Anti-Corruption Chpt 7 Identification and Analysis

Here are the tools for identifying the risk of corruption and its analysis. These are adapted from risk management as set out in the international standards. Below is an example from the International Standard (ISO31010). It is an excellent Bowtie analysis template developed by Dr Dale F Cooper, Director of Broadleaf Capital International. I will use this in the textbook as a tool for students to analyse case studies. At first it looks complicated. However anyone can use it by working through it step by step. It is also excellent for teaching and training in groups as all the aspects can be discussed. In the manual/textbook, I will show some examples of its use.

The Importance of Time

The planning of an event, it goes without saying and yet is too often forgotten, takes place over a period of time. Every aspect has the time/cost/quality  decision hanging over it. Identifying the most exposed times over the period is a way to prevent corruption. For example at a certain time the event team will have to decide on the suppliers. This is the time when bribery, such as kick backs,  favoritism and even extortion can take place. Bringing in equipment and people from another country through the complexity of customs and immigration is another time to be aware of bribery demands or facilitation payments.  As illustrated by the story below, the most vulnerable time for an event is on the day and just before it starts.  All the value i.e. money, is riding on the smooth beginning of the event. The hustlers know this very well and it is surprising how they will use it to their advantage.

Story: an investor company had placed a lot of money  – over a million dollars – into a Gangsta Rap concert. The investor was smart enough to ensure the money from the ticket sales went to their company before it was handed over to the event company.  Everything looked good as the tickets were selling well and there were offers to take the concert to other cities.  The venue for the night had over 15,000 people.  The performers arrived in limousines. One of the important performers took the investor aside and demanded a bag of hashish before he and his act would go onstage.  This is an example of extortion. Illegal in many ways and the performer knew exactly the right time to demand it.

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