Page 7 - Risk Report 2024

IRMSA
7
RISK REPORT 2024/25

‘Imagination is more important than knowledge.

For knowledge is limited, whereas imagination

embraces the entire world, and all there ever will

be to know and understand.’ Albert Einstein

In this context, none better than risk managers understand the importance
of being bold, creative, and forward-looking. We must be courageous and
innovative as we attend to our readiness for, and pursuit of, sustainable
development, by managing all risks that threaten the developmental goals of
the country. One way of ensuring creativity, boldness and foresight is to factor
in the views and experiences of young people in the crafting and execution of
risk management strategies.

Above all, by providing frameworks for forward-focused risk-based decision-
making, risk managers enable entities to navigate uncertainty with the
imagination, empathy, and urgency needed to navigate a complex and rapidly
changing world. Only in this way will we turn challenges into opportunities
for growth and innovation. Amid great technological changes, we must take
the bull by the horns and not (solely) rely on AI and predictive technologies.
In a world where information and services are instantly available, we may
be tempted to create echo chambers and avoid discomfort. Astute risk
management gives us the only chance of survival. More than ever before,
we must do the things that machines cannot do or cannot do well. Intuition,
instant processing of information based on instinct, and the human drive for
improved lives, will set us apart in a digital world.

In challenging environments like South Africa, where inequality, poverty, and
crime confront us every day, we cannot afford to be nonchalant about the
fate of our dying earth; nor can we become passive spectators. Now is the
time for risk managers to lead from the front. Now is the time for South
Africans to become leaders in their everyday lives, to be accountable with
purpose, to build on our learnings from the past and to bridge the social
divides that remain in our society. The 2024/25 IRMSA Risk Report outlines
the kind of action and engagement that will turn passive spectators into
active participants. The Report emphasises vision, action, and imagination,
and presents information about our possible futures from different lenses
(risk, economic sector, and geography) with suggestions to inspire proactive
solutions rather than induce paralysis.

While we may be running out of our national ‘resilience’, there are many
positive developments that support achievement of our goals. As our risks
have become more critical, action is needed, and indeed being taken. For a
brighter future, we must continue to refocus our priorities and direct scarce
resources to where it matters most, and work with those who are already
finding solutions. As we navigate uncertainty, we must build a future where
our political and economic efforts support an optimally functioning State,
a growing economy, and the rule of law. We must leverage technological
advances to deliver water and energy, to ensure food security, to mitigate
climate change, and to roll out education programmes that will power the
country for the 21st century.