Transcript Appendix 2.1.1. Sample Slides. Integrated Ass 2.1

Session 1
Legislative Requirements
+
Other Frameworks
Governing Risk Management
Introduction
• Welcome
• Introduction
• Overview
Enterprise Risk Management
Definition
• A systematic, integrated and formalised process to
identify, assesses, manage and monitor risks
throughout the Institution rather than only in selected
business areas or disciplines.
Focus:
• Enterprise-wide or Institution-wide
• Risk management throughout the institution
• Not focused on selected business areas or disciplines
PFMA Requirements for Risk
Management
Risk management contributions:
• Section 38 (a) (i) & Section 51 (a) (i) of the PFMA need for AO& Authorities of department, trading entity
or constitutional institution have and maintain
effective, efficient and transparent systems of financial
and risk management and internal control.
• Section 6 (2) (a) of the PFMA – NT norms and standards
• Chapter 4 and 8 of the PFMA - financial planning,
expenditure and liability management
Intergovernmental Fiscal Relations Act
(No. 97 of 1997)
Risk management contributions:
• Establishment , Functions , Meetings of Local Government
Budget Forum
• Process for revenue-sharing among the spheres of
government
• Revenue-sharing and allocation of money in terms of section
214 of Constitution
• Commission’s recommendations
• Division of Revenue Bill
Intergovernmental Relations Framework Act
(No. 13 of 2005)
Risk management contributions:
• Development of intergovernmental structures such as
President’s Co-ordinating Council, National
intergovernmental forums, Provincial intergovernmental
forums, Municipal intergovernmental forums
• Conduct of intergovernmental relations
• Settlement of intergovernmental disputes
MFMA, 2003
Risk management contributions:
• Section 62 (c) (i) and 95 (c) (i) - municipality has and
maintains effective, efficient and transparent systems
of financial and risk management and internal control.
• Section 20 (1) (iv), (v) and (vi) – NT norms and
standards
• Chapter 4 - municipal budgets
• Chapter 6 – debt
• Chapter 7 & 8 – roles and responsibilities
• Chapter 3 - revenue management
Occupational Health and Safety Act
Risk management contributions:
•
•
•
•
•
•
•
•
Establishment of technical committees of Council-.
Health and safety policy.General duties of employers to their employees-.
General duties of employers and self-employed persons to
persons other than
their employees.General duties of manufacturers and others regarding
articles and
substances for use at work.
Offences, penalties and special orders of court
King Code of Corporate, 2009
• The need to develop, risk management policy, strategy
and plan
• The development of a risk register
• Continuous training and induction on risk governance
• Establishment of risk committees
• Appointment of the office of a Chief Risk Officer
• On-going monitoring of the risk management system
• Structured reporting and communication
• The internal audit function - risk based audits
Batho Pele Principles
Contribution to Risk Management
–
–
–
–
–
–
–
–
Consultation
Setting service standards
Increasing access
Ensuring courtesy
Providing information
Redress
Openness and transparency
Value for money
Public Sector Codes of Conduct
Contribution to Risk Management
•
•
•
•
•
Relationship with the legislature and the executive
Relationship with the Public
Relationship among Employee
Performance of Duties
Personal Conduct and Private Interests
Code of Conduct for Municipal Staff Members
Contribution to Risk Management
• General Conduct
• Commitment to serving the public interest
• Personal gain
• Disclosure of benefits
• Unauthorised disclosure of information
• Undue influence
• Rewards, gifts and favours
• Council property
• Payment of arrears
• Participation in elections
• Sexual harassment
• Reporting duty of staff members
• Breaches of Code
Session 2:
Governance Structure
Risk Management Unit headed by the Chief
Risk Officer
Summary Functions
Facilitating and Coordinating various risk management
activities relating to developing;
• risk management policy
• risk management strategy
• implementation plan
• identification and assessment methodology
• appetite and tolerance
• classification.
Monitoring the implementation of the response strategies
Risk Coordinators
Summary Functions
• Intervening in instances where the risk
management efforts are being
hampered
• Providing guidance and support to
manage "problematic" risks
Risk Management Committee
Summary Functions
• Assist AO / Authority to discharge their responsibilities
for risk management.
• Review and recommend risk management policy,
strategy, implementation plan & appetite
• Evaluate the extent and effectiveness of integration of
risk management
• Evaluate the effectiveness of the mitigating strategies
Internal Audit
Summary Functions
• to provide an independent, objective assurance on the
effectiveness of the Institution’s system of risk
management
• evaluate the effectiveness of the entire system of risk
management
• provide recommendations for improvement where
necessary.
• Execute risk-based audits
Managers & Supervisors
Summary Functions
• Setting the tone for risk management in the
respective units that they manage
• Owning risks which the managers are
responsible for managing
• Managing the risks
• Reporting the risks to relevant parties
• Monitoring the risks for changes, management
status and effectiveness of current controls
Other Officials
Summary Functions
• Integrating risk management into their day-to-day activities
• Applying the risk management processes in their respective
functions;
• Implementing the delegated action plans to address the
identified risks;
• Informing their supervisors and/or the Risk Management
Unit of new risks and significant changes in known risks;
• Co-operating with other role players in risk management
Thank you
.