The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

Bangladesh’s risk landscape: analyzing the undercurrents

Bangladesh is one of the 10 emerging markets of the future and the second-fastest growing economy in the world. Its strategic geographic location and natural resources provide the potential to develop strong commercial ties with the rest of Asia. Bangladesh is also one of the world’s most densely populated countries, offering ready access to a large consumer base. The International Monetary Fund has projected around 7% Gross Domestic Product growth for Bangladesh in the financial year FY18.

EY - Bangladesh’s risk landscape: analyzing the undercurrents

Bangladesh’s risk landscape: analyzing the undercurrents

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Contacts

Arpinder Singh
Partner and Head – India and Emerging Markets
+91 12 4443 0330

Vivek Aggarwal
Partner
+91 12 4464 4551

Kartikeya Y Nath
Associate Partner
+91 33 6615 3440

Key growth sectors in Bangladesh

EY - Key growth sectors in Bangladesh

Key fraud risks factors

EY - Counterfeit and grey market product

Counterfeit and grey market products

EY - Conflict of interest (e.g., employee and vendor)

Conflict of interest (e.g., employee and vendor)

EY - Vendor favoritism and kickbacks

Vendor favoritism and kickbacks

EY - Employee fraud (misrepresentation or misappropriation)

Employee fraud (misrepresentation or misappropriation)

EY - Data security, cybercrime and insider threats

Data security, cybercrime and insider threats

EY - Workplace safety and prevention of sexual harassment at the workplace

Workplace safety and prevention of sexual harassment at the workplace

EY - Modern slavery

Modern slavery

EY - Internal controls not commensurate with business growth

Internal controls not commensurate with business growth

EY - Balancing monetary pressure and company profitability

Balancing monetary pressure and company profitability

EY - Regulatory compliance

Regulatory compliance

Toward leading industry practices

As Bangladesh strives to capitalize on business growth opportunities and cultivate a positive commercial environment, combating fraud risks is a priority for companies operating in the region.

EY’s Forensic & Integrity Services practice conducted a survey with business professionals in the region to understand their perception of fraud and corporate misconduct in Bangladesh.

89% of the respondents believe companies should self-report cases of fraud, bribery and corruption to the appropriate authorities

58% consider paying bribes as unethical but necessary to conduct business

25% believe it is not a company’s responsibility to monitor activities managed by its vendors or third parties

Conclusion

Global businesses know that robust internal controls and anti-fraud frameworks help mitigate threats at an early stage. With a growing number of multinationals looking to expand their presence in the country, companies operating in Bangladesh need to take a cue from more mature economies and apply leading global practices to help deter fraud.