Mumbai: India is an attractive destination for foreign investors as one of fastest growing emerging markets, however according to Kroll Annual Global Fraud and Risk Report, 19 per cent of surveyed senior executives worldwide were dissuaded from operating in India due to existing concerns over fraud, corruption and security, second only to China (25 per cent).
According to the report, the percentage of respondents affected by fraud reduced to 68 per cent in 2016, down from 80 per cent in 2015. The report revealed that a greater percentage of respondents in India reported fraud across the four categories surveyed - corruption and bribery (27 per cent), management conflict of interest (27 per cent), market collusion (27 per cent) and internal fraud (25 per cent), compared to last year.
However said Reshmi Khurana, managing director and head, South Asia for Kroll, “it is, possible to manage and ride the aforementioned risks if you have a clear and consistent fraud mitigation strategy that includes due diligence on employees and partners, developing an effective whistleblowing system, ensuring independence of investigations and building a strong compliance culture.”
On cyber security India reported 12 per cent lower than the global average as 73 per cent of the participants said that they had experienced a cyber incident in the past 12 months.
Observing that cyber risk presents a major threat to Indian firms Tarun Bhatia, MD, investigations and disputes, said significant number of 73 per cent reported that they had experienced a cyber incident in the past 12 months while 59 per cent said that their employee records had been targeted in the last 12 months.
