1. Deloitte footprint into Africa
Growth of sub-Saharan Africa is projected at 5.3% in
2012. It is anticipated to pick up to 5.6% in 20131.
Deloitte footprint in Africa
NIGER
CAMEROON
GABON
DEMOCRATIC
REPUBLIC OF
CONGO
KENYA
UGANDA
SEYCHELLES
RWANDA
CABINDA
TANZANIA
BOTSWANA
BOTSWANA
GUINEA-BISSAU
GUINEA
MAURITIUS
SIERRA LEONE
REUNION
IVORY
COAST
GHANA
LESOTHO
SOUTH
AFRICA
GABON
COUNTRIES NOT SERVICED
ETHIOPIA
SOUTH
SUDAN
DEMOCRATIC
REPUBLIC OF
CONGO
SOMALIA
KENYA
UGANDA
RWANDA
BURUNDI
LESOTHO
SOUTH
AFRICA
CENTRAL
AFRICAN
REPUBLIC
CAMEROON
EQUATORIAL GUINEA
DELOITTE OFFICES
COUNTRIES SERVICED
• Foreign Direct Investment in Africa of US$42.7 billion in 2011 could more than double by 2014.
• Trade with other emerging markets has significantly increased:
• India’s trade with Africa has doubled in the past four years, from US$24.98 billion in 2006–07
to US$52.81 billion in 2010–11.
• Brazil has intensified its efforts to forge closer relationships with Africa with its investments
banks raising US$1 billion to create the world’s biggest investment fund for Africa, focusing
on areas such as infrastructure, energy and agriculture.
• The volume of Chinese concessional loans to Africa is estimated to have grown from a cumulative
total of US$800 million in 2005 to a commitment of US$10 billion between 2009 and 2012.
DJIBOUTI
NIGERIA
LIBERIA
SWAZILAND
0-1
1. World Bank
MO
SWAZILAND
10 - 20
1 - 10
ZIMBABWE
NAMIBIA
ERITREA
CHAD
BURKINA
FASO
CABINDA
TANZANIA
Projected Real GDP Growth
for 2012 (%)
ANGOLA
7 and above
ZAMBIA
UE
IQ
5-7
ZIMBABWE
NAMIBIA
3-5
BOTSWANA
SWAZILAND
1-3
Negative - 1
No data available
LESOTHO
SOUTH
AFRICA
MB
ZA
MO
R
20 - 50
MB
ZA
MO
NIGER
SUDAN
GAMBIA
MAD
AGAS
CA
ZIMBABWE
NAMIBIA
I
MB
ZA
MALI
SENEGAL
MALAWI
50 - 200
EGYPT
C
BRA ONG
ZAV O
ILLE
IQ
UE
MAURITANIA
E
QU
MAD
AG
ZAMBIA
ZAMBIA
CAR
ANGOLA
COMORES
MALAWI
TANZANIA
ANGOLA
Partner
Email: rohanlon@deloitte.com
Direct: +968 2481 7775
LIBYA
SA
RWANDA
BURUNDI
Projected Protection
for 2012 (millions)
ALGERIA
RA
KENYA
UGANDA
HA
DEMOCRATIC
REPUBLIC OF
CONGO
CABINDA
Rob O’Hanlon
MOROCCO
BURUNDI
MAD
AGAS
Partner
Email: apenanguer@deloitte.fr
Direct: +33 (1) 55 61 27 47
SOMALIA
MALAWI
Alain Penanguer
North Africa
ETHIOPIA
SOUTH
SUDAN
RN
EQUATORIAL GUINEA
GABON
Francophone Countries
CENTRAL
AFRICAN
REPUBLIC
TE
LIBERIA
GHANA
NIGERIA
SOUTH
SUDAN
ES
IVORY
COAST
CAMEROON
EQUATORIAL GUINEA
DJIBOUTI
ETHIOPIA
W
GUINEA
SIERRA LEONE
SOMALIA
CENTRAL
AFRICAN
REPUBLIC
R
GUINEA-BISSAU
ERITREA
CHAD
BURKINA
FASO
DJIBOUTI
NIGERIA
ASCA
SENEGAL
GHANA
LIBERIA
SUDAN
GAMBIA
C
BRA ONG
ZAV O
ILLE
CEO Deloitte East Africa
Email: sonyango@deloitte.com
Direct: +254 2042 30000
CAPE
VERDE
ISLANDS
SIERRA LEONE
MALI
TOGO
BENIN
CEO Deloitte West Africa
Email: aobe@deloitte.com
Direct: +234 (1) 2717810
MAURITANIA
IVORY
COAST
C
BRA ONG
ZAV O
ILLE
RN
BURKINA
FASO
TE
ES
Sammy Onyango
ERITREA
CHAD
GUINEA
W
Adeniyi A Obe
EGYPT
NIGER
SENEGAL
GUINEA-BISSAU
SA
HA
EGYPT
LIBYA
SUDAN
GAMBIA
LIBYA
MALI
TOGO
BENIN
ALGERIA
RA
East Africa
A
MAURITANIA
CAPE
VERDE
ISLANDS
MOROCCO
West Africa
ALGERIA
HA
R
CEO Deloitte Southern Africa
E mail: lbam@deloitte.co.za
Direct: +27 (0)11 209 8807
SA
Head of Africa Desk
E mail: angounden@deloitte.co.za
Direct: +27 (0)11 806 6169
ER
N
Lwazi Bam
MOROCCO
W
ES
T
Anushuya Gounden
• Africa is the world’s second-largest and second most-populous continent after Asia.
• Africa has nearly a billion people with over 1000 languages spoken over 54 countries.
• Africa has the youngest population of any continent in the world, with 41% of the population
under the age of 15.
• The image below gives an indication of the 2012 projected population numbers per country:
TUNISIA
Southern Africa:
TUNISIA
Contacts
TUNISIA
Fast Facts
TOGO
BENIN
Contacts
• In 2012, 40 % of the continent’s one billion people live in cities - a proportion roughly
comparable to China’s and larger than India’s. By 2030, this share is projected to rise to 50 %,
and Africa’s top 18 cities will have a combined annual spending power of $1.3 trillion.
• Africa’s long-term growth will increasingly reflect interrelated social and demographic changes
creating new domestic engines of growth. Key among these will be urbanization, an expanding
labor force, and the rise of the African middle-class consumer.
• In 2012 oil exporting African countries benefited the most from higher prices, with improved
terms of trade contributing to an equivalent of 8.5 percent to GDP.
• It takes 18 days average time to clear customs on direct exports in Democratic Republic of
Congo and 2.6 days in Niger; conversely for imports it takes 45.4 days in Democratic Republic of
Congo and 3.7 days in Botswana.
• Road density is lower in Africa than other developing regions: 152km of roads per 1 000 square
km of land area, and only one third of it is paved.
• Deep-sea ports are currently connected to remote internal regions by 10 000 km of road,
but between 60 000 and 100 000 km of road are required to achieve an intra-regional trunk
network.
• The African countries with the highest projected GDP growth rates for 2012 include Libya, Sierra
Leone, Niger, Angola, Ghana, Liberia and Cote d’Ivoire. The diagram below indicates the 2012
projected growth rates for all African countries:
Amongst fast-growing
economies in 2011 were
resource-rich countries
such as Ghana,
Mozambique, and
Nigeria, as well as
non-resource-rich
economies, Rwanda and
Ethiopia, all exceeding
growth rates of at least
7% in 2011.
The Deloitte Africa Desk
Although the statistics from various sources differ slightly according to variables,
there is a clear message that the projected growth rate for Africa is higher
than that of developed regions and on a par with, or even higher than many
developing nations. Hence, business leaders globally accept that investment in
Africa has become a key driver for increasing shareholder value.
As explained overleaf, the Africa Risk Map
is a proven tool to help executives identify
and mitigate the risks and challenges
that go hand in hand with investment on
the continent. For practical application,
there is no “one size fits all approach”, so
the Deloitte Africa Desk provides a focal
point for facilitating an informed and
pragmatic solution that meets clients’
unique strategies for success. The Desk
mobilises the appropriate service line
expertise, business intelligence, industry
experts and experienced country partners
with the local knowledge and cultural
understanding that is so critical to success.
Into Africa.
A number of our clients acknowledge
that the support provided by the Deloitte
Africa Desk, coupled with the fact that
we stay close to them throughout the
investment and implementation phases,
have played a key role in enabling them
to grow their business in Africa.
Source : IMF Data Mapper
Unmasking potential
2. Africa Risk Map
Strategy Strategy & Planning
& Planning
The Africa Risk Map
Experience has shown that risk and reward are inter-related and
businesses cannot maximise reward (Shareholder Value) without
taking a calculated risk. The art and science of calculating risk is the
challenge faced by executives on a daily basis. An in-depth, informed
risk analysis is critical to achieve shareholder value.
The African continent is perceived to be world’s greatest opportunity
for corporate expansion. However, lack of proper risk analysis
has meant many organisations have been unable to maximise
shareholder value and have either under-achieved or failed in their
African expansion endeavours.
The Africa Risk Map provides a unique view on the pervasive and
interconnected nature of risk, giving executives a useful tool to
identify the specific risks pertaining to their organisation when
operating in Africa.
At Deloitte, we help you focus on the areas that matter most,
identifying the most practical ways of getting things done and
ensuring that initiatives deliver on their intended business value.
The Africa Risk Map makes this process simpler by accelerating the
identification of key risk areas and mitigation techniques, in order to
contribute to greater shareholder value.
Overall, the Africa Risk Map helps you focus on the right things and
serves as a graphic reminder of what you are doing and why. Don’t
risk growing your business in Africa without customising the Map,
based on risks that impact your specific organisation. Areas could
include regulatory, geographic industry and company-specific issues.
For information on customising the Africa Risk Map to meet the
needs of your organisation, please contact Deloitte.
Governance
Governance
Operations/Infrastructure
Operations/Infrastructure
Reporting
Reporting
External Factors External Factors
Geopolitical
Geopolitical
Credit Rating
Planning
Credit Rating
Planning
Scenario PlanningScenario Planning
Strategy
Business Model Business Model
Corporate Responsibility
Corporate Responsibility
& Sustainability & Sustainability
Strategy
Alliances
Alliances
Project Financing Project Financing
Community
Investment
Ethics
Community
Investment
Ethics
Corporate Governance
Corporate Governance
Ethical Culture/Tone
Ethical Culture/Tone
at the top
at the top
Reputation/
Stakeholder
Relations
Reputation/
Stakeholder
Relations
Compliance
Culture
Culture
Regulatory Reporting
Political instability (local,
Political instability (local,
Failure
Inability to contextualise
Inability to contextualise Failure to “localise” Failure to “localise”
Lack of support for community
Lack of support for community
Inability to access capital
Inability to access capital Failure to consider scenario to consider scenarioInadequate
Financing projects in Financing projects in
Failure to foster an Failure to foster an
Inadequate
Inappropriate partners
Inappropriate partners
state, country)
state, country)
planning in long-termplanning in long-term planning
planning
stakeholder relations stakeholder relations in a corporate culture
in a
development initiatives
development initiatives
countries with humancountries with human rights
rights
corporate culture
ethical culture
ethical culture
environmental scan environmental scan
Inappropriate reliance on credit
Inappropriate reliance on process
credit
process
local context
local context
Inadequate structured
Inadequate structured
violations and economic
violations and economic
Cultural disconnect Cultural disconnect
Poor community welfare initiatives
Poor community welfare initiatives
ratings for business decisions business decisions
ratings for
Failure to create a sound
Failure to create a sound
Inappropriate
Inappropriate
Inappropriate product/
Inappropriate product/ contractual arrangements
contractual arrangements
sanctions
sanctions
Failure to consider key
Failure to consider key
Inability to understand and to understand and culture where compliance- where complianceInability
culture
Corruption risks (including
Corruption risks (including
performance incentives
performance incentives
pricing mix
pricing mix
Ineffective decisions Ineffective decisions and programs
and programs
Inappropriate management of
Inappropriate management of
variables in scenario variables in scenario analysis
analysis
meet shareholder meet shareholder
Financing projects with
Financing projects with
related matters and issues matters and issues
related
foreign corrupt practice
foreign corrupt practice
to send
to
to send functions overseas tofunctions overseasFailure to monitor and
credit ratings
credit ratings
Failure to monitor and expectations
Inconsistent with local
Inconsistent with local
expectations
harmful environmental
harmful environmental
are treated with rigor are treated with rigor and
and
violations)
violations)
Inadequate responses to
Inadequate responses to culture/norms
cheaper markets
cheaper markets
impacts
control unauthorised control unauthorised
impacts
culture/norms
objectivity
objectivity
Lack of data integrity Lack of data integrity in financial
in financial
scenarios
scenarios
Failure to understandFailure to understand
Excessive trade embargoes
Excessive trade embargoes
activities
activities
Ineffective reporting of community
Ineffective reporting of community
systems
systems
Failure to screen general
Failure to screen general
trends related to the trends related to the
Failure to provide personnel to provide personnel
Failure
Management relying Management relying on
on
investment initiatives investment initiatives
Expropriation by
Expropriation by
Failure to protect
Failure to protect
financing projects financing projects
organisation’s workforce,
organisation’s workforce, with the tools and resources tools and resources
with the
Inappropriate data management data management
Inappropriate
potentially inaccuratepotentially inaccurate data to
data to
governments
governments
whistleblowers
whistleblowers
creditors, customers,creditors, customers, and needed to attain ongoing
and
Failure to maintain services along
needed to attain ongoing
Failure to maintain services along
of debt payments and maturity
of debt payments and maturity
facilitate scenario planning scenario planning
facilitate
Outsourcing
Customers
Outsourcing
Customers
other stakeholders other stakeholders
rural and
compliance
compliance
rural and underserved routes underserved routes
schedules
Suspension of country
Suspension of country schedules
concessions
concessions
Real or perceived influence perceived influence
Real or
Misaligned compliance
Misaligned compliance
of majority shareholders
of majority shareholders culture to corporate Strategyto corporate Strategy
Communications Communications
culture
Lack of cross-border Lack of cross-border
Inappropriate
Inappropriate
Energy Management
Energy Management
Failure of outsourcing
Failure of outsourcing
agreements
agreements
Failure to adequatelyFailure to adequately
&
segmentation
segmentation Natural Resource Natural Resource &
Failure to enforce Failure to enforce
Capital Planning Capital Planning
& Alternative
& Alternative
agency to meet requirementsto meet requirements
agency
consider and/or respond to and/or respond tocompliance programs and
consider
compliance programs and
Utilisation
Utilisation
Lack of free market Lack of free market
Ineffective marketing Ineffective marketing
Sourcing
Sourcing
shareholder proposals or
shareholder proposals or apply disciplinary measures
apply disciplinary measures
Failure to establish Failure to establish
Failure to perform legal
Failure to perform legal
mechanisms
mechanisms
message
message
stakeholders
stakeholders
ongoing ethics and ongoing ethics and
Inability to access capital
Inability to access capital review of outsourcingreview of outsourcing
Inadequate
Inadequate energy conservation energy conservation
Inadequate ongoing Inadequate ongoing
Commodity risk and natural
Lack of adequate
Lack of adequate
Commodity risk and natural
compliance
compliance
Inability to attract and
Inability to attract and
contract
contract
Poor corporate brandPoor corporate brand
compliance communications
compliance communications
resource security
infrastructure
infrastructure
Inadequate capital structure
Inadequate capital structure
communications (internal
communications (internal
Inability to utilise alternate sources
Inability to utilise alternate sources
retain customers
retain customers resource security
perception
perception
Sole source dependence on
Sole source dependence on
and debt/equity funding debt/equity funding
and
and external)
and external)
of energy
of
Failure to identify and train to identify and train
Failure
Inability
Inability to mitigate natural to mitigate natural energy
outsourced core functions
outsourced core functions
Unexpected adverse Unexpected adverse
specific businesses affected businesses affected
specific
resource dependency Noncompliance with applicable
resource dependency
Capital allocation riskCapital allocation risk
Failure to provide a Failure to provide a
Noncompliance with applicable
changes in customer changes in customer
by new laws, regulations,
by new laws, regulations,
Loss of core competencies core competencies
Loss of
Transparency & Transparency &
means
means for employees to
on energy
demand/preferences demand/preferences
Inability to comply with laws and regulations laws and regulations on energy for employees to
Inability to comply with
Investment risk
Investment risk
Customer &
Customer &
and policies
and policies
raise ethics and
raise ethics and Financial Integrity Financial Integrity
utilisation/conservation
utilisation/conservation
Failure to protect data
Failure to protect data
local regulations
local regulations
Inadequate monitoring of
Inadequate monitoring of
Laws & Regulations
Economic Conditions/Laws & Regulations
Economic Conditions/
compliance issues compliance issues
Poor internal organisation internal organisation and
Poor and
entering and leaving entering and leaving the
the
Board Effectiveness/
Board Effectiveness/
customer usage
customer usage Inadequate systems and
Inadequate systems and
Industry Trends Industry Trends
process chain
process chain
organisation through organisation through
Failure to provide an Failure to provide an Cursory reviews of financial reviews of financial Knowledge
Knowledge
Cursory
processes for utilisation
processes for utilisation
outsourced functions outsourced functions
anonymous reportinganonymous reporting line
line
Failure to align the business to align the business
Failure
Management
Management
statements and related
statements and related
and
and reporting of natural reporting of natural
Laws inhibiting foreign
Macroeconomic changes
Macroeconomic changesLaws inhibiting foreign
strategy with capital planning with capital planning
strategy
Unintended data
Unintended data
disclosures
disclosures
resources
resources
ownership
ownership
Failure to engage Failure to engage
Failure to understandFailure to understand and
and
Demographic changes
Demographic changes
mismanagement andmismanagement and or
or
employees and keep employees and keep Failure to challenge Failure to challenge
exercise fiduciary duties
exercise fiduciary duties
Non-compliance withNon-compliance with country
country
leakage resulting in loss of resulting in loss of
leakage
ethics and compliance
ethics and compliancemanagement assumptions
Monetary & fiscal policy
Monetary & fiscal policy
management assumptions
and jurisdiction-specific laws
and jurisdiction-specific laws
goodwill
goodwill
Ineffective/insufficient
Ineffective/insufficient
top of mind
top of mind
Water Reduction &
Water Reduction &
and regulations
Hyper-inflation/deflation
Hyper-inflation/deflation and regulations
Sustainable Water
Sustainable Water
Inadequate oversightInadequate oversight of
of
independent committees
independent committees
Lack of or inconsistent
Lack of or inconsistent
Closed Loop
Closed Loop
Operational Planning
Operational Planning
Quality
Quality
internal and external internal and external auditors
auditors
Adverse legal/regulatory
Adverse legal/regulatory
connectivity
connectivity
Business cyclicality Business cyclicality
Production
Production
Disconnect between Disconnect between local &
local &
Addressing
Addressing
changes (multi-jurisdictional) (multi-jurisdictional)
changes
Inadequate or unqualified
Inadequate or unqualified home board
home board
Changes to industry Changes to industry
Allegations
Allegations
Inappropriate deployment of
Inappropriate deployment of
Discharges and runoff
finance organisation finance organisation
Failure to reduce waste
Discharges and runoff
Failure to reduce waste
Inappropriate lobbying
Inappropriate lobbying
structure
structure
Inadequate knowledge of
Inadequate knowledge of
resources
resources
affecting
affecting availability of water availability of water
Lack of financial expertise of financial expertise on
Lack on
Improper waste treatment/reuse/
Improper waste treatment/reuse/
board responsibilitiesboard responsibilities
Lack of current economic of current economic
Lack
Policy
Technology
Policy
Technology
resources
resources
Lack of defined protocols of defined protocols
Lack
Inadequate departmental
Inadequate departmental
the audit committee the audit committee
disposal practices disposal practices
data
data
to address allegations address allegations
to
Inadequate understanding of
Inadequate understanding of
representation in plan
representation in plan
Excessive usage of water
Excessive usage of water
Inability to
Inability to adopt a sustainable adopt a sustainable
the organisation’s business
the organisation’s business
development
development
Failure to document Failure to document
Failure to comply with
manufacturing process
Failure to comply with
manufacturing process
Policies conflict with Policies conflict with Inability to implementInability to implement
inquiries and allegations,
inquiries and allegations,
Limited exposure to Limited exposure to
Established plans are
Established plans are
applicable regulations on
applicable regulations on
business operations business operations Technology
Technology
including outcomes and/or
including outcomes Compensation/ Compensation/
and/or
Noncompliance with applicable
Noncompliance with applicable
management outsidemanagement outside of the
of the
unachievable
unachievable
Third Party/Joint Third Party/Joint
water
water
actions taken
actions taken
waste management laws and
waste management laws and
CEO and CFO
CEO and CFO
Inadequate communication
Inadequate communication to consider and
Performance
Performance
Failure
Failure to consider and
Competition
Competition
Venture
Venture
Lack
regulations
Lack of available water of available water regulations
of policies
of policies
protect all technical protect all technical
Incentives/Alignment
Incentives/Alignment
Lack of a defined
Lack of a defined
Lack of board cohesiveness board cohesiveness
Lack of
Requirements
Requirements
environments
environments
procedure during crisis
procedure during crisis
Ineffective enforcement of
Ineffective enforcement of
Misalignment of performance
Misalignment of performance
Information
Information
Business Continuity
Business Continuity
Inadequate competitive
Inadequate competitive
policies
policies
Inadequate structures to
Inadequate structures to
Lack of or restricted Lack of or restricted
Loss of sensitive
Loss of sensitive
metrics with long-term
metrics with long-term
analysis
analysis
management & management &
Management (BCM)
Management (BCM)
facilitate identification of JV identification of JV
facilitate
access to technologyaccess to technology
information through information through strategy
strategy
Sustainability
Sustainability
partners
partners
reporting
reporting
inappropriate handling
inappropriate handling
Climate Change Climate Change
Prevention of anti- Prevention of antiStrategy
Strategy
Executive compensation
Executive compensation
competitive practicescompetitive practices
Contract risk
Contract risk
Failure to establish effective to establish effective
Failure
Failure to identify and
Failure to identify andinconsistent with stakeholder
Inadequate business Inadequate business impact
impact
inconsistent with stakeholder
rd
rd
executive dashboard executive dashboard views of
views of
assess ethics and assess ethics and
Fragmented markets Fragmented markets
analysis
analysis
Inability
expectations
expectations
Inability to control and reduceto control and reduce
Inability to audit 3 parties to audit 3 parties
Inability
Business
Business
Failure to demonstrate
compliance issues compliance issues
Mergers/AcquisitionsFailure to demonstrate
Mergers/Acquisitions
compliance-related risks
compliance-related risks
emissions
corporate responsibility emissions
corporate responsibility
Concentration
Inability to build alternate
Inability to build alternate Concentration
Undue
Lack of project funding
Lack of project funding
and related actions and related actions Undue emphasis on short- emphasis on shortLack of data integrity Lack of data integrity of
of
infrastructure/capabilities to handle
infrastructure/capabilities to handle
Inappropriate monitoring of
term results
term results
Inappropriate monitoring of
CR&S priorities not CR&S priorities not
information relied upon for
information relied upon for
emergencies
emergencies
greenhouse gas emissions
greenhouse gas emissions
adequately engrained
Inability to identify a clear
Inability to identify aadequately engrained
clear
Dependency on facilities
Dependency on facilities
Misalignment of incentives
Misalignment of incentives ongoing compliance ongoing compliance
within overall business
end-state vision for the
end-state vision for within overall business
the
not owned by the
not owned by the
Ineffective BCM communication,
Ineffective BCM communication,
Noncompliance with applicable
and rewards
Noncompliance with applicable
Corrective Action &
Corrective Action & and rewards
management
management
strategy
strategy
integration
integration
organisation
organisation
training, and/or testing strategy
training, and/or testing strategy
laws and regulations laws and regulations on
on
Discipline
Discipline
Failure to identify and report to identify and report
Failure
Markets
External Fraud External Fraud
Markets
greenhouse gas emissions/
greenhouse gas emissions/
Lack
Lack of
Insufficient accounting, tax,
Insufficient accounting, tax, cooperation with of cooperation with
Supplier over-dependency
Supplier over-dependency
key compliance-related compliance-related
key
pollution control
industry-wide initiatives pollution control
industry-wide initiatives
regulatory, and operational
regulatory, and operational
trends
trends
Failure to discipline Failure to discipline
Customer overCustomer overtarget screening
target screening
Board Structure &Board Structure &
Failure to
Failure to adopt and upgrade adopt and upgrade
employees for non- employees for nondependency
dependency
Commodity price riskCommodity price risk
Tender irregularities Tender irregularities
Inadequate reporting Inadequate reporting of
of
pollution
pollution control technologies control technologies
Leadership
Leadership
compliance
compliance
Incomplete due-diligence
Incomplete due-diligence
material compliance issues tocompliance issues to
material
Foreign exchange rate risk exchange rate risk
Foreign
Vendor & business partner & business partner
Vendor
Inability
Inability to generate tradable to generate tradable
appropriate external appropriate external
Inconsistent treatment of
Inconsistent treatment of
Failure to achieve synergies to achieve synergies
Failure
fraud
fraud
Inability to attract or identify stakeholders
local
carbon credits
carbon credits
Interest rate risk
Interest rate risk
stakeholders
employees for non- employees for non- Inability to attract or identify local
from post merger integration merger integration
from post
board members
board members
Customer fraud
Customer fraud
compliance
compliance
Ineffective carbon reduction
Ineffective carbon reduction
Financial market risk Financial market risk
Board conflicts of interest orconflicts of interest or lack
Board lack
programs
Risk Assessment Risk Assessment &
&
programs
Ineffective anti-fraud Ineffective anti-fraud
Failure to implement Failure to implement changes
changes
of independence
of independence
programs
programs
Controls
Controls
to correct systemic program systemic program
to correct
Innovation
Data breach and external breach and external
Data
political fraud
political fraud
Hazards/
Hazards/
Catastrophic LossCatastrophic Loss
Man-made hazards/terrorism hazards/terrorism
Man-made
Natural disasters
Natural disasters
Health epidemics (SARS, epidemics (SARS,
Health
influenza, etc.)
influenza, etc.)
Innovation
Pricing
Pricing
Biodiversity
Biodiversity
Fair Trade
Certification
Fair Trade
Certification
issues
issues
Weak structure/composition of
Weak structure/composition of
the board
the board
Inability to identify significant to identify significant
Inability
compliance risks
Ineffective communication
Ineffective communication compliance risks
between and amongst the board amongst the board to establish controls to establish controls to
between and
Failure
Failure to
and management and management
mitigate identified risks
mitigate identified risks
Inappropriate pricing Inappropriate pricing of
of
Inability to sustain and/or
Inability to sustain and/or
Policies &
Policies &
Failure
improve market share due market share products/services products/services Failure to minimise invasive to minimise invasive
improve
due
Failure
Failure to adopt fair-trade to adopt fair-trade Procedures
Procedures
transportation of species business practices business practices
to new
transportation of species to new
to lack of innovation to lack of innovation
Lack of appropriate tone set by
Lack of appropriate tone setInability to communicate risksto communicate risks
by
Lack of flexibility in pricing of flexibility in ecosystems
Lack
pricing
ecosystems
Inability
leadership
leadership
mechanism
mechanism
Failure to generate new
Failure to generate new
Inability to
Inability to get products certifiedget products certified
across lines of business
across lines of business
Inadequate ethics and
Failure to
Failure to establish protective establish protective the Fair Trade Certified Fair Trade CertifiedInadequate ethics and
products or services products or services
with the
with
compliance policies compliance policies Inappropriate decision-making
Inappropriate decision-making
Failure to comply with
Failure to comply with
areas for biodiversity areas for biodiversity conservation
conservation
Failure to establish monitoring establish monitoring
Failure to
mark
mark
and delegation of authorities
and delegation of authorities
preferred pricing
preferred pricing
Failure to embed
Failure to embed
and testing programsand testing programs
Failure to continuously monitor continuously monitor
Failure to
Failure to improve natural resource generate businessto generate business
Failure to improve natural resource
innovation across theinnovation across the
Inability
Inability to
policies & procedures
policies & procedures
Failure to comply with
Failure to comply with
management in the production
management in the production
Inability to sustain control
Inability to sustain control
organisation
organisation
and reputation through fair trade
and reputation through fair trade
pricing regulations pricing regulations landscape
landscape
improvements
improvements
Tax Reporting
Legal Entity Planning
Lack of integration of internal
controls over financial
reporting processes with
other operational and/or
compliance processes
Inability to identify and
remediate material
weaknesses and significant
deficiencies
Material misstatements in the
financial statements
Inability to report on the
effectiveness of internal
controls
Human Resources
Finance
Legal
Compliance
Noncompliance with local filing
requirements
Failure to maintain adequate
documentation for claiming of tax
audits across jurisdictions
Inability to produce tax basis
balance sheets
Improper valuations
Lack of integration of internal
controls over financial reporting
processes with other operational
and/or compliance processes
Inability to identify and remediate
material weaknesses and
significant deficiencies
Inadequate global tax provision
evaluation
Litigation & Dispute
Resolution
Failure to assess local
regulatory and compliance
risks while forming a new entity
Inadequate local legal counsel
Complexities in revising
contracts with customers/
vendors for merged entities
Residual claims from disposed or
acquired entities
Inadequate assessment of the
entity structure
Lack of pre-emptive legal risk
management process
Lack of full understanding of
local tax incentives
Pass-through liability from business
partners
Ineffective litigation risk assessment
Inability to defend lawsuits
Taxation
Accounting
Inability to meet tax
requirements
Inappropriate accounting
policies
Inadequate tax risk
management
Lack of integrity of
financial information
Inadequate recorded or
overly aggressive tax
planning
Insufficient anti-fraud
programs and controls
Noncompliance with transfer
pricing requirements
Inappropriate/inadequate
manipulation of estimates
and reserves
Risk of cross-border liability
Audit Quality
Privacy & Security
Laws
Labour &
Employment Issues
Failure to assess the
effectiveness of internal
controls
Capital Management
Failure to evaluate optimal
sources and cost of finance
Ineffective audit planning
Compliance with
Accounting
Standards & Policies
Failure to establish formal
privacy policies
Management
Reporting
Inability to implement
International Financial
Reporting Standards(IFRS)
and/or local reporting
standards
Ineffective presentation of
information
Inappropriate accounting
policies
Insufficient sharing of
information
Failure to implement privacy
programs in accordance with
local regulations
Failure to comply with
applicable privacy legislations
Inability to report on key
metrics
Failure to incorporate local
employment laws into
Human Resources policies
Failure to engage with local
trade unions or other local
bodies
Lack of information on legal
capital requirements
Management override of
controls
Lack of understanding of
local exchange controls
Lack of independent auditors
Inadequate capital structure
and debt/equity
Inability to access additional
capital
Lack of awareness of
employment laws among
personnel
Failure to optimise capital
structure
Lack of knowledge of
accounting policies
Inability to monitor and
implement standards
Failure to establish a record
keeping policy
Failure to register IP rights
locally
Inappropriate information for
investment decisions
Inability to produce records
Failure to protect sensitive
information pertaining to IP
Failure to align investments with
business strategies
Unavailability of financial
information to make
decisions
Noncompliance with
applicable laws and
regulations
Lack of data quality and
integrity
Sustainability
Reporting
Failure to disclose non-compliance
with applicable environmental laws
and regulations
Failure to position sustainability as
an investable concept
Inability to address shareholder
concerns
Lack of adherence with record
keeping laws and obligations
Financial Disclosure
Lack of knowledge to preserve
legal evidence
Incorrect disclosures or missed
events due to lack of data integrity
Inadequate management discussion
and analysis of events that may
require a disclosure
Financial Statement
Fraud
Lack of effective internal
controls
Ineffective anti-fraud
Programmes
Failure to implement
segregation of duties
Intellectual Property
Infringement of IP rights owned
by others
Failure to protect the use of IP
Failure to support international
patent rights
Failure to disclose information
required by accounting standards
and local regulation
Inadequate management discussion
and analysis
Corporate Assets
Supply Chain
Human Resource
Policies &
Procedures
Human Resource
Policies & Physical Security
Procedures
Physical Security Planning
Government
Investigations
Corporate
Investigations
Lack of guidance regarding
matters of government
investigations
Corporate criminality and
questionable practices
Failure to identify areas of
concern that could trigger
governmental investigations
Improper internal investigation
and inefficient communication
programs in times of crisis
Failure to implementationfraud controls
Inadequate execution of
independent internal
investigations
Lack of regulatory awareness
Lack of coordination between
legal and other appropriate
departments
Competition
Lack of understanding of the
industry and market the
organisation operates in
Failure to comply with applicable
anti-trust/pricing regulations
Failure to understand and pursue
benefits of anti-trust laws and
regulations
Financial Asset
Investment
Liquidity
Inadequate funding and
liquidity
Inadequate analysis of
market depth
Inadequate working
capital management
Supply Chain
Planning Architecture
Information Technology Information Technology
Architecture
Business Continuity
Management (BCM)
Business Continuity
Management (BCM)
Inability
Failure to implement security Failure to implement security
Failure to implement a technology to implement a technologyto recover from a
Failure
Lack of data availability and data of data availability and data
Lack
Inadequate employment appropriate to the local
business interruption
controls
controls appropriate to the local
aligned with the organisation’s
aligned with the organisation’s
integrity to accurately plan integrity to accurately plan
standards
(including lack of
environment
environment
local strategy
local strategy
electricity)
Compliance with local fair Compliance with local fair
Inaccurate demand/supply forecast
Inaccurate demand/supply forecast
Ineffective
Ineffective physical security risk
Architecture is not aligned with
Architecture is not aligned with
employment practice is not employment practice is not physical security risk
Lack of understanding of
mitigation plans
mitigation plans
corporate strategy
corporate strategy
monitored
monitored
Inadequate capacity planningInadequate capacity planning
where particular data
resides
Lack of communication and Lack of communication and processes and Inadequate processes and
Inadequate
System architecture design does
System architecture design does within the
Inability to determine and maintain to determine and maintain
Inability
enterprise
training around employment training around employment
policies to secure physical policies to secure physical
not include data management, include data management,
not
optimum safety stock
optimum safety stock
standards
standards
assets
assets
integrity, security and privacyintegrity, security and privacy
Lack of proper planning for
requirements
requirements
critical infrastructure
Theft of assets
Theft of assets
disruptions
Inability to develop a business
Inability to develop a business
Inadequate employment
standards
Training &
Development
Training & Insufficient insurance
Development
Ineffective/inadequate
training and development
programs
Ineffective/inadequate
training and development
programs
Intangible Assets
Lack of adequate programs Lack of adequate programs
for continued employability for continued employability
of employees
of employees Copyright/trademark
infringement
Training and development Training and development
program not aligned with
program not aligned with trade secrets
Theft of
business plans
business plans
Production
Insufficient insurance
Production
driven architecture
driven architecture
Inability to recover data
Inefficient warehousing/
Intangible Assetsinventory management
processes
Inefficient warehousing/
Records
inventory management
Management
processes
Records
Management
Contracting &
Outsourcing
Lack of understanding of
where particular data
resides within the
enterprise
Lack of proper planning for
critical infrastructure
disruptions
Inability to recover data
Contracting &
Outsourcing
Lack of holistic data
management leading to
inaccurate assessment of
which business processes
should be outsourced
Poor security and privacy
controls of outsourced data
Contractual inability to
review security and privacy
practices
Labour Relations
Inability to procure goods/raw
Inability to procure goods/raw
Improper production planningImproper production planning effectively andmaterials cost effectively and
Technology
materials cost
Information Security
constrain volatile material costs
constrainInformation Security
volatile material costs
Licensing
Poor labour conditions
Inadequate capacity planningInadequate capacity planning
Ineffective engagement with Ineffective engagement with
Inadequate supplier selectionInadequate supplier selection
Lack of data integrity and/
Inappropriate location and/or Inappropriate location and/or
labour unions and local
labour unions and local
process
process
Lack of data protection controls of data protection controls quality of
Lack
or data
inefficient operation of assetsinefficient operation of assets
authorities
authorities
increases vulnerability to attack
increases vulnerability to attack
technology licensing data
Over-reliance on sole source Over-reliance on data leakage, either
and sole source
and data leakage, either
Significant adverse conditions
Significant adverse conditions
vendors
vendors
externally or internally
externally or internally
in collective bargaining
in collective bargaining
Failure to comply with
agreements
agreements
legal
Personal Safety
Personal Safety Inability to monitor contract Inability to monitorof physical/logical security of physical/logical securityrequirements
Lack contract
Lack
Poor labour dispute resolution
Poor labour dispute resolution
compliance and sustain
compliance and sustain
Failure to constantly
process
process
sourcing savings
sourcing savings of segregation of duties Lack of segregation of duties
Lack
review the applicable
Inadequate personal safety Inadequate personal safety
legislation
and insurance
and insurance Inadequate quality to goods/ Inadequate quality to goods/
Failure to implement adequate
Failure to implement adequate
raw materials
raw materials
information security procedures
information security procedures unlicensed and
Use of
Organisation
Organisation Lack of adequate processes Lack of adequate processes
and technologies
and technologies
inappropriate software
for periodic review,
Structure
Structure for periodic review,
communication and
communication and
enforcement of health and enforcement of health and
Delivery
Delivery
Unclear lines of authority
Unclear lines of authority
safety policies
safety policies
Poor labour conditions
Abuse of authority
Inability to recover from a
business interruption
(including lack of
electricity)
Lack of operational uniformity
Lack of operational uniformity
across production facilities across production facilities
Lack of holistic data
Copyright/trademark of manufacturing flexibility of manufacturing flexibility
Lack
Lack
Improper management of records
Improper management of records
management leading to
infringement
to react to disruptions
to react to disruptions
inaccurate assessment of
Failure to maintain security Failure to maintain security
which business processes
Theft of trade secrets
Inadequate quality control Inadequate quality control
should be outsourced
measures
measures Failure to comply with legal and
Failure to comply with legal and
Lack of labor
Lack of labor contracts
Inappropriate outsourcing of Inappropriate outsourcing of contracts
tax requirements
tax requirements
Poor security and privacy
the training and
the training and
controls of outsourced data
Underutilisation of intangibles
Underutilisation of intangibles
development function
development function
Lack
Sourcing
Sourcing Lack of data retention policies and of data retention policies and
procedures
procedures
Contractual inability to
review security and privacy
Complex import and customsComplex import and customs
Utilisation
Utilisation
practices
regulations
regulations
Labour Relations
Records &
Information
Management
Financial Information
Availability
Human Resources
Corporate Assets
Abuse of authority
Non-compliance with
applicable laws and
Inappropriate delegation of Inappropriate delegation of
regulations
authority
authority
Non-compliance with of physical infrastructure
Lack
Lack of physical infrastructure
Project Management
applicable laws and
hindering transportation
hindering transportation
regulations
Technology
Licensing
Lack of data integrity and/
or data quality of
technology licensing data
Failure to comply with
legal requirements
Failure to constantly
review the applicable
legislation
Use of unlicensed and
inappropriate software
Project Management
Unreliable third party logistics
Unreliable third party logistics
Inappropriate distribution of Inappropriate distribution of
Failure to monitor, communicate,
(3PL) service providers
(3PL) serviceFailure to monitor, communicate,
providers
decision-making authority decision-making authority
and report on project progress report on project progress
and
Taxation
Taxation
Failure to optimise lead time for
Failure to optimise lead time for
Failure
Failure
supplies/distribution
supplies/distribution to obtain proper approvals to obtain proper approvals
and stakeholder buy-in
and stakeholder buy-in
Excessive tax valuations of Excessive tax valuations of
Incorrect or delayed deliveries
Incorrect or delayed deliveries
property
property
Failure to identify,
Failure
due to inaccurate/incomplete due to inaccurate/incomplete prioritise, report, to identify, prioritise, report,
and
customer data
customer data manage project goals and manage project goals
Failure to minimise tax
Failure to minimise tax
costs of acquiring and
costs of acquiring and
locating physical assets and locating physical assets and
facilities
facilities
The Passport Mask
Region: West and Central Africa
Material: Clay, paint
These masks were used to safeguard and identify travellers.
Each African society was protected by a principle mask
and miniature replicas were made to protect members of
that society. These were worn on the upper arm and could
be concealed under a strip of cloth to maintain secrecy, or
exposed to reveal identity.
