Page 36 - Risk Report 2024

IRMSA
36 RISK REPORT 2024/25
Scenario:

What it can look like if it happens now

Following a breakdown in coalition or government of national unity arrangements, the national parliament,
any provincial parliament, or any of the main metropolitan councils become dysfunctional, leading to a
national policy paralysis on key issues, disparate international relationship signals, and uncontrolled
dissipation of assets. Amongst other international reactions, the USA cancels all AGOA legislation and SA
loses its duty-free trade benefits.

Immediate resilience/emergency

preparedness: Medium impact in the

short term

Political, policy and regulatory
monitoring Update BCPs

• Monitor national/regional changes in State/ Update BCPs to address anticipated potential
party alignments. political shifts that affect key vendors or
• Identify change impacts from tax, labour customers (e.g. government leadership,
laws, trade policies, industry regulations on coalition dynamics, and fluctuating diplomatic
the organisation. relationships with key trading partners).
• Evaluate impact of political instability on
international partnerships, stakeholders,
and commercial relationships.
• Assess exposures to loss of trade benefits
and investments initiatives sponsored by
foreign governments.
• Analyse dependencies on credit lines that
may be curtailed following breaches of
loan covenants that have political and
governmental stability requirements.

Open communication Diversification
channels
Diversify raw material, component, and services
Establish open communication channels with sources, for if key suppliers become inaccessible
government officials, regulators, industry following political instability or change.
bodies, and community representatives to
foster smoother relations and operations during
unexpected changes; maintain a list of key
political and commercial contacts in BCPs.

Diversification

Localise operational activities in the economy, (e.g. manufacturing, supply chain, workforce
development) to reduce reliance on international markets and exposure to global trade disruptions
following disputes on local or foreign policies.