Fraud
75
Fraud and corruption have re-emerged as a significant risk for many mining and metals companies . EY believes that ’ s the result of detection techniques becoming more sophisticated rather than increased corrupt activities . In addition , social media has allowed for allegations of impropriety to be made globally visible with unprecedented speed , regardless of whether or not they are founded . This places the risk of fraud hand-in-hand with the risk to reputation and licence to operate . As miners increase their use of digital tech for global connectivity , exposure to fraud is heightened . Higher commodity prices and rising cash flows have seen a surge in exploration projects , however , this often involves multiple contractors , contributing to an average of 8 % of capital expenditure either noncompliant or misallocated . EY notes that companies are responding by leveraging the predictive capabilities of big data to make real-time assessments to manage with more effective oversight and mitigate fraud and compliance risks .
www . miningglobal . com