Absence of Checks and Balances: A Fatal Mistake of International Business
Companies often increase their susceptibility to fraud when setting up operations overseas. They underestimate the importance of understanding the new operations, adapting to different norms, and taking the time to build trust and monitoring systems into overseas teams. All these oversights create an environment that lacks the checks and balances needed to discourage theft while keeping your assets and your business safe.
Areas of High Vulnerability
This white paper will illustrate how these common root causes can affect the outcome of your international partnership, provide lessons learned from the failures of other companies, and outline practical steps to set your IJV up for success.
Why do people commit corporate theft?
There is no easy recipe to essentially “trust but verify”, but the tips above should get you on the right path. It is also important to note that your checks and balances efforts must be ongoing. Not only do you need to establish these practices, but you also will need to remain vigilant in your monitoring and enforcement.
Begus, Otto R. (1976) “Crime and Survival: Some Basic Reflections,” University of Baltimore Law Forum: Vol. 6 : No. 3 , Article 8.
ACFE. (2018) “Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse”.
Gillis & Simpson. (2020) “Petty Theft at Work”. www.theinterviewguys.com/petty-theft-at-work/
Law Firm Newswire. (2013) “Employee Theft No Longer An If – Now It is How Much”. www.lawfirmnewswire.com/2013/04/employee-theft-no-longer-an-if-now-it-is-how-much/