Speaker: Andrew Wilcock, Managing Associate at Allens Melbourne Dispute Team
Focus: Risk and compliance issues, specifically anti-bribery and corruption
Series Context: Third session emphasized the importance of a strong anti-bribery compliance system
Current Session: Discussing the first key element: robust risk assessment
Importance of Risk Assessment
Foundation of Effective Compliance: An enterprise-wide risk assessment is crucial
Benefits: Helps in identifying and rating key anti-bribery risks, assessing current compliance controls, and deploying resources efficiently
Regular Updates: Should be conducted periodically and during significant business changes
Example: Every two years or during new business ventures/territories
Documentation
Well-Documented Processes: Essential for strengthening the process and for disclosure to stakeholders/regulators
Key Steps in Conducting a Risk Assessment
1. Establish a Compliance Baseline
Global Framework Complexity: Understand anti-bribery and corruption laws and obligations
2. Consider Geographical and Business Activity Exposure
Geographical Risk: Varies by market
Lower risk in Australia/New Zealand
Higher risk in Central and South Asia
Business Activities: Some sectors pose higher risks
Examples: Interaction with public officials, state-owned enterprises, reliance on licenses/permits, lobbying, political donations, gifts/hospitality, third-party intermediaries
3. Identify and Review Risks
Holistic Understanding: SME staff might understand their business well enough
Document and Stakeholder Review: Necessary in most cases
Documents: Supplier/customer lists, permits/licenses, gift/donation registers, agreements with intermediaries