BarnOwl Info Sharing Insight: IRMSA South Africa Risk Report 2024/25, 10th Edition with Christelle Marais Director, Lucidum (Pty) Limited, Project Lead for the 10th Edition of the IRMSA South Africa Risk Report 2024/25

Introduction

Thank you very much Christelle for your excellent presentation on ‘IRMSA South African Risk Report 2024/25)’ at the BarnOwl info-sharing event held on 26th September 2024. Thank you to all those who attended the session.

The annual IRMSA risk report has for many years identified the same or similar risks year on year. Sadly, almost all of the top risks have deteriorated over the past 10 years.

We needed a change of direction to avert a ‘failed state’ and the elections at the end of May 2024 brought one by ushering in a new Government of National Unity (GNU), which has injected much-needed confidence into the country.

The 2024/2025 risk report was drafted before the election (May 2024), however Christelle’s presentation highlights how some of the key risks have already improved and / or are predicted to improve with the GNU in place. See FIG 1a and FIG 1b.

The following are a few key topics which I identified from Christelle’s presentation, which if we embrace, could give us a winning chance:

Skills: Skills and education are pivotal in building a successful country and economy. This goes hand in hand with appointing competent people based on merit to operate and lead companies and institutions. We have some brilliant skills in South Africa and should do everything we can to hold onto these skills; especially the youth. See FIG 2a and FIG 2b.

Economy: We require business friendly policies to encourage business and entrepreneurs to invest and succeed. By growing the economy, we will alleviate one of our biggest risks being unemployment, which, if not checked, could lead to further social unrest. In addition, growing the economy and reducing unemployment will mean more tax to invest in social programmes and help with the upliftment of poorer communities. An interesting fact is that South Africa has the 7th largest GDP (Gross Domestic Product) per capita in Africa. See FIG 3a. Sadly, whilst South Africa remains one of the wealthiest countries in Africa per capita, our GDP per capita has dropped over the past 15 years. See FIG 3b.

Technology: The rapid advancement of Artificial Intelligence (AI) and Disruptive Technologies can lead to significant economic and social changes. These technologies will continue to revolutionise industries, automate jobs, and alter the way we live and work. The upside is that the advancement of AI and robotics promises a better world for all, with huge potential for improving living standards, food security, medicine, service delivery, clean energy, etc. On the other hand, they also pose risks such as increased susceptibility to Cyber Attacks and the need for robust IT continuity plans. The challenge lies in harnessing the benefits of these technologies while mitigating the related risks. See FIG 4.

FIG 1a: Risk themes by year

The ushering in of the GNU has given us renewed hope and injected much-needed confidence in the country, borne out by positive changes in some of our key risks.

FIG 1b: Medium term strategic framework (MTSF) and medium term development plan (MTDP)

Whilst South Africa has great plans, these plans need to be implemented. For implementation to happen, we need competent leadership, willing people and a conducive environment. Hence the call to action: ‘lead-where-you-are’

FIG 2a: Key drivers required to give us a winning chance

Skills and education are key drivers in navigating and succeeding in a modern and competitive world.

FIG 2b: Leaders need to equip themselves to lead.

We have some brilliant skills in South Africa and should do everything we can to hold onto these skills; especially the youth.

FIG 3a: South Africa remains one of the wealthiest countries in Africa per capita

Source: https://www.statista.com/statistics/1121014/gdp-per-capita-of-african-countries/

FIG 3b: South Africa GDP per capita has been dropping over the years

Source: https://www.macrotrends.net/global-metrics/countries/ZAF/south-africa/gdp-growth-rate

The only way to alleviate ‘getting poorer’ is to grow the economy supported by investor / business friendly policies. We need a conducive environment for entrepreneurs to build new companies, which will result in real economic growth.

FIG 4: Technology

The advancement of AI and robotics promises a better world for all, with huge potential for improving living standards, food security, medicine, service delivery, clean energy, etc. On the other hand, they also pose risks such as increased susceptibility to Cyber Attacks and the need for robust IT continuity plans. The challenge lies in harnessing the benefits of these technologies while mitigating their potential risks.

Conclusion

Whilst South Africa has great plans, these plans need to be implemented. For implementation to happen, we need competent leadership, willing people and a conducive environment. Hence the call to action: ‘lead-where-you-are’.

The ushering in of the GNU has given us renewed hope and injected much-needed confidence into the country, borne out by positive changes in some of our key risks.

Skills and education are key drivers in navigating and succeeding in a modern and competitive world. We have some brilliant skills in South Africa and should do everything we can to hold onto these skills; especially the youth.

The only way to alleviate ‘getting poorer’ is to grow the economy supported by investor / business friendly policies. We need a conducive environment for entrepreneurs to build new companies, which will result in real economic growth.

The advancement of AI and robotics promises a better world for all, with huge potential for improving living standards, food security, medicine, service delivery, clean energy etc. On the other hand, they also pose risks such as increased susceptibility to Cyber Attacks and the need for robust IT continuity plans. The challenge lies in harnessing the benefits of these technologies while mitigating the related risks.

Presentation and video links

Please see attached presentation here, and the info sharing recording here.

Contact us

Cheryl Keller | BarnOwl | cheryl@barnowl.co.za

Christelle Marais| Director | www.lucidum.africa | christelle@lucidum.africa

Thank you

Once again, thank you Christelle for your time and for your informative presentation and thank you to all those who attended our info sharing session. We look forward to seeing you at our next info sharing session. Please keep a look out for our upcoming events at:
http://www.barnowl.co.za/events/

Kind regards
Jonathan Crisp
Director – BarnOwl GRC and Audit software

About BarnOwl:

BarnOwl is a fully integrated governance, risk management, compliance and audit software solution used by over 150 organisations locally and internationally. BarnOwl is a locally developed software solution and is the preferred risk management solution for the South African public sector supporting the National Treasury risk framework.
Please see www.barnowl.co.za for more information.

About the presentation and our guest speaker

Christelle Marais, the Project Lead for the 10th Edition of the IRMSA South Africa Risk Report 2024/25 will unpack the key message not only for risk managers, but for every South African who wishes to grow old in this country and to leave it intact for their children. The Risk Report tells a Tale of Two Cities (refer Charles Darwin’s book of the same title): In the One City, a smaller portion of society feels empowered and excited about the unfolding future, gathering pace on the wings of the ongoing technological revolution and new political possibilities. Yet in Another City, a larger portion of our nation remains excluded from the benefits of democracy and a more equalitarian world. The unprecedented results of the 2024 elections require individual citizens, political parties, the State, and corporates to create a future that will serve the interests of our entire nation.
 
A decade of Risk Reports shows that while we understand our risks and interpret them well, our urgent challenge is to respond to them appropriately. To overcome this, we must constantly build consensus and coordinated policy solutions. These solutions must be implemented promptly, consistently, and constantly to build public trust in the State and the economy. In challenging environments like South Africa, where inequality, poverty, and crime confront us every day, we cannot afford to be nonchalant; nor can we remain passive spectators. Now is the time for risk managers and all 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 Report outlines the kind of action and engagement that will turn passive spectators into active participants. It emphasises vision, imagination, and action, and it presents information about our possible futures from different lenses (risk, economy, and geography) with suggestions to inspire proactive solutions rather than induce paralysis. As our risks have become more critical, action is needed. 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 future.
 
“In all scenarios, two key elements stand out: skilled resources and servant leadership. Both are available, but neither are activated in the collective interest of our country. We had to ask: ‘What must change?’ If nothing changes, despair may take us further into a future where ‘everyone is in it for themselves’. Considering the dominant culture driving each scenario, successfully mitigating all risks, across all economic sectors, across all geographical intersections, depends on a national culture change. Positive indications are that South Africa will stop asking ‘will the real leaders please stand up?’ as ‘some young leaders are taking charge’. It is our sincere hope that this will ignite a groundswell to a culture where ‘everyone is leading from where they stand’.” – IRMSA 2024/25 South Africa Risk Report (Executive Summary)

Info Sharing Guest Speaker

Biography 


Christelle Marais
Christelle has worked at SAFCOL, Amathole Forestry Company, Kathu Solar Community Trust, National Department of Science & Innovation, Institute of Risk Management South Africa, Marsh Africa, SASOL, SA Post Office and various clients across Africa in governance, company secretarial services, risk management, ethics, compliance, business continuity, risk financing, insurance, sustainability, ESG, climate change, health and safety, security, asset and liability management, litigation, and economic crime.
 
Her experience includes financial services, manufacturing, healthcare, logistics, retail, agriculture, forestry, energy, mining, education, public sector, and non-profit entities. She has served at subsidiary, joint venture and group levels and has been co-opted for major change projects.
 
Her focus is to enable Boards (and Audit, Risk, Social & Ethics Committees) and EXCOs to govern and risk and make informed decisions. She develops governance and risk management frameworks (policy, strategy, standards, and maturity models) and serves as independent board (governing body) and committee member.