Cryptoasset Anti-Financial Crime Specialist (CCAS) Certification Practice Test

True or False: Some industries are at higher risk for bribery than others, especially those driven by government contracts.

1. True

2. False

3. Depends on the industry

4. Only if international

The correct answer is: True

The statement is indeed true because certain industries, particularly those that rely heavily on government contracts, do face a heightened risk of bribery. This is often due to the substantial financial stakes involved, as well as the potential for competitive advantages that can be gained through unethical practices. Industries such as construction, defense, and oil and gas are frequently highlighted as particularly vulnerable to bribery because they rely on governmental approvals, permits, and contracts. In these sectors, the interaction between public officials and private companies can create opportunities for corrupt activities, as companies may be willing to offer inducements to secure contracts or favorable treatment. Additionally, the complexity and bureaucratic nature of government procurement processes can further exacerbate the risk of bribery. While other sectors can also be involved in bribery, those with significant government engagement witness higher incidences due to the power dynamics and financial implications at play. Thus, understanding the context of government contracts illuminates why industries in this domain are predisposed to higher bribery risks.