The objective of this series of ideas or short articles is to provoke the readers’ mindset regarding a significant threat that jeopardizes entity’s success and existence: corruption.
Corruption is a complex socioeconomic cultural phenomenon. As tone will always be at the top, management cannot ignore such a significant issue. Executive management and those charged with governance are expected to integrate corruption prevention measures in strategic planning.
In most of the cases, strategic planning fails in the execution stage. Corruption may be a part of the reasons underlying this kind of failure. The challenging question for management is to find out whether corruption participated directly or indirectly in the failure of its strategic planning or even plans. However, management should already have anticipated or expected corruption threats that may occur not only in the execution stage but also in the planning stage as well.
Therefore, one would expect prudent, vigilant, competent, and professional management to scan its internal and external environment searching for corruption risks that may negatively affect or impact any task or activity of its strategic planning.
Can management search for something they do not know? Can management evaluate the serious consequences for corruption risks they do not know their attributes? Simply, they can not. As a result, what executive management and those charged with governance should do? Management should have effective and up-to-date awareness about fraud and corruption to effectively play a proactive role in all strategic planning phases. Awareness is always the best defense.
Mike J. Masoud, CPA, CACM, CFE, CICA, MBA
Technical Advisory director, Middle East and Africa
The American Anti-Corruption Institute (AACI)
