|Global media and the Internet enable news to travel faster and reach more people than ever before. The international nature of business and growing collaboration among regulators worldwide can expose an entity to a greater number of regulatory regimes. These factors may increase both the likelihood and the potential impact of alleged wrongdoing on a company's reputation and shareholder value. Experience suggests that companies that manage their risks proactively may be less vulnerable to having their reputations harmed by allegations of wrongdoing, falling behind in the news cycle of reactions, and losing the support of regulators, customers, suppliers, investors, the general public, and even politicians. Audit committee members may want to consider how their company manages its risks of fraud and corruption and whether today's risk environment merits a more proactive approach. |
In this edition of the Audit Committee Brief, Deloitte discuss 10 areas the audit committee can evaluate that may help mitigate reputational risks of fraud and corruption.