The summit kickstarted with topics such as the interpretation of the new anti-corruption policy, the interpretation of the latest anti-bribery policy in the pharmaceutical industry, and the sharing of best practices for businesses in high-risk markets. Leaders and representatives of renowned international institutions and organisations were invited to grace the event, to discuss the best compliance solutions with fellow participants, from the macro-level environment analysis to the micro-level practice and operation, based on their respective compliance and anti-bribery experience.

The objective of the summit is to invite industry leaders to discuss the challenges the global business community is facing in the area of anti-bribery and compliance. Based on relevant statistics, global corruption costs between $1.5 and $2 trillion in bribes annually, and corruption remains a pressing social issue today. Under the table deals, kickbacks and collusion between business and government officials have severely impeded the path of healthy business development.

Professional consultants from Central Business Information Limited’s (CBI) compliance audit department was honoured to have participated in this summit to support the industry’s development needs and help enterprises better deal with anti-corruption issues, by addressing questions that the guests have at the event. We learned from our guests that businesses currently have three major questions on compliance auditing, and our consultants provided detailed answers to these three key questions as follows.

Is compliance auditing truly necessary?

CBI has certain insights into conducting compliance audits for businesses based on our successful experience and track record. Business executives have carried out corrupt practices and other irregularities, and such misconduct at the management level will be a fatal blow to the development of the company. In addition, commercial bribery in major industries such as the pharmaceutical industry is a matter of life and death, and could even lead to negative public opinion.

Novo Nordisk's Senior Compliance Counsel, Ms. Gu Wenyan, mentioned during the summit that the three major risk areas in the pharmaceutical industry are sponsorship and donation campaigns, third-party intermediaries, and interactions with medical and healthcare professionals. In the area of third-party intermediaries, there are emerging risk trends against the context of challenges in law enforcement in recent years, and the increasingly complex business processes internally. And therefore, it is essential to carry out risk assessment, due diligence reports - including the maintenance of a blacklist and a whitelist – as well as the establishment of efficient risk warning and risk management processes at the early stage. Digital solutions should also be implemented to facilitate interaction with healthcare professionals.

Against the backdrop of globalisation today, all industries need to be equipped with awareness on compliance auditing. In our previous articles, we also explained the reasons and significance of how compliance auditing will become a standard for businesses. Please click the links below for more detailed coverage.

COMPLIANCE AUDITING WILL BECOME A STANDARD FOR BUSINESSES

During the roundtable discussion, Anga R. Timilsina, the UNDP’s Global Programme Advisor on Anti-corruption, pointed out that UNDP is the world’s largest multilateral aid agency deployed in over 150 countries. The organisation’s role is to provide professional advice, training and other support mechanisms to developing countries. Compliance audits are essential in the challenging global landscape today, with many countries that have signed global treaties and conventions to combat corruption.

WHAT IS THE BUSINESS VALUE OF CONDUCTING A COMPLIANCE AUDIT REPORT?

CBI constantly optimises its compliance audit service offerings to help companies maximise business value. Our compliance reports are available in the following categories, to meet the different needs of businesses conducting compliance audits.

SUPPLIER COMPLIANCE REPORT

We can perform audits on suppliers' capacity, capabilities, and legal compliance, to mitigate the risk of cooperation.

DISTRIBUTOR COMPLIANCE REPORT

We can perform operational audits, and audits on distributors’ assets and liabilities, to take the risk out of your accounts receivables.

SOCIAL COMPLIANCE REPORT FOR ORGANISATIONS

Targeted at institutions, foundations, associations, and other NGOs, to verify the authenticity, compliance and legality of organisations.

SITE INVESTIGATION

Conducting customised projects based on different needs of our clients, including services such as questionnaire interview, meeting follow-up, inventory audit, mystery shopper, on-site supervision on targeted and thematic reviews.

DYNAMIC MONITORING

Conducting periodic dynamic monitoring on businesses' basic information, litigation records, news and media search, based on the client’s compliance needs. CBI provides a range of services, from basic information verification, business processes optimisation, management consulting, to more systematic integrated solutions. Our services aim to help businesses to further control management costs, and reshape their compliance framework.

HOW CAN BUSINESSES CONDUCT A PROPER COMPLIANCE AUDIT

The establishment and implementation of a compliance system require having a clear picture of the current compliance status of your company, to have an all-round understanding of the potential exposure to compliance risks. Compliance management is considered to be one of the three pillars of corporate management, alongside business management and financial management.

An internal compliance audit takes various factors into consideration, including the system of internal control, the company’s financial risk, the robustness of the company’s accounting policies, the company’s operational sustainability, corporate governance, and the company’s legal compliance matters.

The two-day compliance summit was an unprecedented brainstorming session, and a dialogue on all aspects of addressing corruption and business malpractices. On the whole, compliance audits can help businesses develop healthily internally, while fostering mutually beneficial relationships with their partners.

CBI took this summit as an opportunity to network with our peers in the industry and representatives from the business sector. Guests at the event also expressed their recognition of our compliance audit service offerings.

In the future, CBI will continue to provide quality compliance audit services to our business partners, to shape and foster a more robust compliance framework, and in turn, help businesses grow consistently.