Which of the following is an example of a corruption risk?

The scenario described as the receipt of kickbacks exemplifies a corruption risk because it involves a situation where an individual may exploit their position of authority to receive undisclosed benefits in exchange for preferential treatment or influence. This type of behavior breaches ethical norms and can severely undermine the integrity of an organization, leading to various forms of fraud.

Kickbacks are often seen in procurement processes where a vendor might offer rewards to employees in return for awarding contracts, thus compromising the fairness and transparency of business operations. This creates a conflict of interest and can result in financial losses or reputational damage for the organization.

In contrast, neglecting internal controls, underreporting revenues, and overseeing employee performance can involve other types of fraud or lapses in compliance but do not specifically illustrate the element of corruption linked to bribery or unethical concessions that characterize corruption risks. These actions may relate more closely to control weaknesses or performance issues rather than the direct exchange of favors that defines corruption.