Rand Water | Integrated Annual Report 2025

Risk

Description

1. D eteriorating availability, reliability, and quality of electricity

Eskom is our main supplier of electricity, and this risk speaks to its ability to supply Rand Water with reliable and quality electrical supply as and when we require it. The risk refers to the illegal encroachments on Rand Water pipelines, servitudes and properties which expose the encroachers to potential water pipe bursts that may ultimately lead to possible loss of life. The risk refers to the debt challenges that Rand Water is faced with. Emphasis is on an anticipated increase in our debtors defaulting due to the social economic conditions within the country.

2. E ncroachment over pipeline, servitudes and properties

3. I ncreasing credit risk

exposure resulting from non-paying customers

4. D elays in infrastructure project implementation and completion

The risk refers to the organisation’s ability to plan, implement and complete projects that will meet the desired quality and integrity.

5. The unsustainability of the supply of potable water

The risk refers to the sustainability and security of the water resources to be able to provide potable water to all our customers.

6. Cyberattacks

This risk refers to the impact of potential and actual cyberattacks.

7. U npredictable weather patterns and extreme events

The risk refers to the impact of climate change on the future sustainability of the organisation.

8. White Collar Crime

This risk refers to non-violent and financially motivated crimes.

The risk refers to the threat to the safety and security of critical Rand Water Assets such as our water purification plants (sites), pipelines and reservoirs. This risk refers to the potential negative impact on the organisation due to issues related to the physical, mental or emotional wellbeing of employees.

9. Threat to critical Rand Water assets

10. E mployee health and wellness

Figure 2: Top 10 Strategic Risks

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Rand Water | Integrated Annual Report 2025