Management of Corruption Risks: Law Problems of Identification and Legal Assessment of Probability of Manifestation

Abstract

The legal problems of identification and evaluations of the probability of corruption risks manifestation are analyzed in the article. Found, most of anti-corruption measures of the authorities are formal and amount to the adoption of political documents. The purpose of the article is the theoretical substantiation of the components of the process of managing corruption risks and motivating the most appropriate methods of risk assessment. The following is proposed in the article: the anti-corruption control is understood as a system of checks aimed at identifying corruption risks and assessing the implementation of anti-corruption measures at the enterprise; the corruption risk is understood as the probability that an event of a corruption offence or the offence related to corruption will occur, which will negatively influence the achievement of the enterprise's goals and objectives. It is recommended that the reasons for corruption risks are conditions that encourage (stimulate), cause or allow a person in the course of his or her functional duties, to commit unlawful acts characterized by deceit, concealment or misuse of trust in order to obtain money, property or services, as well as to evade the payment of funds for personal gain. The realization of corruption risk is manifested in various types of corporate fraud, in particular, illegal appropriation of assets, corruption as a result of conflict of interests, fraud involving the manipulation of accounting (reporting) data. It is stated that the main criterion that determines the probability of corruption risk manifestation is the frequency of cases of committing a corruption offence, taking into account the time limits. In this regard, there are risks with a low, average and high level of manifestation probability.

Mitigating bribery risks to strengthen the corporate social responsibility in accordance with the ISO 37001

“…Other attempts were made to assess bribery risk of organizations (Artaza & Galleguillos, ; Fazekas et al, ; Hnylytska et al, ; Pulay & Lucza, ). However, these research studies mostly focused their bribery risk analysis solely on objective factors and therefore omitted some areas of activities in organizations where risk of bribery may exist but cannot be mapped by objective indicators.…”

“…There is a requirement for risk assessment, but the standard does not provide instructions on how to implement this request under the terms of a specific organization. Several authors (Qian, ; Artaza & Galleguillos, ; Chen et al, ; Krishnamurti et al, ; Pulay & Lucza, ; Hnylytska, Ortynska, Blikhar, & Andienko, ; Shi & Wang, ; Luque & Herrero‐García, ; Costa & Mainardes, ; van der Wal et al, van Der Wal, Graycar, & Kym, ; Kim & Metaksa, ; Hansen, ; Schwartz & Tilling, ; Loughman & Sibery, ) attempted to create a risk assessment for the organization's needs, but such evaluations either did not include bribery or could not be applied in all organizations regardless of size, type of business activity, and so forth. Based on this research, it is obvious that some management systems have weaknesses of solving the problems they are aiming to solve.…”

“…However, the strength of the integrity control systems put in place to prevent bribery risks primarily depends on the subjective factors that were not analysed in detail. Hnylytska et al () found, that most of anti‐bribery measures adopted by organizations are formal and amount to the adoption of political documents. Our proposal of the BRI provides a foundation for creation of specific measures to mitigate bribery risk in specific area.…”

Economic and Legal Aspects of Ensuring the Effectiveness of Counteracting Corruption in the System of Anti-Corruption Measures of State Authorities

“…We propose to deepen research on the level of ensuring the effectiveness of counteracting corruption by state authorities in the direction of evaluating the parameters of the effectiveness of each of the anti-corruption bodies in Ukraine in the dynamics for 2020-2022 (estimated data for 2017-2019 are not available) (Figure 3). The most pessimistic indicators are related to the anti-corruption fight of the Cabinet of Ministers of Ukraine, whose activities are not able to ensure the slightest progress in improving the effectiveness of counteracting corruption [21].…”