It's not easy doing business in China -- just ask local executives in the Middle Kingdom.
Commercial investigative firm Kroll has found some interesting numbers.
73 percent of China-based executives are affected by fraud, up 6 percent from last year. China is the most vulnerable in nine out of 11 types of fraud types, making these executives the most afraid of risks of fraud than anywhere else in the world. The annual survey interviewed 768 senior executives worldwide.
87 percent of Chinese executives say they are vulnerable to theft of physical assets or shares, much higher than the global average of 62 percent.
81 percent of Chinese executives worry about theft of their corporate information, compared to the global average of 51 percent.
81 percent of Chinese executives worry their companies will face the risk of corruption and bribery, compared to the global average of 40 percent.
74 percent worry about cheating by suppliers;
71 percent about having intellectual property stolen;
69 percent about internal fraud;
69 percent misappropriation of company funds;
65 percent conflict of interest;
65 percent regulatory compliance;
64 percent market collusion;
63 percent money laundering.
The global average for the above numbers is between 26-49 percent.
It is also interesting to add that Kroll found 35 percent of Chinese executives surveyed had invested in staff due diligence, considering 72 percent of fraud causes are because of insiders.
And only 53 percent of Chinese executives hired companies to do due diligence on their partners or vendors even though 74 percent of them felt vulnerable to fraud by vendors and suppliers.
What does this say about China?
There isn't much of a culture of corporate governance, and how it is important to have internal controls.
Wonder how Chinese executives manage to sleep, if at all...