Posted in Finance, Accounting and Economics Terms, Total Reads: 508
Definition: Global Recovery Rate
The Global Recovery Rate (or the GRR) indicates a fraction of all the corporates and businesses that have successfully been able to recover over atleast 60% of their losses that were incurred due to corporate fraud. This rate is measured across the world.
As per the reports from the PWC 2005 Global Economic Survey, it was discovered that 45% of the more than 3500 companies surveyed across the world, had experienced financial / economic crime from 2003 to 2005. For that phase, the GRR was a mere 27% which means barely 27% of the 3500+ companies were able to recover in excess of 60% of their losses. In fact, these losses can be substantial to the tune of $1.7 million.
There are ways to increase the probability of recovering these and thereby, improve the Global Recovery Rate. One of them would be by purchasing ECI – Economic Crime Insurance.