Part 3 Predictions, threats & opportunities ‘Between the Lines’

Last week Econorisk partnered with wealth management specialists, Citadel in Johannesburg to host the April #RiskSeries. Econorisk CEO, Guy Scott put the meeting into context by saying that in an often volatile, uncertain, challenging and ambiguous world, we need to draw on insights from around us in order to make informed decisions regarding risk on a business and a personal front. Politico-economic trend analyst, JP Landman and Citadel’s Head of Fund Research and Portfolio Manager, Yolanda Naudé considered the threats and opportunities facing global and local economies. In this conclusive part 3, our guest speakers gave food for thought.

Between the lines

Yolanda Naudé brought attention to a recent World Bank Report on poverty and inequality in South Africa, which confirmed the alarming fact that inequality has increased in this country since the end of apartheid in 1994 and that SA is still one of the most unequal countries in the world. 40% of our population still survives on less than +/- R800 per person per month. Accelerating the reduction of poverty and inequality will require unlocking the full potential of labour markets and promoting inclusive growth through skills creation. Business plays a major role in addressing inequality and will continue to have positive and significant impact.

However, JP Landman pointed out that one of SA’s biggest threats to success is our own lens of pessimism. South Africa currently ranks No 1 out of 38 countries on the misperceptions index. We are the least accurate people in the world when it comes to perceptions about our own country. There are no illusions as to why we may tend as South Africans to view things with less than rose tinted glasses – it has been an uncomfortable journey. But there is no doubt that we are pushing ahead in an open society to build an economy that will improve with a more capable, committed and credible government. Optimism is essential “It’s all very good for modernity – the real end game to South Africa’s success,” says Landman.

Last word

This collaboration was a first for Econorisk and Citadel. While both businesses operate at different spectrums of risk, hosting the event together was valuable to shared clients.  While there is never going to be a crystal ball in business, fortunately we don’t need to be fortune tellers to know that strategic, risk assessed, calculated forecasting means the difference between a reactive vs. proactive approach to the future.

Clients increasingly turn to Econorisk for assistance with the development of prudent and cost-effective risk management programmes.  Such initiatives are rightly regarded as a key component of sustainable business practice in an ever-changing market.

A sound risk management programme:

  • provides a platform for sound corporate governance (King 3 report – risk management)
  • enhances future insurability and reduces insurance expenditure in the longer term
  • maintains a focus on key risk exposures at operational and strategic levels
  • reduces the susceptibility to catastrophe risk exposures
  • instills business confidence among customers and stakeholders

Being in business requires an insight into the future.  Econorisk helps clients to structure a clearly defined risk management programme with the objective of identifying, addressing and reducing risk.

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