2. Cockroach theory means that when a single cockroach is seenit means more are behind the veil i.e behind the cupboard, wall etc. Similarily moment a fraud or a bad news related to company which is attributable to company actions should provide a clue to the client to reduce the exposure in the company as bad news begets bad news. Thus one can be on the look out for the negative actions which can be attributed to wrong actions and policies of the companies and this assumption stems from Satyam Fraud which has brought disgrace to a nation.
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