Johannesburg, 08 Nov 2013
United States President Barack Obama's 2013 visit to Senegal, South Africa and Tanzania to announce plans to step up trade and investment in Africa is yet another strong indication that the world is starting to recognise certain emerging markets such as Africa are worth investing in over the next decade.
But as foreign investors demonstrate their interest in becoming part of the new African growth story, with double-digit growth expected in certain economies over the next decade, investors will also want to know that their investments are safe, or that measures and systems are available to check the health of the businesses they are investing in - as they do wherever they go in the world.
Companies entering new markets globally know that fraud is a major risk to their operations and financial security, because - it being a new market - they often do not know where to mitigate the risk yet. It is therefore necessary to invest in tools that can assist with a proper fraud health assessment. If potential risks are identified, fraud or corruption can be addressed, or better yet, prevented.
To address this need - both for companies who have been in markets for some time but have never properly addressed their fraud risks, and for others setting up in new territories - professional services firm Deloitte has developed a sophisticated online Fraud Health Check.
Clayton Thomopoulos, director of Forensic Advisory and Solutions at Deloitte in South Africa, says Deloitte has a highly effective Fraud Health Check that focuses on preventative action, thereby significantly reducing the time, effort, costs and potential reputational damage of reacting to incidents of fraud.
The employee questionnaire-based system is predicated on the fact that a government's or company's employees are its first line of defence against fraud. It is employees who are best placed to help identify and report fraud in a company or government - and to help mitigate risk, says Thomopoulos.
"Of course, it is important that the aspects of detection, investigation and resolution receive appropriate consideration, but these matters can be complex and costly, especially when an incident is reported in a remote location. Detection and prevention are much simpler and more cost-effective," says Thomopoulos.
A unique feature of the Deloitte Health Check, which represents the cumulative experience and strength of the Deloitte team over many years, is that it can be customised according to a client's needs.
The Deloitte Fraud Health Check leverages technology to achieve effective and efficient e-mail-based employee questionnaire-based feedback in an anonymous and secure environment. All employees of an organisation, who have e-mail access, will have easy access, thereby providing risk managers and audit committees with an unparalleled level of insight into the fraud health status of the organisation.
Deloitte is, however, also able to provide organisations with expert advice on privacy law and how it applies to the management of fraud data in an organisation.
Director at Deloitte and Head of Deloitte Legal in South Africa, Dean Chivers, an expert on the Protection of Personal Information Act (POPI), believes organisations should know the wider legal risks of fraud: "Undisclosed conflicts can lead to further compliance issues, such as potential breaches of competition law, labour law and regulation in the supply chain space."
Deloitte has a presence in 34 countries in Africa and these firms have been clustered into English, French and Portuguese-speaking areas to better facilitate the service delivery.
Thomopoulos says: "Deloitte is optimistic about the new African growth story and is ideally placed to help clients navigate their way through new markets on the continent. An important part of that navigation is providing the insights that can help companies and governments mitigate risks."
Deloitte Africa CEO Lwazi Bam concludes: "Our approach is simple: we use technology to provide our clients with bespoke solutions focused on delivering innovative measures to improve fraud resistance and deterrence, and our integrated firm allows us to deploy our specialists in every part of the continent where our clients require the service."
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