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Financial Risks

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In the defence sector a culture of secrecy can create an environment in which good financial practices, such as auditing by an external division, are not employed on the grounds of national security.

Asset Disposals

Often conducted ‘below the radar’, asset disposals are a prime area for corruption, but one that can easily be addressed with effective controls. Read more.

Secret Budgets

Secret defence and security budgets are a perennially difficult issue. A crucial ingredient in the creation of accountable armed forces and defence and security establishments is an effective and transparent process of allocating, managing and overseeing their resources. Read more.

Military-owned Businesses

In many countries, defence and security establishments maintain income sources separate to their state revenue streams. These include military-owned businesses, either civilian businesses or defence companies which are directly or indirectly owned by the defence establishment. These pose obvious integrity risks. Read more.

Illegal private enterprises

Illegal private enterprises are a form of misuse of assets, and come about when individuals gain an income from state-owned assets. A system of patronage between the military and private business is highly detrimental; the more profitable it becomes, the more difficult it is to counter. Read more.