Page 64 - IRMSA Risk Report 2021

4.1 INTRODUCTION
For South Africa to become a risk-resilient country with a thriving economy – able to overcome shocks, bounce back, and grow –
specific risk-management competencies are, amongst others, required at the level of the state, organisations, and risk professionals.

Risk is not binary. It is not all bad or all good, and it comprises both threats and opportunities. Likewise, risk management is not
binary. It is intuitive and counterintuitive, partly art and partly science; related and unrelated; simple and complicated.

To make sense of uncertainty and the risks it introduces, various entities must necessarily comprise a litany of risk-management
competencies to nurture creativity whilst retaining unity of purpose on emerging risks, adaptive responses, and a focus on building
resilience to create a future in which all South Africans can prosper. These entities include the state; the organisations that make up
and fuel the economy and society; and risk professionals that develop and bring risk-management expertise to bear.

4.2 A CHANGED WORLD
The leadership interviews, scenarios, expert opinions, and top risks confirm that we are living in a world, and at a time, where we can
tangibly appreciate that risk is the effect of uncertainty on our personal and business objectives. The world has changed because of
Covid-19, as well as political and organisational leadership responses to it. But this is neither the only nor the last driver of change
that we will experience. There always have been, and there always will be, a next disruptor, followed by another – and they will, most

likely, not follow in a sequential and orderly way.

Based on an analysis of 95 responses from business leaders and risk professionals in relation to the skills and attitudes through the
Covid-19 period, the SenseMaker™ survey revealed that the following skills and attitudes are required as we go forward.

Importance going forward ...
Decide while vague
Ability
100
Open to new
� �
� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � Course correct
Low <−−−−− Importance going forward −−−−−> High 50 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� � � Making connections
� �
� �
Courage
75
� �
Plan while doing
Expect unexpected
Plan consequences
Pattern recognition
� �
25
� �
� �
� �
Curiosity
� �
� � � �
�
� �
� � � � � � � �
� �
� �
�
�
� � � �
�
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�
�
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� �
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� �
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Diverse views
Filter noise
0
0 25 50 75 100 Decide while vague
Never <−−− Used during pandemic −−−> All the time 0 25 50 75
Low <−−−−−− −−−−−−> High
SOURCE: IRMSA SENSEMAKER™ SURVEY, 2020
SenseMaker™ found that listening to and distilling diverse views is important for risk awareness, and that more emphasis is
required in this area. They found that taking decisions based on vague information might be a blind spot and IRMSA concluded that
developing skills in the face of vague, and at times contradictory information is a risk management competency that will need to be
further developed.
For risk management, these times present an opportunity that must be seized to demonstrate the purpose and value of Risk
Management. However, value will not be demonstrated by doing the same things in the same way, as we have always done. We
need to continue doing the beneficial things that we have been doing – but we also need to do new things in new ways. For that to
happen, we need to make sure we have the requisite competencies.
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