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South Africa’s biggest challenge is not an ever-growing list of new risks, but the persistence of old ones that remain unresolved and increasingly reinforce one another, according to the Institute of Risk Management South Africa’s (IRMSA’s) latest report.Reviewing risk trends over the past 12 years, the institute says governance failures, economic instability, infrastructure constraints, unemployment and inequality, and climate-related risks have remained recurring features of the country’s risk landscape. Rather than fading, many have become entrenched, evolving into structural constraints on economic growth, investment and resilience.Unlike previous editions, which focused on identifying and ranking individual risks, the 2026/27 report examines how those risks interact. It argues this creates a cycle that is more difficult to break.Governance and leadership failure tops this year’s rankings, but the report argues it should not be viewed simply as another risk category. Instead, it describes weak governance as the condition through which many of the country’s other challenges are created, amplified or allowed to persist, affecting infrastructure delivery, investor confidence, institutional capability and public trust.Read: JOHN DLUDLU | National dialogue is failing, but South Africa still needs itOther leading systemic risks identified in the report include economic and macroeconomic instability, political instability, infrastructure failure, unemployment and inequality, climate resilience failure, corruption and organised crime, cyber risk and digital disruption, water insecurity and energy constraints.The report argues that global geopolitical tension, economic uncertainty and climate pressures are not creating entirely new risks for South Africa. Rather, they expose and intensify existing domestic weaknesses, making longstanding governance and institutional shortcomings more consequential. IRMSA CEO Yvonne Mothibi said organisations and policymakers needed to move beyond responding to crises individually.“Too often we respond to the visible symptoms of disruption without addressing the underlying systemic causes,” Mothibi said. “Resilience is not built by responding better to crises alone; it is built by strengthening the governance, institutions and leadership that prevent risks from escalating in the first place.”The report says infrastructure should be seen as a driver of economic resilience rather than solely a public service, saying weaknesses in water, transport and digital infrastructure raise the cost of doing business and constrain investment.While highlighting the risks facing the country, the report says they also point to opportunities. Breaking the cycle of recurring risks will require stronger governance, improved institutional capability and faster infrastructure delivery.
