Tag: risk management

In George, thirty-four people died when a partially completed five storey residential building collapsed. This event is tragic, and albeit the worst building disaster in South Africa, is by no means an isolated incident of professional incompetence.

As Artificial Intelligence (AI) technology continues to evolve globally, its integration into the South African business landscape is becoming increasingly prominent. Companies across various sectors are leveraging AI to drive efficiencies, optimise operations, and create new revenue streams.

The agriculture sector is vital for economic growth. It contributes 3% to GDP, supports 941,000 jobs, and generated US$13.2 billion in export revenue in 2023 – South Africa produces 10% of the global citrus production. But climate-induced changing weather patterns threaten the outlook for certain crop yields in 2024.

The tragic collapse of an apartment building in George earlier this year, which resulted in the loss of 34 lives, serves as a stark reminder of the critical importance of adhering to best practices in construction to manage risk and ensure compliance.

The South African Reserve Bank (SARB) recently announced the completion of the observation period for the South African Rand Overnight Index Average (ZARONIA). This development marks a pivotal shift in South Africa’s financial landscape, transitioning from the Johannesburg Interbank Average Rate (JIBAR) to ZARONIA as the primary reference rate.

The growing importance of Environmental, Social, and Governance (ESG) criteria is having a significant impact on how building projects are planned, executed, and managed in South Africa. If anything, it is reshaping the construction landscape when it comes to promoting sustainable development and improving social outcomes.

For any business involved in local or global trade, a robust supply chain is key to sustainable success. The simple reality is that trade disruptions come in many forms, from natural disasters and geopolitical crises, to trade conflicts and even pandemics; and in all these scenarios, a strong supply chain is required to keep a business running, avoid losses, and retain its edge over the competition.

Climate change-induced extreme weather events have remained elevated across the globe in the last decade, proving disruptive to both economic and social activities. According to the global reinsurance broker, Aon, the 2023 economic losses due to natural catastrophes was 22% above the 21% century average – raising questions about the long-term affordability and sustainability of cover for vulnerable communities.

The volatility of the South African Rand (ZAR) against the US Dollar (USD) and other major currencies is a trend that is keeping many South Africans up at night. How well the USD performs and how it impacts the value of the ZAR, is greatly impacted by factors such as the US employment figures, inflation rates and gross domestic product (GDP) data, pronouncements by the US Federal Reserve (Fed), and locally, South Africa’s trade balance, GDP, inflation levels, unemployment figures, and guidance from the South African Reserve Bank about monetary policy.

In the intricate practice of risk management, a perplexing paradox unfolds where organisations engage in risk management practices that replicate their previous risk strategies, and still expect a different or improved outcome. Sometimes the cost of consequences is left to chance, perpetuating an 'ostrich effect' where it’s hoped that somehow cutting costs on essential risk management principles will yield viable savings.