Employees committing fraud is a growing risk concern in South Africa and there has been a huge increase in insurance claims related to fidelity crimes.
This is one of the findings of a survey done by the global insurance company Chubb. There were 481 respondents from key industry sectors in 24 African countries.
In the overall survey, fidelity fraud or crime was identified by risk managers as the 6th greatest exposure to risk for multinationals operating on the continent.
Cyber risk came out as as the top concern and a “real and present danger” for multinationals doing business in Africa.
“Several respondents felt the cost of cyber insurance cover was prohibitively expensive,” states the survey report.
“However, a marked and recent uptick in ransomware attacks has spurred interest (in comprehensive insurance).”
Another key risk identified in the survey was political and trade credit risk.
According to the survey, current political turmoil continues to drive an increase in business indecision, social unrest and riot risk.
“As businesses continue to expand across borders, they are faced with a number of geopolitical threats such as expropriation, discrimination, political violence,…
