Tag: RiskManagement

Enterprise software used to be a decision within the IT lifecycle. However, it is no longer just that. Core platforms such as ERP systems, databases and virtualisation have become embedded in how organisations recognise revenue, control costs and satisfy regulators. These platforms are not back-office systems. They are financial infrastructure. Increasingly, they are dictating capital allocation in ways many CFOs did not sign up for.

Cyber risk is no longer a peripheral IT issue in African supply chains. Instead, it is becoming a core operational threat. According to the Association of Chartered Certified Accountants (ACCA), 70% of organisations report experiencing fraud or economic crime. Cyber-enabled fraud ranks among the fastest-growing categories globally, according to the ACCA Global Economic Crime and Fraud Survey.

South African businesses have evolved alongside the reality of the country’s physical infrastructure challenges. Organisations instinctively build redundancies for power. These include solar installations, battery backup solutions, UPS systems and generators. When the grid fails, the failover system kicks in. Similarly, most businesses have multiple connectivity failovers because they understand operational disruption intimately.

Leaders are expected to plan for the future, whether they operate in big business, small business, government or good-deed organisations. And they do. Leaders collate data across all aspects of operations. They compare budgets with actuals. They also make projections for the next six months to five years.  Leaders build detailed quantitative models and dashboards. Some projections include both positive and negative outcomes.

For years, banks have modernised around channels. Mobile apps have improved. Onboarding has become faster. Customer engagement has also become more personalised. These improvements matter because customers experience them daily. However, a more difficult shift is now underway.

South African regulators introduced a more structured approach to climate-related disclosure for insurers. Since then, expectations have tightened to mirror approaches in other markets. Regulators now treat these risks as having direct financial consequences for the sector.

When two architects design the same house independently, they do not create a stronger house. Instead, they create misaligned foundations. Every now and then, a client tells me they use two financial advisers. The explanation is almost always the same. They value a variety of opinions and feel more comfortable knowing multiple professionals oversee their wealth.

Investors often turn to alternative investments. They seek something that listed markets cannot always provide. For instance, they want a different return profile. They also want less exposure to daily market sentiment. In addition, they want better portfolio risk management when conditions become more volatile.

The enterprise Goliath is worried about its suppliers. These Small and Medium-sized Enterprises (SMEs) are underprepared. They are also disproportionately targeted. In fact, 43% of cyber-attacks target their digital front door. In addition, the Protection of Personal Information Act (POPIA) holds large organisations legally responsible when a supplier is breached.

Today’s business environment is no longer defined by a single shock but by overlapping geopolitical and economic disruptions reshaping the macroeconomic landscape. Businesses are operating amid a polycrisis, where conflict, trade tensions, inflationary pressure and supply chain instability continue to reinforce uncertainty.