationships lately? CRI® Group’s 3PRM™ Third-party risk management strategy can safeguard your organisation against unwanted business dealings and risks from the third party. Contact CRI Group to learn more about our 3PRM-Certified™ third-party risk management strategy program and discover an effective and proactive approach to mitigating the risks associated with corruption, bribery, financial crimes and other dangerous threats posed by third-party partnerships.

We look forward to assisting you. Feel free to reach out to our CEO, Zafar I. Anjum, MSc, MS, LLM CFE, CIS, MICA, Int. Dip. (Fin. Crime), Int. Dip. (GRC), MBCI, CII Int. Dip. (AML) | e: zanjum@crigroup.com | t: +44 7588 454959

GET A QUOTE

Who is CRI® Group?

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceTPRMDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle

We’d like to share with you 10 great reasons to partner with CRI® Group today:

  1. CRI® Group’s personal touch: Our high level of service sets us apart from our competitors: As your partner, our team become members of your team – working for you with our “boots on the ground” approach to gathering information. Our experts excel at deterring, detecting and investigating fraud and other crimes against businesses.
  2. Our vast business intelligence network: We access information from 180 countries, gathering local knowledge in places our competitors cannot. Our presence in Pakistan, Oman, Turkey, Saudi Arabia, Libya, Qatar, Egypt, Kuwait, Bahrain, as well as other countries in Africa and the whole of Southeast Asia, means that many of our competitors contact us for information from those countries.
  3. Competitive pricing: CRI® Group does not maintain the high overhead of larger firms, many of which lack our specialisation and level of individual client attention. We work within your budget, as CRI® Group’s prices are consistently lower than our competitors’ rates.
  4. 3PRM” – Our Third-Party Risk Management Strategy™: At CRI® Group, we have developed our own comprehensive service for helping clients manage third-party risks. Our team of experts provide the highest level of protection for companies worldwide.
  5. CRI® Group’s wide knowledge base: Our experts come from a variety of professions and possess industry knowledge and experience serving clients spanning the oil and energy, banking, investments, international finance, and public and privately held multinational business sectors. CRI® Group professionals work closely with your business to analyse systems and develop effective solutions that reduce the risk of your company falling prey to employees, suppliers or outside crime.
  6. Our background checks catch everything: CRI® Group’s background screening and pre-employment screening services expose vulnerabilities and threats within your organisation and can significantly reduce the potential of business and financial crime, fraud and malpractice from occurring within your workplace.
  7. We’re recognised and acclaimed: As well as winning awards for “Anti-Fraud Advisor of the Year,” “Leading Adviser in UAE”, and “Business Due-Diligence Firm of the Year,” CRI® Group is also working towards the “Investors in People” accreditation.
  8. We are discreet: Let’s face it; there are some problems you just don’t want announced to the world. Fraud, internal investigations, due diligence or liability issues – CRI® Group’s experts are trained to maintain the highest levels of client confidentiality. We keep your private business private.
  9. Our updates keep you in the know: As industry experts, we offer a publication called Fraud 360, which is produced on a quarterly basis, with monthly email updates offering awareness, knowledge, latest trends and helpful advice for companies on fraud. If you would like to be on our mailing list, please subscribe here.
  10. CRI® Group is truly international. We maintain offices in UAE, Turkey, Pakistan, Qatar, Singapore, Hong Kong, the United States and the United Kingdom. For more information, please visit www.crigroup.com.

Check out our Why Partner With CRI® Group InfoPack

CRI® is hosting the 2022 ABAC Summit [EVENT CANCELLED]

ABAC Summit 2022 “Managing Governance, Anti-bribery, Whistleblowing, Compliance & Risks Effectively!” 

CRI® Group, a global leader in risk, compliance and background investigations, to host an “Anti-bribery, anti-corruption (ABAC) Summit” in association with the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence. The Summit embraces the theme of “Managing your Organization Governance, Anti-bribery, Whistleblowing, Compliance & Risks Effectively.” And it is a must-attend event for anyone working in anti-bribery and anti-corruption, due diligence, risk management, and anti-fraud such as CEOs, CFOs, Chief Legal Officers, Chief Compliance Officers, In-house Counsels, Compliance Managers, Lawyers and Auditors, Heads of Procurement and Other officers responsible for Compliance and Anti-Corruption. You can check out the full schedule here

The ABAC Summit is a two-day hybrid event; on the 7th of September, we will hold the physical conference in Kuala Lumpur (venue TBC), but the conference will be streamed live for anyone who wants to watch it in the comfort of their house or office. And on the 8th of September, we will hold three physical workshops (venue TBC) with some of the conference featured speakers and other industry experts.

SAVE YOUR SEAT

The day one conference will include speeches on compliance with the most significant international laws and regulations and Q&A sessions with experts on the Foreign Corrupt Practices Act. Day two is divided into three targeted workshops. All workshops will include highly informative work sessions, group discussions, Q&A periods, and plenary sessions to address the many challenges the corporate world faces.

The ABAC Summit will bring together some of the greatest minds in the fight against corruption, with a lineup of expert speakers that share their experiences, knowledge and best practices with an attentive audience, including members from MACC, the Prime Minister of Malaysia Office and the US Embassy in Malaysia. Intending to redefine the anti-bribery culture within organisations in the country, this Summit and workshop bring together Foreign Consulates, high-profile enforcement authorities, faculty speakers, delegates from top 500 Forbes and public limited companies, and media in a single forum to discuss effective internal controls, ethics, compliance measures and best practices for preventing and detecting bribery within organisations. The event aims to provide guidance and training that enables business sectors to fight malpractices.

 SAVE YOUR SEAT

Many CEOs, CFOs, directors, compliance and legal officers, lawyers, and due diligence and risk management professionals from leading corporate entities have already confirmed attendance. 

Confirmed Speakers

All speakers will be sharing invaluable expertise in due diligence, internal controls and compliance issues, along with showcasing the latest resources and solutions to detect and prevent bribery and corruption:

  • Drago Kos, Chair of OECD Working Group on Bribery with “The OECD 2021 Recommendation: New standards for the companies’ governance”;
  • Faisal Anwar, CCEP-I, Member of B20 Integrity & Compliance Task Force at B20-Italy & Saudi Arabia with “Governance, Fraud Risk, and Compliance”;
  • Prime Minister of Malaysia Office representative;
  • Zafar Anjum Group CEO of Corporate Research and Investigations and ABAC® Center of Excellence with “Managing your Organisation Governance, Anti-bribery, Whistleblowing, Compliance and Risk Effectively;”
  • US Embassy  representative with “The US Strategy in Countering Corruption: Implications for US businesses worldwide”; 
  • MACC  representative with “Company in Malaysia: Earn the TRUST, MACC expected from you”;
  • Mark Chay, CEO of Coalition for Business Integrity (CBI) with “Anti-bribery verification: Affordable anti-bribery program for small and medium enterprise (SME)”; and 
  • Dr. Muhammad Mohan, President, Transparency International Malaysia with “Corporate governance and Board effectiveness: Corporate governance policies.”

SAVE YOUR SEAT

Time is running out to make your plans to attend ABAC Summit 2022 and get an edge on the latest best practices, laws, regulations and compliance presented by the foremost experts in the field. Meet colleagues; or make new connections with CEOs, CFOs, other executives, directors, lawyers, auditors, legal officers, compliance officers and others who face the same anti-fraud and anti-corruption challenges.

Agenda

Day 1 – Conference

CRI® Group founder and CEO Zafar Anjum said: “This year’s agenda was developed to provide you with invaluable information and foresight into the forces that guide and dictate our everyday work life: the ongoing quest for solutions, balance, and insight into the often chaotic world of anti-bribery and corporate corruption compliance”. This is a critical time for world markets and economies.

The latest Corruption Perceptions Index shows that “most countries around the world are making little or no progress in ending corruption” (Transparency International, titled “Corruption perception index 2021”).  That’s why the expertise, best practices and resources shared by the leading industry experts at the ABAC conference and workshop are more important than ever. In the Asia Pacific region alone, most countries are in the lower half of this year’s Corruption Perceptions Index. This is because bribery is still a key problem. Countering corruption together is the solution; that’s why CRI® Group is hosting the 2022 ABAC Summit, with a conference agenda that includes the following highlights:

  • A welcome introduction by Zafar Anjum MSc, CFE, Intl. Dip. (Fin. Crime) with “Managing your Organisation Governance, Anti-bribery, Whistleblowing, Compliance and Risk Effectively.” As founder and CEO of Corporate Research and Investigations and ABAC® Center of Excellence, Zafar Anjum has dedicated 30 years to fraud prevention, protective integrity, security and compliance. His expertise helps create secure networks across challenging global markets;
  • Speech from a member of the Prime Minister of Malaysia Office;
  • Keynote Speech from am a member of the US Ambassador in Malaysia, who will present “The US Strategy in Countering Corruption: Implications for US businesses worldwide.” 
  • Plenary Talk by a Malaysian Anti-Corruption Commission (MACC) member with “Company in Malaysia: Earn the TRUST, MACC expected from you.”
  • Plenary Talk by Drago Kos, Chairman of the Organization for Economic Co-operation & Development (OECD), will present “The OECD 2021 Recommendation: New standards for the companies’ governance“. Drago Kos is the Chairman of the OECD Working Group on Bribery in International Business Transactions, Co-Chair of the Defence Corruption Monitoring Committee in Ukraine and adviser to the Kosovo Anti-Corruption Agency.
  • Plenary Talk by Dr. Muhammad Mohan, President, Transparency International Malaysia, will present “Corporate governance and Board effectiveness: Corporate governance policies;
  • Plenary Talk by Mark Chay, CEO of Coalition for Business Integrity (CBI), will present “Anti-bribery verification: Affordable anti-bribery program for small and medium enterprise (SME)”;
  • Plenary Talk by Faisal Anwar, CCEP-I, Member of B20 Integrity & Compliance Task Force at B20-Italy & Saudi Arabia, will present “Governance, Fraud Risk, and Compliance.”
SAVE YOUR SEAT SEE FULL SCHEDULE

 

Day 2 – Workshop

This is an excellent learning opportunity, with a workshop agenda that features some of the day one conference keynote speakers, the workshops will address topics critical to any organisation leader or executive, including:

  • Risk Management strategies and Fraud Investigation
  • Governance, compliance, anti-bribery compliance and AML issues
  •  Whistleblowing and Internal Investigation
  • The FCPA, UK Bribery Act, etc.
  • Mitigate employee risk with Employee Background Screening and Due Diligence
  • Procurement and Third-party risk management

Gain invaluable expertise from distinguished expert speakers and share your knowledge with the participants.

Price List Details

Virtual Conference only MYR 500 GBP 89  EUR 106 USD 119
Physical Conference only MYR 1,000 GBP 179  EUR 216 USD 238
Physical Workshop only MYR 1500 GBP 269  EUR 320 USD 357
Virtual Conference & Physical Workshop (bundle) MYR 1,500 GBP 269  EUR 320 USD 357
Physical Conference & Workshop (bundle) MYR 2,000 GBP 359  EUR 426 USD 476

 

SAVE YOUR SEAT SEE FULL SCHEDULE

 

Who is CRI® Group?

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk ManagementEmployee Background ScreeningBusiness IntelligenceTPRMDue DiligenceCompliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2018 and BS 7858:2019 Certifications, is an HRO certified provider and partner with Oracle.

Why Partner with CRI® Group

In 2016, CRI® Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body that provides education and certification services for individuals and organizations on a wide range of disciplines and ISO standards, including ISO 31000:2018 Risk Management- GuidelinesISO 37000:2021 Governance of OrganisationsISO 37002:2021 Whistleblowing Management SystemISO 37301:2021 (formerly ISO 19600) Compliance Management system (CMS)Anti-Money Laundering (AML); and ISO 37001:2016 Anti-Bribery Management Systems ABMS. ABAC® offers a complete suite of solutions designed to help organizations mitigate the internal and external risks associated with operating in multi-jurisdiction and multi-cultural environments while assisting in developing frameworks for strategic compliance programs. Contact ABAC® for more on ISO Certification and training.

CRI® Group invites you to schedule a quick appointment with us to discuss in more detail how our risk management solutions can help you and your organization. 

BOOK A MEETING NOW!