Page 6 - IRMSA Risk Report 2023

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MESSAGE FROM

THE PRESIDENT

OF IRMSA

Our power exists in the ability

to be resilient and exploit the

limitless opportunities hiding in

our challenges.

Without a doubt, we are facing a polycrisis that sector, public servants, and non-profit workers),
impacts our macro and micro-environment in an and economic leaders of SA can’t be downplayed.
intertwined and interconnected way. Every day, we With SA ranking last in the latest Mental State of the
witness risks increasing in severity and frequency, World Report the current leaders take significant
materialising simultaneously and in some cases strain with the mental health of those they lead,
continuing to recur. The interconnectedness of including themselves. As humanity, we can only
risks is evident from the downstream ripple effects respond to so much – and it is possible that we may
created as these risks materialise. be reaching the breaking point if we don’t turn this
trend around.
Just as the world began to recover from the
COVID-19 pandemic, the Russia/ Ukraine war broke We can easily become overwhelmed by negativity,
out which plummeted an already fragile global which we must work hard to avoid. It is rightly said
economy into a new crisis of high inflation, energy that “victory comes from finding opportunities in
supply shortages, supply chain disruptions, and problems”. It is thus time for us as the individuals
rapidly escalating cost-of-living in many countries. that make up organisations, both private and
public, to be leaders at any level where we may find
In South Africa, the socio-economic risks continue ourselves, and for risk professionals to identify and
to escalate due to persistent structural deficiencies. seize the limitless opportunities and possibilities
that lie just beneath the surface of the polycrisis.
The worsening energy crisis, manifesting through
unprecedented levels of load-shedding, is playing Power shortages in SA have accelerated our
out against a backdrop of other issues. In addition transition to green energy, with a booming market
to these challenges, we face a divided society – a for solar installations and the emergence of
“gwara-gwara”-reality as defined in the Indlulamithi innovation, as well as the new SMEs who remain
Scenarios. Stubborn high levels of unemployment a cornerstone for our economy, contributing a
and inequality, near-zero economic growth, the significant amount to SA’s GDP growth and job
recent greylisting of SA, and the potential for creation. Instead of joining corporate SA after
further unrest and riots is a toxic mix leading some studying, many young people are starting their
commentators to speculate on whether SA is on own little entities to earn their living and finding
the brink of becoming a Failed State, or already is a innovative ways to employ others, even if this is part
Failed State. The impact on us as citizens who make of an informal economy that is not fully reflected in
up the individuals, families, employees (private national statistics.

6 IRMSA RISK REPORT 2023/24