Page 10 - Carbon Frauds and Corruption
P. 10
CARBON FRAUD No laughing matter...
THE CARBON WORLD IS HIGH RISK
Banking & the "Carbon World"
We could not agree more. The detailed risk catalogues and control matrices developed by
Cobasco Group Limited are proprietary but are available to Clients. They go beyond the
approach suggested under Sarbanes-Oxley on which the following assessment is based.
CONTROL
ENVIRONMENT
Regulatory Framework Tone from the Top
Sanctions Ethical Consistency
Monitoring & Investigation Credibility
Fraud Detection Stability
Control Resources Targets and Metrics
DETERRENCE RISK
ASSESSMENT
Compliance Assets control
Authorisation Awareness & Intelligence
Processes Integration
Policies High risk contexts
Accountability Anti-corruption controls
CONTROL
STRATEGIES
The above figure assesses the control environment of the financial markets in 2007
and 2008 immediately prior to their collapse (Orange shading) and the state of the
'Carbon World' (Yellow shading) today. The nearer a factor is to the outer circle, the better.
Every participant in the Carbon World is exposed to fraud, involving a variety
of potential perpetrators.
Cap and trade schemes are a “zero sum game” in which those
who falsify results benefit immediately. They also gain longer
term advantages over their competitors.
Page 07 - © Cobasco Group Limited 2010
