Corruption risk management opens up new markets

This will enable corporations to operate with controlled level of corruption risk in markets where others do not dear to enter, or are entering with an uncontrolled risk exposure. There are several examples where corporations have decided to withdraw from existing businesses just because they to late find themselves in a position with unmanageable corruption risks.

The reality is that many attractive business opportunities often exist in environments where corruption is most severe. Many of the fastest growing economies in the world offer many attractive business opportunities. These opportunities often arise as results from fundamental transformations based on economical or political reforms. It is however evident that such transition processes not only nurse great business opportunities, but are also enabling corruption and other types of abuse of official power.

It is obviously compelling for corporations to jump on the opportunities to in these environments. The actors that are quick to enter without sufficient anti-corruption programs will be at high risk of becoming exposed to corruption. Once the risk awareness gradually increases, corporations often become defensive and cautious and may start to exit from these high-risk markets with established on-going business. This behaviour is in many cases based on reflex rather than the result of a systematic analysis. It is however a natural and to some extent necessary reaction due to the fact that the corporations has, or perceives to have, to high risk exposure to corruption in those markets. Regardless of the reason for this business dismantling, it will inevitably have a negative effect on the business results.

It is therefore a considerable business advantage for corporations to have the ability to manoeuvre in high-risk environments with proactive and sustainable control of their corruption risks. One of the most effective way of enhancing future competitive advantage is thus to develop and implement proactive anti-corruption programs and make them work, not for the purpose of being displayed to outside stakeholders because they expect it, but as an integrated operational tool to perform better business results.