Extreme weather tops the Africa risk list

Cybersecurity, geopolitics and financial market fluctuations are among the chief concerns for business voiced by some leading risk experts as they look ahead to 2019, while in Africa the top risks remain extreme weather events, political and reputational risks. At the start of the year, senior members of the Institute of Risk Management (IRM) were asked to identify key risk areas for businesses for the year ahead. A broad range of financial, political and healthcare risks were highlighted. Many of these align with risks identified in the Global Risks Report 2019 by the World Economic Forum. Further areas of risk concern identified by IRM risk experts were the as-yet unknown effects of Brexit in the UK and the impact of technology-enabled disruptive business models. IRM chairman Socrates Coudounaris stressed: “Leaders who think critically about the future, anticipate disruption to their sectors, while building resilience and agility in their models, will be in a better position to tackle a challenging risk environment in 2019 and thrive.” Turning to Africa, Zanele Makhubo, CFIRM, director enterprise risk management and business continuity in public sector, and chair of the South Africa IRM regional group, said the unpredictability of weather patterns due to climate change poses a serious risk across the globe. “In South Africa we are currently experiencing an extreme heatwave, which is accompanied by heavy thunderstorms,” she said. “There is a risk of potential tropical cyclones. To mitigate the risk of severe damage to human and animal life, disaster risk assessment and scenario planning needs to be conducted to inform the resilience strategies. “This will require a multidiscipline approach of disaster management competencies that are smoothly coordinated across the spheres of government and the private sector. Investment in new technology and disaster risk management resources is critical to keep up with the forever-changing climate.” With South Africa facing elections this year, she said: “The conscience of political leadership is tested in relation to individual integrity and ethical behaviour. Our society needs leaders who are not easily influenced by corrupt activities. “We are going into elections in May 2019 and society at large is demanding highly principled leaders that will uphold the rule of law to the highest standard, and a leadership that understands the collective and consultative decision-making process for the benefit of the country in all respects.” This, in turn affects reputations, she said, explaining: “Both government and business must understand the value of a good, reputable organisation. And they must understand that coming from the recent past of state capture and corporate scandals, their governance structures need to adhere to the rules of the country in conducting business locally and globally. “Organisational values must not only be on paper but be included and embedded into the ways in which the whole of the businesses activities are conducted.” Finally, she pointed out that in South Africa, the “land debate will gain momentum as the country goes into election in early 2019 and the crux of the matter is to understand that it is about restoring dignity and equality”, adding: “It is a very sensitive debate and all concerned must treat it with the caution that it deserves.”

Extreme weather tops the Africa risk list

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