Page 45 - Risk Report 2024

IRMSA
45
RISK REPORT 2024/25

Longer-term response to address risk

sustainably

Risk drivers Response strategies Impact

Ineffective access to cost effective Accelerate property ownership on State housing, loan Medium term:
capital and related security (land facilities linked to business development. High
transfers, title deeds), excessive cost
of debt for SMEs in the unsecured loan
sector.

Poor and declining standards of Reskilling at all levels linked to experience at work as an Medium term:
education in the public sector, skills employer offset to SETA costs with relief on minimum wage, High
are often not relevant to employment including increasing access to entrepreneurial opportunities
opportunities, unemployable youth. for the youth.

Social relief programs that do Employers to become pay points for staff receiving grants with Medium term:
not promote seeking of work and a ‘bonus’-amount offset against UIF costs. High
skills development, entrenched
dependency on social grants, declining
employability, skills regression.

Inadequate savings culture and Broad based financial support for targeted capital Medium term:
inappropriate use of expensive accumulation and education, standard private insured life High
financial products (microloans, pay and health benefits that accumulate savings, creating more
day loans, funeral policies, lottery, inclusive social security systems that include provisions for
pawn shops). informal and atypical workers.

Poor economic growth, inadequate Remove bureaucracy and excessive labour rules for Medium term:
public works projects, little small business, open economy to international skills and High
employment leverage from local investment transfers.
authority spending caused by tenders
and corruption.