Averting a perpetual hangover in South Africa

Averting a perpetual hangover in South Africa

Risk managers in South Africa are calling for a unified response to the country’s problems to cure what they call the perpetual hangover that has threatened the region. In its report South Africa Risks 2020, the Institute of Risk Management South Africa (IRMSA) has said: “From our analysis, all the risks we face as a…

Risk managers in South Africa are calling for a unified response to the country’s problems to cure what they call the perpetual hangover that has threatened the region.

In its report South Africa Risks 2020, the Institute of Risk Management South Africa (IRMSA) has said: “From our analysis, all the risks we face as a country will lead to the realisation of our worst-case scenario, perpetual hangover, if not dealt with decisively. There is significant work to do to manage our overall country risk profile to a more acceptable level and achieve ‘Spring of hope’.”

Possible outcomes

The report suggests three possible outcomes for the country:

Perpetual hangover: Current trends of short-termism and social bankruptcy grow, with increasing distance between different groupings in society. There is an inability to counter the elements of populism, racial polarisation, and short sighted economic policies originating from some sections of our society. These trends could lead to the “ultimate implosion of the state”.

Fake it until we make it, or not: The country accepts the perpetual hangover trends, but is neither prepared nor desperate enough to make the tough calls needed to turn the country around.

Spring of hope: People take individual and collective charge of their future and firmly work to eliminate any “noise” in the system that detracts from a common purpose. Although not all elements of society are in complete agreement, they work to build a consensus to drive a resilient society.

Longer-term view

“The report highlights possible scenarios, not to overwhelm us or create paralysis and a sense of doom, but to create possible futures that we can all work towards whilst acknowledging the consequences of past decisions or lack of decisions,” IRMSA president Berenice Francis said in the report. “The role of risk managers is to assist organisations in seeing a longer-term view, seeing possibilities, giving much needed time to proactively craft and implement solutions.”

As well as providing in-depth scenario analysis and proposed solutions, the 122-page report also examines the potential role of risk managers in each. Download for free here.





← Previous

Firms and auditors face a climate reporting shakeup
Firms and auditors face a climate reporting shakeup as the industry regulator the Financial Reporting…






Next →

Data breach fines grow
Data breach fines have grown since the General Data Protection Regulation (GDPR) came into force,…

7 OCTOBER 2026

Key elements of a mature programme risk capability

Hosted by Vinay Shrivastava. Vinay's presentation will cover lessons he has learned over the course of his career. These insights will be shared using the principles of ISO31000 risk management.

Find out more

8 OCTOBER 2026

Pre-deployment agentic risk management

Delivered by Adam Grainger, the outcome of this session is to be able to support an agentic implementation with effective pre-deployment risk identification and mitigation.

Find out more

14 OCTOBER 2026

AI Transforming Enterprise Risk Management Activities

Risk management has changed considerably over the years, with new frameworks, standards and expectations shaping the way organisations manage risk. However, many of the day-to-day activities within Enterprise Risk Management (ERM) functions have remained much the same.

Find out more

Advertisement