Trust not enough to prevent abuse in SMEs, EY warns

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While 75% of leaders of Hungarian SME believe trust in their employees is enough to preventing mishandling and abuse, 5-7% of their annual revenues are lost to those very causes, a joint survey by EY Hungary and the Institute for Economic and Enterprise Research (GVI) reveals, according to a press statement sent to the Budapest Business Journal

Just 8% of SME leaders in Hungary believe that corruption or bribery is present in the operations of their companies, and only 3.7% of them believe that their employees are leaking confidential information or sensitive data from the company, the survey found. That is despite the fact that 9.5% of the respondents in the survey said that their companies have been hurt by some kind of abuse in the past five years. EY believes this raises the question whether company leaders realize the signs of abuse or corruption.

“Although the presence of trust in the Hungarian SME sector is joyful, unfortunately experience shows that it alone is not enough,” Lívia Fábián of EY said. “For the stable and reliable operation of an SME, beyond trust, controls are needed that uncover possible abuse and to prevent or decrease the damage caused by such,” she added.

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