Global Recovery Rate

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.

BREAKING DOWN '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. Computer Crime Insurance

    An insurance policy that provides protection from crimes committed ...
  2. Securities Fraud

    A type of serious white-collar crime in which a person or company, ...
  3. Business Crime Insurance

    An insurance policy that companies purchase to ensure protection ...
  4. White-Collar Crime

    A non-violent crime that is committed by someone, typically for ...
  5. Corporate Fraud

    Activities undertaken by an individual or company that are done ...
  6. Major Fraud Act Of 1988

    A piece of legislation passed during the Reagan administration ...
Related Articles
  1. Trading

    Detecting Financial Statement Fraud

    Find out how to tell if a company is manipulating its financial data, so you don't invest in the next Enron.
  2. Markets

    A Cost-Benefit Analysis of Mass Incarceration

    The Council of Economic Advisers' latest report offers a fresh perspective on mass incarceration: weighing the costs and benefits to society, it shows how economically ineffective the policy ...
  3. Investing

    Detecting Financial Statement Fraud

    Fraudulent financial statements account for about 10% of the white-collar crime incidents reported each year.
  4. Personal Finance

    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.
  5. Personal Finance

    Mortgage Fraud: Understanding and Avoiding It

    There are many different ways to be victimized through home ownership - learn how to identify and avoid these crimes.
  6. Managing Wealth

    Creating a Risk Management Plan for Your Small Business

    Learn how a complete risk management plan can minimize or eliminate your financial exposure through insurance and prevention solutions.
  7. Retirement

    The Best and Worst States for Retirees in 2016

    Retirees have limited income, and important health care needs, so they need to know the states that provide the best financial and health environments.
  8. Investing

    4 Massive Frauds You've Probably Never Heard Of

    Here are four historically significant, obscure, large-scale frauds from the previous two centuries.
  9. Financial Advisor

    How To Protect Your Small Business From Fraud

    Small business owners are at risk of being scammed. Here's what you need to know to avoid that.
  10. Markets

    Debit Card Fraud: Is Your Money At Risk?

    As criminals are becoming more savvy, your money is becoming more vulnerable.
RELATED FAQS
  1. What were the primary financial crimes involved in the ZZZZ Best case?

    Learn about the primary financial crimes involved in the ZZZZ Best case, one of the most notorious episodes of accounting ... Read Answer >>
  2. How do insurance companies use a whistleblower?

    Read about the practice of whistleblowing to help insurance companies detect and prevent fraudulent insurance claims or recoup ... Read Answer >>
  3. Why does fighting money laundering reduce overall crime?

    Fighting money laundering reduces overall crime by helping identify perpetrators, restoring stolen money to victims and disrupting ... Read Answer >>
  4. What effect has globalization had on international investments?

    Learn how globalization impacts international investment and transforms economies around the world. Understand the implications ... Read Answer >>
  5. Am I responsible for fraudulent charges on my credit card?

    In the event that your credit card is stolen in the United States, federal law limits the liability of card holders to $5 ... Read Answer >>
  6. What proportion of the global economy is comprised of banks?

    Read about the size and scope of the global banking sector, its importance and why it should continue to form a sizable portion ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center