Is it really only June?

It’s only June but it feels like we have already had a year’s worth of 2019. The worst-ever year for cyclones hitting the east coast was probably not a good way to start. Combine that with elections in two of the continent’s leading economies – Nigeria and South Africa – and with global politics continuing to impact the region, it is no wonder it feels like 2019 should almost be done with. No matter who you talk to, there is a common complaint about being time-poor. For risk managers, it is about trying to keep abreast of all the global events that might impact their business today, manage the known risks internally and then, to cap it all, keep an eye on the long-term challenges of sustainability and coping with climate change and whatever that might bring. Speaking to risk managers across the continent as part of our annual survey, their top risk is harder to gauge this year, as risk managers cite myriad risks at the top of their concerns, with little in the way of solutions. Political risk remains close to the top for the majority – no surprise after both the Nigerian and South African elections returned the incumbent Presidents but with no great enthusiasm in either country. However, the risk list is becoming increasingly jumbled beyond that; and the insurance markets are being asked to help in new ways. Climate change is probably one of the most difficult challenges. After years of climate scientists appearing to be lone voices in the wilderness, there seems general acceptance that the planet will suffer negative effects from climate change. And Africa looks set to be one of the hardest-hit regions, despite being less responsible for the pollution and less able to cope financially. But risk managers say they are fed up of being the ‘no’ people and are looking for opportunities too. The drought in Cape Town was an example of where risk management played a crucial role and helped keep a city in water. It might have been made three times worse by the human element, as Professor Mark New outlined on p12, but there was also a human solution that was properly risk managed, executed and delivered. People learned to change their behaviour and now the city hopes it will be in a better position through the next dry spell. It has provided a lesson for many other parts of Africa as they look to drive the sustainability agenda forward. It will also be extremely interesting to follow the story of a group of leading Nigerian insurers who have agreed to engage with local government authorities in Lagos to explore the development of a “city sustainable insurance roadmap” – a strategy and action plan to help Lagos become resilient and sustainable. This could become a global template – another example of where Africa leads the way. Africa cannot afford to sit back and become a victim of climate change. As the UN secretary-general said, the work of the United Nations – in peace and security, in human rights, in development, in relation to climate change – can only succeed in the world if it succeeds in Africa. In the meantime, the broader sustainability agenda, encompassing environmental, social and governance, is also increasingly important. Risk managers are having to consider so many pressing risks. The recent case of Monsanto in the US provides an example of the way things can unravel, as we explore on p8. Bayer bought the company last year but now faces thousands of claims in the US alone for the allegedly harmful effects of one of Monsanto’s products, Roundup. This case not only involves product liability issues, but raises questions about M&A due diligence and directors’ responsibilities. Bayer will be appealing the latest ruling, but the case serves as a timely reminder to risk managers of how important it is for business leaders to keep all the balls in the air and how risk managers can help.

Is it really only June?

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