Tag: RiskManagement

South African businesses do not need to look far for a cautionary tale. The fallout from the Steinhoff scandal continues to reveal how weak governance, inadequate scrutiny of business relationships and unchecked transactions can destroy billions in shareholder value. What began as aggressive growth ultimately became one of the country’s most expensive lessons on the cost of insufficient oversight.

The Plaintiffs operated restaurant businesses and appointed the defendant as their insurance broker. The defendant's mandate required it to procure commercial insurance on the Plaintiffs' behalf. On 4 June 2019, the defendant obtained policies from Renasa Insurance Company Ltd. However, these policies did not include an extended business interruption clause covering losses arising from infectious disease outbreaks.

The shift from Johannesburg Interbank Average Rate (JIBAR) to South African Rand Overnight Index Average (ZARONIA) marks a turning point in South Africa's financial landscape. It forms part of a global movement toward more reliable and transparent interest rate benchmarks. However, for businesses, it represents far more than a regulatory change.

Artificial Intelligence (AI) is rapidly moving from experimentation to execution within South African organisations. Organisations increasingly embed AI agents across business functions, including finance, customer service, IT and operations. However, a significant governance concern is emerging.

Investors have a limited edge in predicting geopolitical outcomes. Our value-add lies in assessing the relative economic exposure of different countries. It also lies in judging what the market has priced into different sectors and determining how to allocate risk accordingly within a geopolitical risk investment strategy.

South African bond markets rewarded fixed-income investors with exceptional calendar-year returns in both 2024 and 2025. The All Bond Index (ALBI) returned 17% and 24%, respectively. These returns significantly exceed the norm. Therefore, we anticipated moderating performance in 2026.

Most South Africans are not gambling more because times are good. Instead, they are gambling more because money is tight. South Africa’s gambling industry generated a record R75 billion in gross gambling revenue during 2024/25. At the same time, the betting segment alone grew sharply from R8.8 billion in 2019/20 to R23.7 billion by 2022/23.

Environmental, Social and Governance (ESG) discussions in South African boards generally default to carbon, community impact and governance process. While those remain essential, they do not tell the full story of organisational sustainability. A business may define sustainability narrowly. However, it still fails if it cannot protect data and recover quickly from cyber disruption in a digital economy.

Most of us do not think we need protection. However, life often proves otherwise. It is easy to dismiss a cover you have never used. That changes quickly in real life. Your phone slips from your hand. It cracks on the kitchen floor. Your geyser bursts without warning. Your car also breaks down after running perfectly the week before.

The Chief Financial Officer (CFO) role has moved decisively beyond compliance. In a volatile, data-driven economy, finance leaders must now shape strategy, guide decisions and help businesses respond to disruption in real time. The shift is clear. CFOs no longer only report numbers. Instead, they interpret them and explain what could happen next.