Page 70 - Risk Report 2024

IRMSA
70 RISK REPORT 2024/25

8.11 Technology

Rapid AI, robotics, and disruptive technology advancement could improve living standards,
food security, medicine, service delivery, and clean energy.

But the resultant economic and social changes, revolutionised industries, automated jobs, and altered ways to live
and work pose risks. Pursuit of these opportunities also results in increased reliance on technology infrastructures
with associated vulnerabilities requiring robust ICT continuity plans. Causes of the risk include the following:
• Unforeseen vulnerabilities due to rapid adoption without adequate risk assessments or preparation for
potential effects.
• Increased impact of disruptions from heavy reliance on digital infrastructure for essential services and
economic activities.
• Weakened cybersecurity due to outdated systems, lack of investment, and insufficient training for employees.
• More sophisticated cybercriminals, state-sponsored actors, and hacktivists, requiring constant vigilance and
adaptation.
• Lack of transparency on the inner workings of AI systems complicates the anticipation and mitigation of
future risks.
• Inadequate/outdated regulations leaving gaps for exploitation and insufficient protection of infrastructure
and data. The recent EU AI Act’s attempt at a regulatory framework could inform local trends. Some of its
objectives are as follows:
• Setting standards to ensure AI systems are safe and respect human rights (privacy, non-discrimination,
dignity).
• Fostering development of transparent, accountable AI that aligns with ethical principles, increasing public
trust.
• Establishing harmonised rules and requirements for AI systems to facilitate a single market for AI products
and services.
• Establishing risk-based AI regulation with stricter rules for high-risk areas (healthcare, transportation,
law enforcement).
• Encouraging innovation and deployment while addressing risks and challenges to support economic
growth.

TANYA KRUGER PEDRO MAIA KERUSHAN GOVENDER JONATHAN CRISP
Compliance Officer Managing Director Chief Executive Officer Director
Purple Group Endev Technologies Blacfox BarnOwl
Development Bank