South Africa’s Risk Profile Shifting Rapidly, IRMSA Warns in Landmark Report

South Africa is entering a phase of escalating risk, as institutional fragility, governance failures, and energy insecurity increasingly threaten the country’s stability and economic future.

This is the stark warning from the 2025/6 Risk Report released yesterday by the Institute of Risk Management South Africa (IRMSA), calling for decisive leadership and integrated solutions from both public and private sectors.

Now in its 11th edition, the IRMSA Risk Report is a barometer of the nation’s most pressing challenges, and this year paints a sobering picture: South Africa’s progress is being undermined by declining state capacity, regulatory uncertainty, and deteriorating infrastructure particularly in energy and logistics.

“Our latest report reveals a hard truth: we are running out of room to manage risks reactively,” says IRMSA CEO Yvonne Mothibi. “Whether it’s the reliability of our power grid, erosion of trust in institutions, or systemic youth unemployment, we are now at a point where the cumulative risk is exceeding our national resilience.”

Drawing on input from top risk professionals, business leaders, and sector experts, the report ranks energy availability, poor governance, public sector performance, unemployment, and climate instability among the top five risks. Crucially, these are no longer isolated threats they are converging to create cascading impacts across the economy and society.

Mothibi emphasises the urgency of now moving from insight to action. “The private sector must lead where the state is faltering, but we cannot operate in silos. This is a shared risk landscape. The solutions must also be shared, collaborative, and systems oriented.”
The report introduces new risk narratives around geopolitical volatility, cyber vulnerability, and failing municipal governance, while also updating long-standing concerns around inequality, service delivery, and institutional trust.

IRMSA urges leaders to confront not just the visible risks, but also the underlying drivers such as political fragmentation, hollowed-out public institutions, and leadership fatigue.

Why does this report matter to business? Because risk is not just a public sector problem. It’s a business continuity issue. From disrupted supply chains and data breaches to community unrest and investor uncertainty, the private sector is already bearing the cost. This report empowers boards and executives with data-driven foresight to make smarter, more resilient decisions.

The report is also a leadership mirror. It challenges South Africa’s decision-makers to reflect not just on the problems, but on the quality of our collective response.
“Leadership is not just about anticipating risk it’s about owning the response,” said Mothibi. “We can no longer afford complacency or compliance-based risk postures. The stakes are too high. This is the decade of consequence.”

The 2025/6 IRMSA Risk Report is now available online and forms the basis for national conversations on corporate governance, resilience, and inclusive growth. IRMSA urges all stakeholders government, business, and civil society to engage with its findings and collaborate on sustainable risk mitigation strategies.

Click here for IRMSA Risk Report 2025...