IRMSA Risk Report – South Africa Risks 2021
There is no doubt that 2020 will go down as a year to be remembered. While the Covid-19 pandemic has had an enormous impact,
the year brought many challenges, from the forest fires in Australia at the beginning of the year to the volcano eruption in the Philippines, followed by a long list of hurricanes and widespread social unrest in the US. All of these have highlighted the reality of
persistent and disruptive volatility. There is no reason to think that volatility will decrease - in fact, it is only likely to increase.
James Lane Allen said, “Adversity does not build character, it reveals it”. The adversity we are operating under is continuing to reveal
the importance of risk management and business resilience. It has changed the way we are, the way we work, the way we think
and the way we act. It has accelerated innovation and digitalisation, and created an imperative for companies to transform their
operations. It’s no longer the big fish eating the small – it’s the fast fish eating the slow fish (World Economic Forum). It’s now about
agility and how quickly we respond to changes, and the making of better-informed, faster decisions to survive in a rapidly changing
environment.
IRMSA Risk Report – South Africa Risks 2020
At this stage in our country’s history, risk management has never been more important. Already, many risks have materialised but in their wake a whole new set of risks have emerged. We, as a nation, as organisations and as individuals must identify these risks clearly, and put the necessary strategies in place to mitigate them.
This was the overall theme of the address to the IRMSA Risk Conference in October 2019 by Chief Justice Mogoeng Mogoeng.
He said that we need “to prevent new risks from emerging while we manage those that already exist – with a view to reduce them or minimise them and to hopefully eliminate or leverage them in the long run.”
The Chief Justice set the context by correctly noting that our approach to risk must be informed by the shared national vision embodied in our Constitution. He emphasised that this vision incorporates the fact that there were injustices in the past, and that they need to be redressed or they will continue to constitute risks to our democracy and erode the social capital on which every nation depends:
What is it that we are called upon to do as individuals and as the citizenry of South Africa? How will we make sure that those injustices of the past do not continue to pose the risk they posed in the past? How do we eliminate them so that we can become the stable, peaceful and prosperous nation that we all desire to be?
IRMSA Risk Report – South Africa Risks 2019
Risk managers are in a unique position to connect the proverbial dots – finding the linkages and trends in information, vertically and horizontally, from a number of different planes that enables you to navigate the level and pace of complexity of what we are going through in the world and certainly in South Africa.
We live in a complex world with high levels of uncertainty and constant change. The scale and pace of global and domestic change profoundly influence the nature and dynamics of our politics: either in the manner in which certain disputes will be resolved expeditiously and or in how new obstinate problems are actually created.
IRMSA Risk Report – South Africa Risks 2018
The Institute of Risk Management South Africa (IRMSA) publishes an annual risk report, but the 2018 edition specifically focused on "Future" risks, which was a report on longevity risk and opportunity and the need for continuous learning due to the 4th Industrial Revolution. The IRMSA Risk Report series uses risk-based scenarios to explore the future, with the 2018 edition considering risks related to intergenerational living and the need to adapt to a changing job market.
IRMSA Risk Report – South Africa Risks 2017
The third edition of the IRMSA South Africa Risks Report is presented at a time of profound change. The populist anti-globalization wave that produced majority votes for Donald Trump in the United States and for Brexit in the United Kingdom is the consequence of the “anti-establishment” flag that has been raising its head around the world. This flag has been discussed by Clem Sunter and Dr Chantell Ilbury at the IRMSA Risk Report launches over the past two years and represents the growing lack of faith in professional politicians in America, Britain, Europe, Australia and many other countries. Trends and events of this nature remind us that South Africa and organisations operating within its borders are exposed to a myriad of external threats and opportunities, beyond those that are solely internally driven. South Africa’s risk landscape has been equally, or perhaps even more, volatile than the global environment during 2016.
IRMSA Risk Report – South Africa Risks 2016
The second edition of the IRMSA South Africa Risks Report is presented during a volatile period in the country’s development, highlighted by Fitch, Standard & Poor’s and Moody’s all lowering their outlook on South Africa’s credit rating to essentially one notch above junk status in December 2015, the rand trading at its worst-ever levels against the pound and the dollar in nominal terms in the same month, Pravin Gordhan being named the third finance minister in less than a week, and widespread public protests. These and other events are occurring as South Africa grapples with the worst drought to hit the country in decades.
IRMSA Risk Report – South Africa Risks 2015
The first annual Institute of Risk Management South Africa’s (IRMSA) South Africa Risks Report 2015 has been compiled within a specific context – that of a country still reeling from political and economic turmoil.
The Association of Mineworkers and Construction Union (AMCU) on 29 July 2014 announced the end of a 5-month platinum sector strike by 80,000 workers which resulted in a fall of nearly 25% in mining production. South Africa’s credit rating was downgraded by Standard & Poor’s (S&P) and Moody’s. The country’s outlook was shifted from stable to negative by Fitch Ratings, meaning that the country is a single notch away from junk status. The South African government continued to experience difficulties to meet the expectations of the population in terms of the fight against unemployment, poverty and corruption, potentially giving rise to increased social instability. The International Monetary Fund (IMF) slashed its economic growth forecast for South Africa by 0,3 percentage points to only 1,4% for 2014 and by 0,4 percentage points to 2,3% for 2015, suggesting that the sustainability of the country’s economy is under severe pressure.
Directive in respect of Cybersecurity and Cyber-resilience within the National Payment System
In terms of section 10(1)(c) of the South African Reserve Bank Act 90 of 1989, as amended (SARB Act), the South African Reserve Bank (SARB) is required to perform such functions, implement such rules and procedures, and, in general, take such steps as may be necessary to establish, conduct, monitor, regulate and supervise payment, clearing and settlement systems.
Furthermore, the NPS Act provides for the management, administration, operation, regulation and supervision of payment, clearing and settlement systems in the Republic of South Africa, and for connected matters. The power to perform the functions as provided in the SARB Act and the NPS Act is performed by the National Payment System Department (NPSD) within the SARB. The SARB plays an important role in ensuring the safety, efficiency and resiliency of the national payment system (NPS).
Standard for Change Management and ACMP® Change Management Code of Ethics
Change is constant, but how we manage it evolves. Since its inception, the ACMP® Standard for Change Management© has been a trusted resource, guiding professionals worldwide in leading successful change. First published in 2014, the Standard was the result of a rigorous, collaborative effort that brought together over 1,100 change professionals from 57 countries, ensuring a methodology-neutral, globally relevant framework.
Cyber Risk in Central Banking (BIS)
The rising number of cyber attacks in the financial sector poses a threat to financial stability and makes cyber risk a key concern for policy makers. This paper presents the results of a survey among members of the Global Cyber Resilience Group on cyber risk and its challenges for central banks. The survey reveals that central banks have notably increased their cyber security-related investments since 2020, giving technical security control and resiliency priority. Central banks see phishing and social engineering as the most common methods of attack, and the potential losses from a systemically relevant cyber attack are deemed to be large, especially if the target is a big tech providing critical cloud infrastructures. Generally, respondents judge the preparedness of the financial sector for cyber attacks to be inadequate. While central banks in most emerging market economies provide a framework for the collection of information on cyber attacks on financial institutions, less than half of those in advanced economies do. Cooperation among public authorities, especially in the international context, could improve central banks’ ability to respond to cyber attacks.