Consulting firm PwC has conducted a survey addressing the impact of crime and fraud on global economies.
The findings of the survey titled, ‘Global Economic Crime and Fraud Survey 2018 South Africa: The dawn of proactivity’ includes a continuation of economic crimes disrupting businesses.
Amongst the survey participants, 49% of global organisations say they have experienced economic crimes in the past two years.
South Africa has witnessed a steep incline in economic crimes.
Seventy seven per cent of organisations in South Africa have experienced economic crimes over the last two years.
The survey found that companies are facing fraud risks from various avenues including internal, external, regulatory and reputational.
Internal fraud risk is led by senior management ahead of other workers within organisations.
Some of the findings of the survey include:
Detection of economic crime takes on a more proactive stance: Organisations are taking back control over the detection of economic crime through increasing their spending in efforts to combat economic crime and fraud.
Regulatory risk driving corporate behaviour, but reputation has become key: 71% of respondents expect recent geopolitical regulatory changes to result in changes to enforcement whilst only 37% have conducted an anti-bribery anti-corruption risk assessment.
True cost of economic crime a cause for great concern: 19% of organisations spend between twice and ten times as much on investigations as the original amount lost to economic crime.
The survey participants included 7,228 respondents from 123 countries, 53% respondents representing multinational organisations, 45% publicly traded companies, 11% government owned and 33% industrial companies etc.
Two hundred and eighty two respondents have their organisations operating in South Africa, 14% in Africa, 17% in western Europe, 9% North America, 14% eastern Europe, 31% Asia Pacific, 3% Middle East and 12% operating in in Latin America.
The survey was conducted between 21 June 2017 and 28 September 2017.
Download the survey whitepaper here…
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