EuroFinance survey reveals companies without formal procedures risk fraud going unreported

London - 23 July 2012

  • 37% of global finance professionals have witnessed serious financial wrongdoing in an organisation they have worked for
  • 66% of those working for organisations with no formal reporting procedure agree that whistleblowers risk damaging their career

A recent survey by EuroFinance, the global specialists in treasury research and events, has revealed that over a third of finance professionals have witnessed serious financial wrongdoing in organisations they have worked in. Respondents who worked in banks or financial institutions were more likely to have witnessed this type of activity (41%).

Respondents went on to reveal that in 38% of cases where financial wrongdoing is detected, the culprits were sacked but the issue was hushed up. Interestingly, banks or financial institutions were most likely to prosecute wrong doers (76%) compared to corporations (58%).

When asked about the perceived risks of being a whistleblower, 57% of respondents agreed with the statement “Whistleblowers risk damaging their career”. This went up to 66% in organisations that either had no formal reporting procedures, or employees were unaware of formal procedures.

“From the statistics and additional commentary, there was a very clear message – company culture and formal procedures have a direct influence on the perceived risks of being a whistleblower. If financial wrongdoing is to be stamped out within organisations, employees need to know that they will be supported and protected by those at the top.” says Katharine Morton, Managing Editor at EuroFinance.

Corporate fraud and the consequences of being a whistleblower will be explored in further detail at EuroFinance’s flagship international treasury conference, 26-28 September in Monaco. Former CEO of Olympus, Michael Woodford, will be sharing his story about why he decided to expose the $1.5bn accounting fraud he uncovered and the consequences on his career, life and family.

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