The services sector and financial sector were the most likely to report experiencing regulatory or political scrutiny over the past 12 months (23% each)
JOHANNESBURG, South Africa, November 2, 2021/ — Companies Anticipate Investigations into Three Key Areas: Business Conduct and Treatment of Customers, Sustainability/ESG Practices, and Relationship with Public Bodies or Procurement of Government Contracts; 78% Believe Their Business Model Needs to Fundamentally Change to Maintain or Restore Competitiveness; 98% of Companies Are Actively Investing in Preparation for Future Crises, Including Use of Tools Such as AI and Analytics to Mitigate Risk
Download report: https://bit.ly/3GCIGL7
Socio-economic fault lines exposed by COVID-19 are creating an unforgiving marketplace, with companies under scrutiny from governments and the public and little room to avoid disputes and investigations into business practices and behaviour, according to a new report from FTI Consulting, Inc. (NYSE: FCN).
The FTI Consulting 2021 Resilience Barometer report found South African companies under “extreme” pressure to integrate technology (38% v. 41% globally), strengthen reputations (39% v. 37%), improve ESG/sustainability practices (29% v. 34%) and improve corporate culture (26% v. 29%) in the next 12 months. The survey of more than 2,800 executives from large public and private companies across G-20 nations found that 77% of South African organisations (v. 83% globally) either are being, or expect to be investigated in the next 12 months.
The investigation worries are: business conduct and the treatment of customers (21% v. 30%), sustainability and ESG practices (20% v. 30%), and the relationship with public bodies and government contracts (31% v. 30%). The services sector and financial sector were the most likely to report experiencing regulatory or political scrutiny over the past 12 months (23% each).
“At the dawning of the post-pandemic era, facing unprecedented technologic disruptions, rapidly outdating business models and the exposure of socio-economic fault lines — of which there will be far-reaching repercussions — C-suites confront a concoction of risk,” said Petrus Marais (https://bit.ly/3pUR5nb), a Senior Managing Director and Head of South African practice at FTI Consulting in South Africa. “Looming over this mix, exacerbated by rising unemployment, ongoing corruption and financial criminality abetted by cybersecurity threats, is the concern of new vaccine-resistant COVID-19 variants. How companies emerge into the light of day will depend on their resilience — that is, their ability to successfully mitigate the risks and threats through informed insights and solid preparation.”
The Resilience Barometer identifies the nature, severity and potential trajectory of these threats, which are forcing companies to embed resilience on more fronts:
“The ever-changing landscape will put the onus on companies to take a proactive stance regarding investigations,” said Calvin Isaacs (https://bit.ly/3w9x2CH), a Senior Managing Director and Head of Forensic & Litigation Segment at FTI Consulting in South Africa. “Leveraging new technologies and data and analytics can help companies efficiently manage an ongoing investigation and help mitigate the risk of future crises.”
The FTI Consulting 2021 Resilience Barometer survey incorporates the views of 2,869 decision- makers in large companies across all G-20 countries, including 110 in South Africa. Large companies are defined as those with over 250 employees, or over USD$50 million in annual global revenue, or with a balance sheet of over USD$43 million. In July 2021, FTI Consulting conducted a quantitative survey with C-suite and senior managers executives from privately owned and publicly listed companies. In total, participating companies employ 58 million people, with each company employing an average of 20,000 individuals.
Distributed by APO Group on behalf of FTI Consulting.
About FTI Consulting:
FTI Consulting, Inc.