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ANNUAL RISK MANAGEMENT DISCLOSURE REQUIREMENTS

ANNUAL RISK MANAGEMENT DISCLOSURE REQUIREMENTS. Public Sector Risk Management Forum. Presenter : Risk Management Support | 28 August 2014. CONTEXT. Legislation General Annual Reporting Relevance of the RM Disclosure RM Disclosure Journey Public Sector “Picture” Best Practice.

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ANNUAL RISK MANAGEMENT DISCLOSURE REQUIREMENTS

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  1. ANNUAL RISK MANAGEMENT DISCLOSURE REQUIREMENTS Public Sector Risk Management Forum Presenter: Risk Management Support | 28 August 2014

  2. CONTEXT • Legislation • General Annual Reporting • Relevance of the RM Disclosure • RM Disclosure Journey • Public Sector “Picture” • Best Practice

  3. LEGISLATION Constitutional Requirements • Section 55(2) • Outlines the oversight powers of the National Assembly requiring that it provides mechanisms for accountability by executive state of organ • Section 114(2) • Provincial Legislature provided with similar powers for provincial executive state organs

  4. LEGISLATION (1) • Section 92(3)(b) • Members of cabinet must provide Parliament with full and regular reports concerning matters under their control • Section 133(3)(b) • Members of Executive Council of a province must provide the legislature with full and regular reports concerning matters under their control

  5. LEGISLATION (2) PFMA • Section 65 • Ministers required to table Annual Report Treasury Regulations • Paragraph 18.3.1.(b) • Include information on the achievement of objectives

  6. GENERAL ANNUAL REPORTING • Comprehensive report on department’s activities throughout the preceding year • Means for cabinet members to provide Parliament with full and regular reports concerning matters under their control (as expected) • Allows Parliament to evaluate the performance of the Departments • KEY reporting instruments for reporting against performance targets • Read with ENE (Budget Statement Two – Provincial) • Processes and timelines • Roles • Phases

  7. RELEVANCE OF RM DISCLOSURES • RM Concept – new or old? • Are we there yet? • How much work done on RM? IN THE BUSINESS OF STABILISING • Still trying to “embed” concept of RM • Still trying to prove RM value add • Trying to enhance reporting on RM • Measure annual progress in RM • Need to account

  8. RELEVANCE OF RM DISCLOSURES (1) • Usefulness of RMD • Can the Minister use the RMD information to address issues of service delivery? • Identify significant issues that affected the department? • Relevance - Treasury Regulation requires information on the achievement of objectives , does the RMD address this?

  9. RM DISCLOSURES JOURNEY 2012/13 Disclosure • Provide a brief description of the following: • Nature of risk management • Risk management strategies to identify risk and manage the risks • Progress made in addressing risks identified

  10. RM DISCLOSURES JOURNEY (1) 2013/14 Disclosure • Provide a brief description of the following: • Whether the Department has a risk management policy and strategy • Whether the Department conducts regular risk assessment • Whether there is a RMC that advises management on the overall system of risk management • Whether the AC advises the Department on risk management and independently monitors the effectiveness of the system of risk management • Whether the Department sees progress in the management of risks

  11. RM DISCLOSURES JOURNEY (2) 2014/15 Disclosure Provide a brief description of the following : • Nature of risk management • Structure of RM • Composition of the Committees • Overall implementation of the RM processes (including approval of RM Docs) • Identification and reviewing of strategic risks in alignment with the strategic planning • Process adopted and followed for risk identification and review and RM • Structure that reviewed and approved the strategic risk register (i.e. AO)

  12. RM DISCLOSURES JOURNEY (3) 2014/15 Disclosure Provide a brief description of the following : • Contribution of risk management process in the achievement of organizational objectives • Brief statement on how RM contributed to achievement of goals objectives • Indication of the maturity level 4. Key\Top Departmental Risks

  13. PUBLIC SECTOR PICTURE

  14. BEST PRACTICES • Minimum requirements • Some Public Entities • Air Traffic Navigations Services; Development Bank of South Africa; Industrial Development Corporation; Eskom; Small Enterprise Finance Agency • Some Private Sector • ABSA; Liberty; Sasol; Truworths • Information Reported • Integrated reporting

  15. THANK YOU!!

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