Page 48 - Risk Report 2024

IRMSA
48 RISK REPORT 2024/25
Scenario:

What it can look like if it happens now

The Construction Mafia takes over important construction sites in a province and halts all activity until their
demands are met, backed by radical populist groups (with intimidation tactics, asset destruction, and loss of
life). The SAPS are unable to deal with the challenge and the SANDF is deployed.

Immediate resilience/emergency

preparedness: Medium impact in the

short term

Governance and Ethical Culture ERM implementation
compliance frameworks Foster a strong ethical culture Implement ERM processes to

Establish a robust governance and from the top-down, promoting identify, assess, and mitigate fraud
compliance framework, with clear integrity, transparency, and zero- and corruption risks.
policies, codes of conduct, and tolerance for misconduct.
accountability measures.

Collaboration Due diligence Whistle-blowing
Collaborate with industry Conduct comprehensive due Implement whistleblower hotlines
associations, law enforcement diligence on third parties and protection mechanisms to
agencies, and Government bodies (suppliers, vendors, partners) to encourage reporting of suspicious
to share intelligence and best assess risks and potential red activities.
practices. flags.

Analytics and monitoring Employee training Incident response
Deploy data analytics and Regularly train/refresh Develop incident response and
monitoring tools to detect employees on ethical conduct, investigation protocols to swiftly
anomalies, red flags, and patterns anti-corruption measures, and address and remediate any
indicative of fraud or illicit on identifying and reporting identified issues.
activities. suspicious activities.

Segregation and internal Access control Audits
controls Enforce strict access controls, both Conduct periodic audits
Segregate duties and implement physical and logical, to sensitive (internal and external) to review
robust internal controls areas, information systems, and compliance with policies,
over financial transactions, data repositories. procedures, and regulatory
procurement processes, and asset requirements.
management.

Physical Security Law enforcement Record keeping
Deploy physical security measures Collaborate with law enforcement Maintain detailed documentation
(CCTV, access controls, security agencies to report and investigate and evidence trails to support
personnel) to safeguard facilities incidents of fraud, corruption, or investigations and potential legal
and assets. other illicit activities. proceedings.

Review and update Accountability
Consistently review and update plans based on Hold people who have been found to have
evolving risks, incidents, and best practices. contravened policies, procedures and codes of
conduct accountable.