European firms 'fear investigation'

News Article - Friday, March 16, 2007

filed under: Business

Many businesses in Europe are worried that they will be investigated by regulators within the next year.

According to a study by law firm DLA Piper, 40 per cent of companies have expressed concern that professionals will be drafted in to examine their practices, Accountancy magazine reports.

These companies are not adequately managing the risk factor which comes with having a business, the survey suggests, with many firms having a "blind spot" with regard to ensuring mechanisms are in place to protect their reputations.

Some 57 per cent of respondents think that it is likely that their business will be investigated in the next 12 months, with 76 per cent stating that they believe the risk of receiving criminal penalties is set to grow over the next five years.

Neil Gerrard, DLA Piper's global head of regulatory and government affairs, said: "Directors are facing extradition, imprisonment and fines. Companies need to be aware of and manage this risk. They owe it to themselves and their shareholders."

Website SecurityPark.net advises firms not to take risks with their IT management, by making sure they always capture all critical information and do not allow for unauthorised access to data.

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