Page 3 - IRMSA Risk Report 2021

HOW TO READ THE IRMSA RISK REPORT SOUTH

AFRICA RISKS 2021
South Africa has to create a better reality. Scenarios of what that reality may look like have been well defined over time. As citizens
and organisations we define strategies to help us survive and to thrive in the scenarios we believe may play out, but we seldom ask
ourselves whether we have the tools to enable a preferred scenario to materialise. This report positions Risk Management as such
a tool. Highlighting risks and risk response strategies that will reduce the impact and likelihood of threats and leverage the same to
create opportunities leading to the achievement of the preferred scenario for South Africa.

MARK VICTOR
THE SOUTH 1
AFRICAN
WHAT DOES THE WORLD OUT THERE LOOK LIKE? CONTEXT
We start our 5-part journey in the IRMSA Risk
Report 2021 by considering the context in which
South Africa’s future is currently being shaped
considering the views of six prominent leaders in CHRISTELLE MARAIS
our country. They highlight threats and
opportunities and share the risk response to
strategies that they consider necessary to create a
better future. This synopsis sets the scene to
assist with the evaluation of the flags that will
inform the different scenarios that may WHAT CAN AND SHOULD WE DO ABOUT IT?
materialize, and how they could be influenced by
effectively responding to the most significant risks. SCENARIOS The uncertainty of how certain scenarios may
FOR A unfold is what informs our strategies as individuals,
FUTURE IN 2 organisations and the country. Effectively
leveraging our synergies, including resources, and
WHICH responding to the correct flags will allow us to
SOUTH drive the country towards owning its future. This
AFRICA CAN section of the report, demonstrates how:
PROSPER if we continue as we are doing we will, most likely
soon, reach a point of no return. Facing a
“perpetual hangover”, undoing the progress made
over the last few years and negatively impacting
many generations to come.
if we sustain the progress made so far, but do not
act more decisively to respond to the risks
identified in this report, we may find ourselves in
the “fake it until we make it” scenario before we
CHANDU KASHIRAM inevitably slip back into a “perpetual hangover”.
if we are able to effectively respond to the risks
TOP RISKS highlighted in this report, and act as a collective
FACING 3 in the building of a robust, inclusive and equal
HOW DO WE NAVIGATE WHAT WE DON’T HAVE SOUTH society, we may be able to own our future.
ENOUGH INFORMATION ABOUT?
AFRICA
The top 12 risks for South Africa have been
identified and analyzed against top global risks as
well as views of subject matter experts. The time
horizon takes into account risks that the country
needs to address if we are to reach our 2030
National Development Plan objectives. The risk
areas are all too familiar to us and therefore it may
appear that we are trying to address the same
risks. However, given the time horizon and the
significant challenges we face, each risk has been WALTER EHRLICH
unpacked to answer the question "what if they
materialize or deteriorate further?" Risk
mitigations identified require significant resources COMPETENCIES
and changes in leadership, policy, service delivery TO BUILD A
etc. to ensure that we move from the "perpetual RESILIENT 4 WHAT DO WE NEED TO BE ABLE TO DEAL
hangover" scenario to "owning our future". RISK WITH IT?
SOUTH AFRICA Making sense of risk and effectively responding to
risk require planning and unplanning as we
navigate perpetual uncertainty. It requires fewer
risk registers and more scenarios, better risk
appetite frameworks, systems thinking and the
ability to deal with complexity; considering both
expert and maverick ideas. This part of the report
considers the competencies required for leaders,
managers, workers and functional experts to
CHRISTOPHER PALM create risk intelligent and resilient organisations.
WHAT ARE THE MOST IMPORTANT NEXT STEPS
TO GET US GOING IN THE RIGHT DIRECTION?
For South Africa to have a future owned by all and in ACTION 5
IRMSA’S
which all prosper, our national, provincial and local
governments and its leaders, governing bodies and its CALL TO
members, executives and all levels of management
including the risk management fraternity MUST work
with one goal in mind: to become a risk intelligent and
resilient society in which we collectively manage our
risks comprehensively and in a way that benefits South
Africa and its citizens.
3