Tag: BusinessRisk

For many South African businesses, spring marks the start of one of the busiest periods of the year. Retailers begin building stock ahead of the festive season. Meanwhile, manufacturers land export orders they've been chasing since autumn, and contractors pick up tenders that stalled over the colder months.

With the growing use of Artificial Intelligence (AI) and its integration into corporate systems, a key question arises: can a company be held responsible for misleading statements made by its AI chatbot to a customer? This issue arose in Moffatt vs Air Canada, a case concerning a refund for a bereavement fare. Although a Canadian small-claims tribunal decided the case in 2024, its ruling does not bind South African courts.

When organisations conduct due diligence on a new customer, supplier or business partner, they often feel reassured once they verify the basics. The company registration checks out, the directors are identified, and the necessary documentation has been collected. The onboarding process then moves forward with confidence.

Running a business means managing risk every day. Whether it's protecting assets, managing cash flow or ensuring regulatory compliance, business leaders understand the importance of planning for the unexpected. However, one risk often receives far less attention. It is the possibility of a tax audit.

South African businesses do not need to look far for a cautionary tale. The fallout from the Steinhoff scandal continues to reveal how weak governance, inadequate scrutiny of business relationships and unchecked transactions can destroy billions in shareholder value. What began as aggressive growth ultimately became one of the country’s most expensive lessons on the cost of insufficient oversight.

The first quarter of the year is often one of the most financially challenging periods for South African businesses. Companies absorb year-end expenses during this time. They also navigate delayed customer payments and face slower trading conditions. As a result, many companies enter the new year under significant cash-flow pressure.