Dr. Matthias Kopetzky

1. Dr. Matthias Kopetzky  Research Project Gender & Corruption: Does the gender-mix in the workplace have a potential influence on corruption?

2. Some strange questions? Is the fight against Corruption a main issue for internal audit? Does prevention has any meaning in corruption? Is there a difference between males and femals becoming perpetrators in corruption cases? Is the gender-mix in teams relevant for the likelyhood of developing a corruption scheme?

3. Some strange answers! • Since years we repeated one question to collegues: • Did you ever had a corruption case with one or more women as main perpetrators? • At least in the DACH-Area (Germany, Austria and Switzerland) we received – sometimes to the surprise of the interviewed person – the same answer: • No Cases • We wanted to know on a broad, statistical base • IIA Austria started a research project named „Gender & Corruption“

4. What did science find out in general on the role of women and men in corruption schemes? Study “Gender and Corruption” by Swamy et al (2000)2 Women are less likely to be involved in bribery Corruption is less severe, when more women are present The “LIMA”-experiment in Peru Study “Are Women really the ‘fairer’ sex?” (Dollar et al 2001) 3 the higher the representation of women in parliament, the lower the level of corruption. Study “Investigating the role of gender over time” (Frank and Schulze 2004)4 “The results reveal a higher willingness to comply among women…” 2) see A. Swamy u. a., „Gender and corruption“, Journal of Development Economics 64, Nr. 1 (2001): 25–55 3) D. Dollar, R. Fisman, und R. Gatti, „Are Women Really the“, Journal of Economic Behavior & Organization 46, Nr. 4 (2001): 423–429 4) Benno Torgler und Neven Valev, „eScholarship: Public Attitudes toward Corruption and Tax Evasion: Investigating the role of gender over time“, o. J., http://www.escholarship.org/uc/item/3983136n?display=all#

5. Recent research results from others Swamy et all from 2001 Using several independent data sets, we investigate the relationship between gender and corruption. We show using micro data that women are less involved in bribery, and are less likely to condone bribe taking. Cross-country data show that corruption is less severe where women hold a larger share of parliamentary seats and senior positions in the government bureaucracy, and comprise a larger share of the labour force.

6. What did science find out in general on the role of women and men in corruption schemes? Study “Gender and Corruption” by Swamy et al (2000)2 Women are less likely to be involved in bribery Corruption is less severe, when more women are present The “LIMA”-experiment in Peru Study “Are Women really the ‘fairer’ sex?” (Dollar et al 2001) 3 the higher the representation of women in parliament, the lower the level of corruption. Study “Investigating the role of gender over time” (Frank and Schulze 2004)4 “The results reveal a higher willingness to comply among women…” 2) see A. Swamy u. a., „Gender and corruption“, Journal of Development Economics 64, Nr. 1 (2001): 25–55 3) D. Dollar, R. Fisman, und R. Gatti, „Are Women Really the“, Journal of Economic Behavior & Organization 46, Nr. 4 (2001): 423–429 4) Benno Torgler und Neven Valev, „eScholarship: Public Attitudes toward Corruption and Tax Evasion: Investigating the role of gender over time“, o. J., http://www.escholarship.org/uc/item/3983136n?display=all#

7. Recent research results from others Doller et al from 2001 Numerous behavioral studies have found women to be more trust-worthy and public-spirited than men. These results suggest that women should be particularly effective in promoting honest government. Consistent with this hypothesis, we find that the greater the representation of women in parliament, the lower the level of corruption. We find this association in a large cross section of countries; the result is robust to a wide range of specifications.

8. Our Questions: Hypothesis 1: In less then 10% of the corruption cases women act as main perpetrators.

9. Our Questions: Hypothesis 2: In corruption cases, which include women as perpetrators, those women play minor roles in comparison to their male comrades in the scheme.

10. Our Questions: Hypothesis 3: The more women are working in a reviewed unit the less likely a corruption scheme may evolve. In women-only groups corruption tends to zero.

11. Our Online-Survey

12. Our Online-Survey

13. Our Online-Survey

14. Why did we start this? Important Question Based on individual experience Now make it scientific viable Possible strong Way of Prevention If stronger involvement of women in corruption prone areas could help prevent corruption Survey results interesting to many groups We see it as a chance for the national IIA´s to get strong publicity for this study Gender equality is a prime issue to many groups A surprising new Argument In the gender discussion In corruption prevention

15. What did we find out on individual experience in cases of corruption? Our own experiences? No female involvement in cases Chance of Prevention? Just bring in more women? Q: Is Gender an issue if we look at the perpetrators? By Region? By median loss?

16. The IIA-Austria Study 2012 4 different corruption schemes Diff. Typs of Cases Finished Suspicious 378 participants in the study Double commitment

17. The IIA-Austria Study 2012 – Cases from Internal Auditors • Relationship by Perpetrator, secondary Perpetrator and Whistleblower

18. The IIA-Austria Study 2012 – Cases from Internal Auditors • “Direction” of benefits • Did perpetrators offer or accept benefits? • Result • More Cases with “Acceptance”

19. The IIA-Austria Study 2012 – Cases from Internal Auditors • Executives – The tone from the top • Was the head of the department affected male or female? • Internal oriented departments • Purchase oriented departments • Customer oriented departments

20. The IIA-Austria Study 2012 – Cases from Internal Auditors • Gender-Mix in affected departments • What was the gender-mix in the involved departments?

21. The IIA-Austria Study 2012 – Opinion of Internal Auditors • Gender of potential perpetrator • Are Male or Female more prone to corruptive behavior? Remember! Only 17,9% females in Europe

22. The IIA-Austria Study 2012 – Opinion of Internal Auditors • Gender of the head of department • Is the Gender of the head of a department influential to the risk, that a corruption case develops? Tone set by the Top

23. The IIA-Austria Study 2012 – Opinion of Internal Auditors • Relevance of the Gender-Mix • Is the Gender-Mix in a Department influential to the risk, that a corruption case develops?

24. The IIA-Austria Study 2012 – Opinion of Internal Auditors • Most risky Gender-Mix? • What is the riskiest gender-mix in a department for corruption cases to develop?

25. Conclusions (1) • There are more males engaged in corruption cases • The data of the analyzed cases show • That there on average are much more males than females engaged in corruption cases • That the head of involved departments, was male in the majority of cases • this might also be caused by the fact, that there are still more males than females in leading positions. • That there are relatively more female whistleblowers, but more men in absolute numbers.

26. Conclusions (2) • Opinion of participating Internal Auditors • 88% believe, that males are more prone to corruption • This supports our hypothesis, that females are hardly ever involved in corruption cases • 34% believe, that the tone set by the top through the head of the department is relevant • 28% are unsure and 38% don't share the opinion, that there's a gender issue • 38% believe, that the gender mix in a department is relevant • 24% are unsure and 38% don't believe, there's a gender issues • Internal Auditors have a clear idea, that • the higher the number of males in the group, • the higher the risk of corruption in the group.

27. Conclusions (3) • Prevention: • Even if we don't know the causes • The results suggest • That engaging more females in areas vulnerable to corruption could have a containment effect • Risk of such preventive activities is zero • Cost of such preventive activities is zero • In case of more Questions • Dr. Matthias Kopetzky, CIA • Matthias.kopetzky@internerevision.at • If you want to try the survey • http://internerevision.limequery.com/58193/lang-en • http://internerevision.limequery.com/58193/lang-de • http://internerevision.limequery.com/58193/lang-es • http://internerevision.limequery.com/58193/lang-fr • http://internerevision.limequery.com/58193/lang-it • http://internerevision.limequery.com/58193/lang-hr

28. Mag. Dr. Matthias Kopetzky, CIA,CFE,CPA • Active Job Position • CEO of Business Valuation Gutachten- und Unternehmensberatung GmbH • (seit 1998) • Professional Experience • Business Consultant • Managerial positions in the IT Industry • HFP-Auditors (Vienna) • CEO of Business Valuation Gutachten- und Unternehmensberatung GmbH • Permanent Expert Wittness in Austrian Courts • Specialist all aspects of economic crime • Engagements • Member of the Board at IIA Austria • Certified Fraud Examiner CFE und Mitglied der ACFE (Association of Certified Fraud Examiners) • Certified Public Accountant CPA/Maine/US • Certified Internal Auditor CIA und Mitglied des IIR (Institut für Interne Revision in Ö) • Lecturer at various universities (Vienna, Wr. Neustadt, Innsbruck, …) • Chair of Special Interest Group “Economic Crime” at the IIA-Austria Folie 29

29. Mag. Dr. Matthias Kopetzky, CIA,CFE,CPA Books and Articles Wells-Kopetzky: “Handbuch – Wirtschaftskriminalität in Unternehmen” (LexisNexis-Orac, Wien) “Das Risikomanagement aus der Sicht der Internen Revision“- Autorengemeinschaft (Linde) Hrsg: IIR Österreich Kopetzky, Matthias: „Case 55 - Double Damage“ in Wells, Joe (Hrsg): Fraud Casebook – Learning from the bad side of Business (Wiley, 2007, N.J. USA) Kopetzky, Matthias: „Neue Bedeutung der Korruption im Strafrecht“ in Fellmann/Klug: IKW-Band 116 – Vademecum der Korruptionsbekämpfung (2008, Kommunale Forschung Österreich) Kopetzky, Matthias: „The Fraud Factor“ in The CPA Journal, April 2008, New York Kopetzky, Matthias: „Schutz vor Mitarbeiterverfehlungen in Banken“ in Die gewerbliche Genossenschaft, Jg 136, Ausgabe 9-10/2008, S 20ff Folie 30

30. Mag. Dr. Matthias Kopetzky, CIA,CFE,CPA Presentations and Seminars • FH Wr. Neustadt • Computerunterstütztes Controlling • Beraterverhalten in krisenhaften Unternehmen • FH Wien – Unternehmensführung • Einführung in Prävention und Aufdeckung von Wirtschaftskriminalität für Betriebswirte • Aufdeckung und Prävention von Wirtschaftskriminalität in Fallbeispielen • Akademie für Interne Revision • Wirtschaftskriminalität - Mein Unternehmen an der Nahtstelle zu Justiz und Polizei • IIR – Institut for International Research • Zertifizierter Bank-Innenrevisor • Themenbereich Wirtschaftskriminalität in Banken • "Interne Revision in der öffentlichen Verwaltung„ • Kampf gegen die Korruption • „Compliance in der öffentlichen Verwaltung„ • Hinweisgebersysteme • Gefährdungsanalyse in der Finanzindustrie • Gemeinsam mit Peter Zawilla (D) • Sicherheitsakademie der Exekutive (BM f. Inneres) • Betriebswirtschaftliche Grundlagen für die Erkennung und Bearbeitung von Wirtschaftskriminalität • Fallstudien-Training – Erkennung und Dokumentation von Zahlungsunfähigkeit in Unternehmen • Sachverständigenverband Tirol/Vorarlberg • Unternehmensbewertung aus der Sicht des Gerichtssachverständigen • Slovakische Bankenaufsicht • Fraud in Banks (EU-Projekt) • Wertpapieraufsicht der Volksrepublik China • Anlagebetrug – Aufdeckung und Prävention (EU-Projekt) • Raiffeisen Akademie • 2-Tagesausbildung f. Interne Revisoren zum Thema „Wirkungsvoller Malversations-Schutz für die Raiffeisenbank“ • Frankfurt School of Finance & Management • Mitarbeiterkriminalität: Methoden der Prävention und Sonderuntersuchung • Dozent im Zertifikatsstudiengang „Certified Fraud Manager CFM“ • Dozent im Zertifikatsstudiengang „Certified Compliance Professional CCP“ • BIA – Büro für Interne Angelegenheiten (BM f. Inneres) • Tagesseminar im Rahmen der 3-wöchigen Spezialausbildung zu Korruption: Korruptionsbekämpfung in der Privatwirtschaft (jährlich 2x) • Institut Interne Revision Deutschland • Vortrag Jahrestagung 2007 in Köln: Case Management in Fraud Untersuchungen • Vortrag Jahrestagung 2008 in Berlin: Was KMU aus bekannt gewordenen Fraud Fällen lernen können • Vortrag Mittelstandstagung Leipzig: Überlegungen zur Standardisierung von Fraudfall-Abwicklungen (mit Peter Zawilla/Bielefeld) • IIA-Hungary - 3. Internationale CEE Konferenz „Diversity of Auditing“ • Vortrag „Audit of Antifraud Management“ • 2. Staatsanwälte Convent 2007-Mattsee (OSTA Linz) • Der Sachverständige im Wirtschaftsprozess • Arbeiterkammer Wien - IFAM • Ausbildung von Aufsichtsräten zu Risiken im Bereich Wirtschaftskriminalität • Sicherheitskompetenzzentrum der Sparkassen • Schutz vor Mitarbeiterverfehlungen in Banken Folie 31