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Socio-Economic

Socio-economic risks are those that have a material impact on the welfare, health, well- being and financial position of an organisation, its employees, customers, citizens or residents in a specific geography or country.

This risk arises from the resulting impact of changes in the socio-economic environment in which the organisation undertakes its business operations. It can also be as a result of regulatory changes.

This risk results in an impact on the operational capability to do business, levels of crime, the strategy of the organisation and ultimately in financial performance and balance sheet.

Socio-economic issues can have a major impact on the operations and financial performance of an organisation and on the people of a country or region. These impacts can be both direct and indirect and happen suddenly or over a period of time.

Socio-economic risk management starts with a review of all the socio-political environments of the countries and markets in which the organisation operates, trades or is reliant on for raw materials, products, supplies or customers.

The management of socio-economic risks will ensure that the organisation is better equipped and in a position to take pro-active decisions to deal with ever-changing economic and socio-political changes in the markets and countries in which they conduct business and operate or rely on.