Page 31 - Risk Report 2024

IRMSA
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RISK REPORT 2024/25

If not addressed systemically and urgently, these risks will lead to the following:
• Further demise of local government capacity and critical service delivery failure in areas with high vacancy
rates, and/or appointments of unqualified, unskilled and incompetent candidates in crucial technical,
administrative, and management positions responsible for planning, budgeting, and infrastructure project
implementation.
• Increased litigation against municipalities, with courts setting aside appointment of persons without the right
skills, expertise, competencies and qualifications on grounds of unlawfulness and irrationality.
• Increased corruption, service delivery failures, public protests, social tension, increasing unemployment, low
economic growth, increasing poverty, instability, and ultimately a failed State.

Risk Impact on Economic Sectors

Agriculture, Forestry & Fisheries 8 Mining 11
Communication 5 Professional Services 14
Construction & Real Estate 13 Public Service / Government 1
Education 3 Sport & Recreation 15
Energy 2 Tourism & Hospitality 9
Healthcare 4 Retail, Trade & Commerce 12
Financial Services 7 Transport & Logistics 6
Manufacturing 10 Non-Profit / Civil Society / NGOs 16