Compliance Risks in Finance in Namibia: A Growing Concern for Organisations

Organisations in Namibia are facing a multitude of internal and external risks that threaten their stability and profitability. The country’s economic landscape is complex, with various factors contributing to the risk landscape.

Internal Risks

• Non-compliance with laws and regulations
• Breaches in cybersecurity
• Day-to-day business procedures

These internal risks can have severe consequences if left unchecked. Moreover, external factors such as:

Economic Recession

• Namibia’s real GDP peaked at 6.1% in 2015 but declined by an estimated 0.5% in 2018 and a further 1.0% in 2019
• Government fiscal consolidation efforts aimed at correcting growing imbalances caused by high public spending and falling revenues from the Southern African Customs Union

COVID-19 Pandemic

• The recent crisis has underscored the importance of effective risk governance and culture for organisations in Namibia
• “Black swan” risks, characterised by low likelihood but catastrophic impact, such as pandemics, are testing the agility of Namibian companies

Effective Risk Governance and Culture

The COVID-19 pandemic has highlighted the need to evaluate the risk management practices and cultures within Namibian organisations. As a result, there is a pressing need for companies to strengthen their risk management frameworks and mitigate compliance risks in an increasingly complex business environment.

2019 Deloitte Corporate Governance Survey

This article draws on the findings of the 2019 Deloitte Corporate Governance survey to provide valuable insights for companies seeking to strengthen their risk management frameworks and mitigate compliance risks. The results of this survey will offer valuable insights for organisations looking to navigate the complex risk landscape in Namibia.

By understanding the compliance risks facing finance organisations in Namibia, we can work towards creating a more resilient and agile business environment.