The PWC Global Economic Crime Survey 2024 provided some important insights into the world of economic crime, pointing out that in today’s global, interconnected environment mitigating risk intelligently is a growing challenge.
Some notable findings of companies surveyed indicated:
- 42% don’t have a third-party risk management programme or don’t have any risk scoring built into their programme.
- 59% stated that export controls are now more complex, with half indicating that their controls are enforced more robustly than before.
Procurement or supply chain management is a key area under scrutiny as advanced technology fuels sophisticated efforts to perpetrate procurement fraud. Here, the efforts by companies to mitigate risk is encouraging with 59% of companies surveyed having completed an enterprise-wide fraud risk assessment in the last 12 months, and a further 12% planning to do so soon, and 72% reported that the board is regularly updated on allegations of fraud being investigated, and efforts to mitigate fraud. However, about 20% of companies do not use data analytics at all to prevent procurement fraud.
“Given the prevalence of money laundering, corruption and economic fraud today, increased oversight and awareness by a board of directors is not only sensible but needed. The board needs to encourage the break down of any silos which might interfere with compliance and risk management, insist on detailed briefings, and support collaboration between linked parties to improve effectiveness”, says Mubesko Africa’s Nico de Kock.
Nico de Kock
MD MUBESKO AFRICA
nico@mubesko.co.za
mubesko.co.za
MUBESKO AFRICA is a well-established finance management and management solutions provider, forensic investigation, and asset accounting consulting firm with a successful track record in the public and private sectors. Contact MUBESKO for an audit to ensure that you can satisfy your board of directors on fraud risk mitigation effectiveness.