Global Recovery Rate

AAA

DEFINITION of 'Global Recovery Rate'

A global measurement in the proportion of businesses that managed to recover more than 60% of their financial losses arising from corporate fraud. Acquiring economic crime insurance and earlier detection of fraudulent activities from controls is two of the best methods in increasing the likelihood of recovering stolen assets.

INVESTOPEDIA EXPLAINS 'Global Recovery Rate'

According to data from PricewaterhouseCoopers' 2005 Global Economic Crime Survey, out of the 3600+ companies surveyed worldwide, it was found that 45% of them experienced some form of economic crime during 2003 - 2005. Unfortunately, the global recovery rate was only 27%. In other words, most firms affected by fraud and other economic crimes do not recover most of their losses, which can be substantial as the average amount of loss is $1.7 million.

RELATED TERMS
  1. Capital Recovery

    1. The earning back of the initial funds put into an investment. ...
  2. Badwill

    The negative effect felt by a company when shareholders and the ...
  3. Cook The Books

    A buzzword describing fraudulent activities performed by corporations ...
  4. Corporate Kleptocracy

    Buzzword that describes the greed of corporate executives who ...
  5. Salad Oil Scandal

    One of the worst corporate scandals of its time. It occurred ...
  6. Corporate Governance

    The system of rules, practices and processes by which a company ...
RELATED FAQS
  1. What was the Mahonia company and why did it become the subject of a lawsuit?

    In 1992, J.P.Morgan went into the energy trading business by creating a venture company called Mahonia Limited. At least, ... Read Full Answer >>
  2. What was the most notable hostile takeover of all time?

    The leveraged buyout of cigarette and food giant RJR Nabisco was called the “granddaddy of all takeovers” by a 1990 New York ... Read Full Answer >>
  3. Excessive trading is:

    A. acceptable if the client is young enough to recover from any losses before retiring.B. acceptable if the firm mandates ... Read Full Answer >>
  4. Why is a "hockey stick bid" considered fraudulent?

    A "hockey stick bid" is a pricing strategy in which a supplier will spike the price of a commodity considerably beyond the ... Read Full Answer >>
  5. How did Peter Young gain infamy as a "rogue trader"?

    Peter Young's notoriety as one of the most memorable rogue traders is not a result of the amount of money he stole, but the ... Read Full Answer >>
  6. What is the salad oil scandal?

    Before Bre-X, there was Allied Crude Vegetable Oil Refining Corporation. In 1962, Anthony "Tino" De Angelis set about to ... Read Full Answer >>
Related Articles
  1. Personal Finance

    Top 8 Ways Companies Cook The Books

    Find out more about the fraudulent accounting methods some companies use to fool investors.
  2. Investing

    The Biggest Stock Scams Of All Time

    Where there is money, there are swindlers. Protect yourself by learning how investors have been betrayed in the past.
  3. Investing Basics

    Playing The Sleuth In A Scandal Stock

    Learn the legwork involved in finding out whether your investment can weather a storm.
  4. Economics

    America's Most Notorious Corporate Criminals

    Learn about the crimes and punishments of some of the most infamous convicted white-collar crooks.
  5. Insurance

    What You Need To Know About Insurance Fraud

    Insurance fraud is as old as commerce. Discover the types of life insurance fraud and how they affect you.
  6. Personal Finance

    4 History-Making Wall Street Crooks

    Find out how these Wall Street high-rollers landed themselves in hot water.
  7. Bonds & Fixed Income

    Tales From Wall Street's Crypt

    Wall Street continues to attract fresh hordes of ghoulish people committing the same old crimes.
  8. Professionals

    Internships: Find The Best One For You

    It only takes a little legwork to land a prestigious career while you're still in college.
  9. Personal Finance

    5 Top Female CEOs

    Becoming Chief Executive Officer for a Fortune 500 company is an extremely prestigious position. Here are some women who have done just that.
  10. Brokers

    How To Avoid Falling Prey To The Next Madoff Scam

    Due diligence does work, but the loose reporting standards for hedge funds make extra care and attention necessary.

You May Also Like

Hot Definitions
  1. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  2. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  3. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  4. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  5. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  6. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
Trading Center