The Chamber has now released the 2011 Economic Crime Survey report with the assistance of KRyS Global. This is the second report of this kind released by the Chamber. The aim of this report is to provide a comprehensive assessment of the nature and the impact of economic crime on businesses in the Cayman Islands whilst reviewing the trends and developments since the previous report in 2006.
Of the 205 companies sent the web-based survey, 179 companies completed it. All of these businesses are located in the Cayman Islands. 39% of these respondents were from the financial, legal and insurance sectors with a further 20% from wholesale and retail trade.
The report shows that there was only a slight increase in the percentage of businesses experiencing economic crime between 2006 and 2011. 32% of the respondents stated that economic crime had a greater impact on them than the previous year compared to 27% in 2006. 46% of respondents expected the threat to increase over the next 3 years compared to 50% in 2006.
In relation to property crime 29.3% of the 2011 respondents thought that physical property crime has had a greater impact on their business than last year. Top concerns for businesses were theft and break and enter crimes increasing loss-prevention measures such as human security, CCTV and alarms. Respondents also indicated that they would like to see tougher penalties for offenders and have additional money spent on prevention and law and social development.
“The Chamber is very pleased to partner with KRyS Global on this important report. Their professional approach and attention to detail is second to none. The views of our members are paramount to making solid recommendations for new policy and this document will contribute significantly to any recommendations made to Government and/or associations.” Chamber President, David Kirkaldy
“KRyS Global is pleased to contribute to the economic crime solution in the Cayman Islands. Government bodies and those entrusted to protect may find the information on economic crime useful in understanding the perceived risks of Cayman’s business community and finding solutions to the prevalence of this type of crime. This allows us to remain focused on the real concerns and not perceived concerns that can often arise.” Ken Krys, CEO, KRyS Global
Key highlights from the 2011 survey are:
• The main threats to Cayman businesses are come from money laundering, embezzlement (asset misappropriation) and insolvency/insurance fraud.
• Identity theft, bribery and corruption are also major concerns.
• Over one third of Cayman businesses indicated they were involved in at least one instance of economic crime in the past year.
• Many businesses are still unaware of the extent of economic crime.
• Only 42.1% of boards had formal risk management training and 66.1% of Cayman businesses fully train their staff in the same.
• Only 70.6% of Cayman businesses state that their current crime prevention systems are sufficient.
• 27.1% are concerned about the potential damage to their business’ reputation; and 68.8% are concerned with impact on their shareholder equity.
• Just under half expect the threat of economic crime to increase over the next three years.
• Many businesses believe that the Government, law enforcement and industry associations can do more to combat economic crime.
• Few businesses are prepared to share information relating to economic crime incidents.
FULL REPORT