The ISO Standard has 10 clauses and an organisation that seeks to successfully establish, implement, maintain, and continuously improve an anti-fraud, corruption, bribery, and money laundering management system must meet the requirements of clauses 4-10 of ISO 37001.
Strategic management focuses on maximising profits, sometimes irrespective of how this is achieved. Organisations need to act ethically and be transparent in every business transaction. We often find that employees from all levels within organisations are caught up in acts of fraud, corruption, and bribery to achieve the profit targets set by management.
The ISO standard prescribes the best strategies to manage an organisation’s risk of fraud, bribery, and corruption. Management needs to demonstrate leadership and commitment to the anti-bribery, fraud, corruption, and money laundering management system by ensuring that the system, which includes policy and objectives, is established, implemented, maintained, and reviewed to adequately address the risks associated with acts of this nature. ISO 37001 not only facilitates effective controls in the war against corruption but also promotes the efficiency and productivity of an organisation.
Transparency and trust are the building blocks of any successful organisation’s credibility. Nothing can ruin an organisation’s reputation and credibility as quickly as rumours that an organisation is involved in acts of fraud, bribery and money laundering. Implementing the ISO 37001 management system will protect your reputation and brand, promote trust and confidence, and establish a strong anti-bribery, fraud, corruption, and money laundering culture among all employees. This in turn promotes trust and confidence with clients, business partners, investors, and other clients knowing that there is an effective management process in place to mitigate risks of this nature.
It will become increasingly more difficult to conduct business in South Africa and with Government organisations without demonstrating that an effective anti-bribery, fraud, corruption, and money laundering management system is established, implemented, maintained, and continually reviewed and improved in organisations.
Verifiable evidence to support compliance will soon become the minimum requirement during business negotiations, tender processes and contractual obligations. Hence, it is the right time for all governmental and non-governmental organisations irrespective of the size and nature of their business, to embrace these management processes and demonstrate responsibility to conduct business ethically and transparently and ensure sustainability.
Johan van Dyk
Executive Head: XTND