The Red Flag Group® has identified 23 risk area that should be part of every compliance risk management assessment. Organisations should consider the business impact of these risks when engaging with customers, resellers, distributors, suppliers, and employees to protect themselves from ethics, compliance and integrity risks. The IntegraWatch® | Compliance Screening database is refreshed daily with research against these 23 risk areas to provide up-to-date information to help you make informed business decisions.

GET TO KNOW THE 23 RISKS AREAS

 

RISK CATEGORY: Antitrust & Corruption 

There are seven integrity risks associated with this category. These risks are regulated by laws across the globe. The intention of these laws is to ensure companies conduct business in an ethical manner, promote fair competition for the benefit of consumers, and prohibit dishonest behaviour by individuals entrusted in a position of authority.

  • Corruption and bribery - Bribery and corruption is a growing risk area for any company that conducts business internationally.
  • Serious and organised crime - Economic crimes committed by organised crime groups cost big businesses billions of dollars each year.
  • Sanctions and exclusions - In today's shifting political environment, care needs to be taken as sanctions and trade embargoes have been levied by different countries on companies, individuals and countries.
  • Fraud, money laundering and financial irregularities - Financial crimes are not limited to large companies or big banks, and being aware of companies or individuals who are under investigation or have committed financial crimes will help mitigation efforts.
  • Export controls - Laws that stop certain dangerous products from falling into the wrong hands are continuously being updated around the globe.
  • Politics - Undue political influence, whether from interactions with a Politically Exposed Person or with a State Owned Entity, is one of the key indicators of unethical behaviour. 
  • Anti-Competitive Behaviour - Price fixing and collusion are crimes that are never in the open and which affects both businesses and consumers - the financial costs and costs to reputation can be sky high.
 
General_visual-img4.jpg
 

RISK CATEGORY: Employment, Safety & Reputation

An organisation's greatest assets can be its employees and its reputation. Therefore, compliance to laws and ethical practices that protect the well-being of employees also protects the business. These six risk areas focus on fair working environments for employees and conduct that could impact the reputation of companies.

  • Health and safety - Companies need to act with the highest levels of safety to protect their staff and customers. Safety is non-negotiable.
  • Diversity - Diversity in the workplace is a vital component in being successful today's multinational and multicultural world.
  • Employee rights - Employees should be treated fairly, with dignity and respect, and according to all laws, regulations, best practices and international standards.
  • Modern-day slavery - Closely linked with Employee Rights, employees need to be protected.
  • Materials labelling and handling - Suppliers can require the use and handling of hazardous properties that are of concern for human health and the environment.
  • Irresponsible marketing - Companies that uses misrepresentation to market their products may cause more than simply a cost to your reputation.
 

RISK CATEGORY: Cyber Security & Business Stability

An area with no shortage of media attention and concern for organisations is cyber security and business stability. The potential for harm over the mishandling of company, customer and product data can cause irreparable damage to an organisation. Moreover, the expectations for safeguarding of information from consumers is at an all-time high. The Red Flag Group has identified four risk areas for companies that focus on the potential for disruption, misdirection or mishandling of products and information.

  • Personal information mishandling - Personally-identifiable information of employees, customers and the public is protected by law. 
  • Data security breaches - Protecting the data that is shared with internal and external stakeholders is a constant battle as hackers and cyber crime become increasingly sophisticated.
  • Intellectual property infringement - Protecting your intangible assets is a major business focus to avoid their theft and misuse.
  • Business continuity - Well-managed, and prepared, companies will always have contingency plans to continue operations in the event of disaster or emergency.
 
General_visual-img2.jpg
     

    RISK CATEGORY: Environment & Governance

    Taking a critical look at the environmental impact of an organisation remains at the forefront for regulators and consumers. However, without proper measures and controls, it is difficult to assess the complete impact a company and its supply chain has through the manufacture and distribution of products and services. Companies can therefore receive negative press or reports of misconduct for the actions of suppliers without complete knowledge of their practices.

    • Chemical usage - Does your supplier use dangerous chemicals that are restricted? Do you unknowingly incorporate these into your products?
    • Emissions and waste monitoring - Are your suppliers putting profit before ethical behaviour or are they investing in careful and acceptable waste management?
    • Environmental stewardship - You might have targets, but are you including your suppliers in those targets? 
    • Sustainability - Does your suppliers have targets for sustainability, and do they communicate or involve you?
    • Product Regulations - Regulations represent controls to monitor and assess the products being created and provided - do your suppliers breach these regulations?
    • Illegal Animal Testing - Do you know how your suppliers test their products?