Fraud risks on the rise in South Africa

Employees defrauding their companies is on the rise in South Africa.

That is just one of the growing risks for local and multinational enterprises and this is contained in the findings of a survey done by a global insurance company.

As companies search for growth outside the core mining and natural resources sectors, it brings with them challenging new risks.

In South Africa, insurers are experiencing an increase in claims, as employee fraud escalates.

The top risk exposure for companies includes cyber risks, political and trade credit risks, terrorism, employee fraud, business travel, a lack of electricity supply and worker casualties.

Current political turmoil on the continent continues to drive an increase in business indecision, social unrest and riot risk.

However as multinationals and South African companies continue seeking growth opportunities in Africa, they will continue experiencing new challenges.

Data shows investors are looking for new opportunities in service-based industries, manufacturing, construction and intra-African trade.