Page 71 - Risk Report 2024

IRMSA
71
RISK REPORT 2024/25

If unaddressed, the risk could lead to the following:
• Inadequate preparation for disruptive technologies may lead to SA falling behind in global competitiveness,
as other nations capitalise on technological advancements for economic growth and innovation.
• Cyber-attacks targeting essential services such as healthcare, utilities, and transportation could lead to
disruptions with far-reaching consequences, including loss of life, economic instability, and social unrest.
• Failure to address cybersecurity vulnerabilities can result in significant data breaches, financial losses,
damage to reputation, and erosion of public trust in institutions and businesses.
• Costs associated with mitigating cyber threats, recovering from cyber-attacks, and addressing disruptions to
IT continuity can impose a significant financial burden on businesses, Government agencies, and the entire
economy, potentially hampering growth and development efforts.
• Failure to establish robust regulatory frameworks and cybersecurity measures could compromise SA's digital
sovereignty, leaving it vulnerable to external influence or control over critical infrastructure and data.
• The use of AI and big data can lead to potential infringements on privacy and civil liberties
• Increasingly capable AI systems may replace human jobs, causing instability, social unrest, and unemployment.
Unlike previous technological shifts, where intellectual labour replaced physical labour, AI’s impact on
employment is uncertain, (e.g. advanced blockchain technology may remove the need for intermediaries like
banks in financial transactions).
• Without proper access and education, AI technologies may remain accessible only to the privileged, or its
benefits may be distributed unequally, exacerbating the digital divide and socio-economic disparities.
• AI’s decision-making in financial markets could introduce volatility, unpredictability, and unintended
consequences.
• If a balance between innovation and responsible use is not found, development of AI-powered autonomous
weapons raises ethical and safety concerns.
• Deepfakes (convincing synthetic images, audio, and videos to mislead or deceive), misinformation (false
information spread unintentionally) and disinformation (intentionally deceptive information). Biased AI data
models, causing algorithmic responses and decisions leading to the spread of fake news, or fraud perpetration.
• Theoretically, self-aware AI could act in ways harmful to humanity, requiring robust safeguards against such
scenarios.

Risk Impact on Economic Sectors

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