Page 35 - Risk Report 2024

IRMSA
35
RISK REPORT 2024/25

• If efforts to establish a functional government fail (whether in the short- or medium-term), the following will
result:
• Power struggles between parties with differing ideologies and agendas, which can hinder decision-making
and incoherent and ineffective governance.
• Policy paralysis in the absence of consensus on policy issues, if compromise in the national interest is
sacrificed.
• Lack of accountability if responsibility for decisions is diluted among parties, resulting in decreasing
transparency, increasing corruption and impunity among government officials.
• Weakened opposition as all parties are brought into the coalition, which will reduce checks and balances
in the political system, compromise the democratic process, diminish the voice of marginalised groups,
and limit public debate on fundamental issues.
• Public disillusionment may lead to a decline in public participation in democratic processes, increase
voter apathy for future elections, and ultimately undermine the legitimacy of the Government of the day.

Risk Impact on Economic Sectors

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