Session 1

1. Session 1 Legislative Requirements + Other Frameworks Governing Risk Management

2. Introduction • Welcome • Introduction • Overview

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Batho Pele Principles Contribution to Risk Management • Consultation • Setting service standards • Increasing access • Ensuring courtesy • Providing information • Redress • Openness and transparency • Value for money

11. 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

12. 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

13. Session 2: Governance Structure

14. 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

15. Risk Coordinators Summary Functions • Intervening in instances where the risk management efforts are being hampered • Providing guidance and support to manage "problematic" risks

16. 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

17. 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

18. 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

19. 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

20. Thank you .