Page 143 - Risk Report 2024

7. Energy 8. Logistics

Like water supply failures, electricity uncertainty is compounded Efficient logistics and supply chains are key to the sector’s
by loadshedding. Sector entities must consider alternative success, as failure of one element can cause delays impacting
energy sources for BCPs to be effective. Loadshedding and grid costs, product viability, and storage. Increased costs
failure disrupt communication channels, affecting coordination overburden the financially constrained sector, and lead to
with staff, partners, and beneficiaries. This impedes decision- massive, incremental increases on basic services and goods
making, hinders collaboration, delays dissemination of critical for its beneficiaries. Impact on the sector’s constituencies
information, and raises operational costs to secure alternatives could be lessened by providing necessities, diversifying sector
such as generators. NGOs must ensure that employees are players’ supplier bases and legally challenging inefficiencies.
sufficiently resourced to be available online when working from Depending on the specific entity’s offerings, the supply chain
home during loadshedding. resilience enables NGOs to adapt to changes such as demand
shifts, regulatory requirements, or environmental factors.
Flexible supply chains allow NGOs to respond to evolving needs
and challenges and ensure continuity.

9. Food Security 10. Climate Change
Many NGOs operate solely in this space and therefore any The risk, as a social justice issue, is acutely felt by the most
impact on food security would greatly impact their ability to vulnerable in society via floods, heatwaves, food shortages, and
serve their communities. Mitigation requires education on rising sea levels which in turn result in displacement, increased
food waste and insecurity, supporting at-risk communities, and poverty, and diseases – with tremendous pressure on entities
increasing advocacy and local and international activism. in the sector. Environmental factors encompass the sector’s
impact on nature, its carbon footprint, waste management
practices, and natural resource conservation. Due to its global
scale, the risk is mitigated locally and internally by non-profits,
depending on their size and reach. Mitigation includes internal
and community education programs, collaboration with other
partners, and providing platforms for those affected. NGOs
must be cognitive of and inform their staff proactively of
environmental hazards that could impact the safety of staff,
their productivity and availability in operational locations.

11. Technology 12. Skills

New technology transforms the sector through enhanced Resources challenges are persistent in the sector (especially
efficiency, automating repetitive tasks, and enabling data- affected by geographical location), and in the face of
driven decision-making for improved productivity, innovative technology and geopolitical developments, often ill-equipped
products and services, and competitive advantages. While persons may become irrelevant. For many sector clients
offering benefits, technology introduces cyber risks. NGOs upskilling of their staff through NGOs (e.g. professional bodies)
must adapt their technology infrastructure, security, and is non-essential, usually volunteer based, and subject to time
response strategies. A major risk is data privacy and use, as donation. Mitigation includes social media enabled volunteer
it affects the trust relationship between a donor and their networks, remote working opportunities, and voluntary
chosen NGO to deliver on their word to carry out agreed upon selection for project programs and timelines. The sector invests
services. Any suspicion of privacy or ethical concerns around in education and staff development in an effort to maintain
personal data immediately breaks the trust and support would relevant skills, and supportive work environments that promote
be discontinued. AI generated communication to donors must collaboration, creativity, productivity and well-being. A healthy
be carefully reviewed to prevent perceived manipulation or ethical organisational culture also contributes to higher job
mistrust. Response includes investing in information security satisfaction, staff morale and retention.
and ensuring compliance with information privacy laws. Staff
and volunteers must be trained on appropriate procedures.