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.