Managing Director, Hong Kong
Against the backdrop of China’s slowing economy, rising tensions due to trade tariffs and economic rivalry, and increased allegations of hacking and corporate malfeasance, multinationals are facing a brewing storm over their operations in China. This increasingly pressurised environment is ripe for more fraud and corruption. At the root of the problem lies an unprecedented high level of risk, as corruption, declining revenues, channel stuffing, supply chain fraud, and employee wrongdoing converge.
Foreign companies in China have put considerable effort and investment into building compliance and fraud prevention programmes, but as the external pressures increase, more will need to be done to stay ahead of a rapidly evolving situation. Companies need to reassess the effectiveness of their programmes to weather the coming storm.