Page 34 - IRMSA Risk Report 2023
P. 34
CHRIS YELLAND
6.6 AREAS OF FOCUS
Deresh Lawangee, thinks that the increasing cost of capital is a risk area for
businesses in the very short term. Says Lawangee: “If you get to make sure that
your business is immune to that, that you can operate in that type of environment.
Also, immediately with the energy crisis, you’ve got to make sure that your business
and your operations are not going to be affected by the lack of electricity in the
country.”
Kiren Maharaj, expands on this statement, saying: “Again, I think that to accelerate
the decarbonisation of the economy and to embrace that aggressively is a smart
move to achieve energy security, but also to protect the economy and the
environment.”
Advocate Kevin Malunga believes that knowledge truly is power, and it is crucial
to avoid simply going through the motions of compliance without fully considering
the impact of our actions or inactions on risk.
Chris Yelland, well known journalist, energy expert and consultant amplifies this
comment by Advocate Malunga by pointing out the fragile state of the social
fabric of society in South Africa. People are worried, scared and sensitive and
these fears present very real risks and consequences.
“I suggest that the social fabric of society in South Africa, right now, is very delicate
and driven by very high levels of poverty, inequality and unemployment.
These are significant drivers of people’s social wellbeing, mental and physical
health and sense of worth. There is significant discontent on the ground, in the
poor areas specifically, about feeling neglected”. Yelland continues by highlighting
the fact that it goes beyond just the obvious challenges such as not having access
to electricity, water, housing and other services. It requires consideration of the
interconnectedness of things that may seem obvious and mundane to some but
for others, it leads to social bankruptcy. We need to be innovative and act with
creativity if we wish to achieve different results as in the end poverty, unemployment
and inequality will be fuelling a potential flashpoint.
34 IRMSA RISK REPORT 2023/24