In order to provide compliance officers with the appropriate tools, Global Risk Profile has developed a unique measure of worldwide corruption. The Global Corruption Index (GCI) allows the identification and classification of a party’s risk exposure depending on its geographical localization, in compliance with current legal requirements such as the French law “Sapin II”.
The GCI is based on 42 open source datasets that exclusively originate from internationally recognized entities.
With the objective to allow users to evaluate and compare country results between them, data were standardized and aggregated to a 0-100 scale, where 0 corresponds to the lowest risk and 100 corresponds to the highest risk.
Encompassing as much as 196 countries and territories, the Global Corruption Index stands out
for its global approach. Its results display the risk exposure deriving from both the public and private sectors. The GCI also includes issues related to white collar crimes, and more specifically to money-laundering and terrorism financing.
Dynamic and functional, the Global Corruption Index can be adjusted depending on the specific
issues or challenges faced by anti-fraud professionals. A flexible and easy to adapt weighting is
provided, allowing a focus on more sensitive indicators.
As corruption can’t be directly estimated, it is a challenging dimension to measure. In this regard, the GCI relies on various methods for collecting data reflecting the variety of ways available to estimate corruption, to further the objective of providing our clients with estimates as close as possible to real values. These methods notably include both soft data obtained through surveys (of perception, of experience) and hard data collected at the state or supranational level.
6 indicators are considered to calculate the GCI, 4 focused on corruption and 2 on white collar crimes:
- The ratification status of key conventions (OECD, UN).
- The level of perceived public corruption (Transparency International’s Corruption Index, World Bank data, World Justice Project Organisation data).
- The reported experience of public and private corruption (Transparency International’s Global Corruption Barometer, World Bank’s Enterprise Survey).
- A selection of country characteristics closely linked to corruption.
- White Collar Crime standards.
- Money laundering and terrorism financing.
Country characteristics are meant to capture prevention mechanisms, related effects, causal effects and consequential effects, with the objective of unearthing latent corruption information. This indicator is divided into 4 groups of data:
– Citizen’s voice and Transparency
– Government Functioning and Effectiveness
– Judicial Context
– Political Context
November 22, 2022 Published by The Global Risk Profile. (Download Report)