Key risks in 2022/23, treatment, opportunities, trend,
and outlook
Low Risk
Medium risk
High risk
Risk is increasing
Risk is reducing
Risk is stable
Risks driven by local factors
6. Compliance and Litigation risk
2021/22
2022/23
Trend
Description of risk and the Fund’s response
Litigation is one of the key risks that the Fund is exposed to from time to time.
Litigation exposes the Fund to financial loss and reputation damage.
The Fund regularly sensitises its employees on laws and regulation, especially those that relate to employee relations and contract management, to avoid breach, which can result in litigations.
Opportunities
The Fund’s image improves and stands to gain financially in cases it wins in courts of law and protects its image if it prevents litigation.
Outlook
Litigations are likely to increase due to the increased mandate of the Fund. However, the Fund will take steps to identify potential litigations and proactively address them.
Capital Impacted
Stakeholders Impacted
Material Matters
Strategic Objectives Impacted
7. Technology failure and system downtime risk
2021/22
2022/23
Trend
Description of risk and the Fund’s response
High dependence on technology to deliver services increases the risk of technology failure, which affects service delivery and leads to customer dissatisfaction.
System uptime and functionality are key performance measures and are monitored on a regular basis.
Opportunities
Technology is an enabler for efficient and convenient service delivery, which can give an organisation a competitive edge.
Outlook
NSSF will continue the trend of innovation and systems will be tested and scenario analysis conducted to prevent technology failure.
Capital Impacted
Stakeholders Impacted
Material Matters
Strategic Objectives Impacted
8. Financial crime risk
2021/22
2022/23
Trend
Description of risk and the Fund’s response
No major incidents of financial impropriety were reported in the financial year.
The Fund maintained and enhanced internal controls to prevent and/or detect potential financial crimes.
Opportunities
The possibility of an escalation in financial crime gives us an opportunity to further strengthen our controls.
Outlook
Financial crimes, especially fraud in benefit payments, is likely to increase due to increased NSSF coverage.
Capital Impacted
Stakeholders Impacted
Material Matters
Strategic Objectives Impacted
9. Limited product range
2021/22
2022/23
Trend
Description of risk and the Fund’s response
Limited product range, in terms of benefits to members, is still a big challenge for the Fund. Current products do not cater for the short-term and medium term needs of members.
The Fund is in the final stages of obtaining approval for new products, especially in the voluntary space.
Opportunities
New products are likely to increase membership, as NSSF strives to increase social security coverage, especially in the informal sector.
Outlook
The Fund will roll out a number of products in the short and medium term, which will address the current challenge of a limited product range.
Capital Impacted
Stakeholders Impacted
Material Matters
Strategic Objectives Impacted
10. Taxation Risk
2021/22
2022/23
Trend
Description of risk and the Fund’s response
Changes in tax rates or introduction of new taxes, especially on investments, affect the return we declare to our members. However, no new taxes were introduced by government according to the 2022/23 national budget.
To minimise the impact of taxation, we undertake tax planning to take advantage of the opportunities within the tax laws.
Opportunities
With careful tax planning, tax avoidance opportunities can be identified and exploited.
Outlook
The tax landscape may undergo changes, resulting in the introduction of new taxes and/or increase in the existing tax rates.
Capital Impacted
Stakeholders Impacted
Material Matters
Strategic Objectives Impacted