Multinational companies confront a wide range of risk. But an area of risk that may not be fully appreciated by multinationals is cartel behavior. Cartel conduct – that is, reaching an agreement with a competitor to fix prices or allocate customers or markets – can be extraordinarily costly for a company. The risk presented by cartel conduct is somewhat akin to the risk from a natural disaster – they are both hard to predict and can potentially be devastating. Yet unlike natural disasters, the risk is internal to the company.
This article originally appeared in Bloomberg BNA. Reprinted with permission.