Strategic plan 2012

Strategic plan 2012 - 2017

Contents 1. STRATEGIC PLAN 1-18 2. ANNUAL PLAN 19-28

Part A: STRATEGIC OVERVIEW VALUES • MISSION STATEMENT • To provide and maintain an effective and efficient national regulatory framework for the protection of persons, property and the environment against nuclear damage • VISION • To be an independent world class regulatory authority on nuclear safety NNR Corporate Score Card 2011 - 17

NNR Strategic outcome oriented goals • Effective Regulatory oversight and framework to assure Nuclear Safety and Security • Strengthen stakeholder relations and enhance corporate image • Create a high performance culture • Ensure financial viability and sustainability of the organisation • Develop and maintain sound organizational infrastructure • Enhance good governance • Ensure effective Human Capital Management

NNR Strategy Map: Strategic Goals and Objectives Customer & Stakeholder Perspective Stakeholder relations and enhance the corporate image of the NNR Effective Regulatory framework to assure Nuclear Safety and Security To assure that holders have an effective emergency preparedness plan Strengthen NNR ability to undertake independent verification of holder submissions To process applications for nuclear authorisations in a timely and accurate manner. To establish an independent verification capability for the NNR To benchmark and update safety standards and regulatory practices in line with national & international norms and requirements. inspections, audits, investigations and taking of enforcement action for identified non-compliances To improve NNR quality of work and effectiveness through compliance with national and international obligations as prescribed by the NNR Act To assure holder’s compliance with regulatory requirements To assure effective implementation of nuclear security measures by holders. To ensure that the NNR is positioned to respond to initiatives relating to nuclear expansion To strengthen stakeholder relations and improve public perceptions of the NNR To undertake regulatory research that ensures that the regulatory regime is strengthened Financial Viability and Sustainability of the Organisation To ensure prudent financial management in the NNR Finance Perspective To ensure that the NNR continues to remain a financially viable entity Sound Organisational Infrastructure Internal Processes perspective High Performance Culture To establish and maintain a high performance culture through defining, developing and implementing quality management programs and standards To develop and maintain independent and effective governance structures Good Governance Develop and maintain sound organisational infrastructure To improve and maintain an effective system of internal controls and risk management To ensure compliance with applicable legislation and policy framework Effective Human Capital Management Learning & Growth Perspective To have satisfied and productive employees To be the employer of choice *The Strategy map shows the interconnectedness between the perspectives

Program purpose

Resource considerations

STRATEGY RISK MANAGEMENT At the time of developing the strategic plan, the NNR had identified the following as key corporate risks, which are being addressed. These are; • Financial Viability and Sustainability • The NNR faces a risk of insufficient funding. This is caused by amongst others, the diminishing state allocation coupled with delays in the approval and gazetting of authorisation fees; difficulties in economic conditions and non-payment of authorisation fees by some authorisation holders. The current financial model does not adequately address to the full extent the activities of the NNR. • To address these challenges, the NNR will strive to maintain adequate funding and is therefore in a process of reviewing its funding model with a view to ensuring sustainability. • Effective Regulatory Oversight to Assure Nuclear Safety • The NNR is currently developing a comprehensive regulatory framework while reviewing the capacity requirements in line with the strategy and structure. The resulting resource requirements will be submitted to DOE and National Treasury.

STRATEGY RISK MANAGEMENT • Strengthening of Stakeholder Relations and Enhance the Corporate Image of the NNR • To address the risks, the NNR has developed and is implementing a comprehensive Communication Strategy • Development and Maintenance of Sound Organisational Infrastructure • ICT governance structures and policies are developed and implemented to address a number of previously identified risks. Some of the strategies implemented include: • The development of a three-year ICT strategy • The ICT infrastructure Turnkey project was implemented. The purpose of the project was to refresh the ICT infrastructure of the NNR. The project included upgrading the servers, communication and telephonic infrastructure of the organisation. Phase II of the project included skills transfer and the training of ICT staff on the new technologies which is on going

STRATEGY RISK MANAGEMENT • Effective Human Capital • Scarce nuclear skills and related capacity constraints in the sector and particularly to the NNR. • The risk of maintaining an effective human capital has been addressed through the development and implementation of a succession plan and knowledge management strategies

Annual performance plan

Customer & Stakeholders Summary of Measures & KPIs Goal 1: Effective Regulatory framework to assure Nuclear Safety and Security Goal 2:Strengthen stakeholder relations and enhance the corporate image of the NNR

Goal 1: Effective Regulatory framework to assure Nuclear Safety and Security Goal 2:Strengthen stakeholder relations and enhance the corporate image of the NNR Customer & Stakeholders Summary of Measures & KPIs

Financial Summary of Measures & KPIs Goal 4:Ensure Financial Viability and Sustainability of the Organisation

Internal Processes Summary of Measures & KPIs Goal 3: Create a High Performance Culture Goal 5: Develop and Maintain Sound Organisational Infrastructure Goal 6:Enhance Good Governance

Learning & Growth Summary of Measures & KPIs Goal 7: Ensure Effective Human Capital Management

Key Projects in 2013 • Steam Generator Replacement (SGR) project for the Koeberg Plant. • Review and assess the authorisation applications and associated Safety cases i.e. the Dedicated Isotope Production Reactor (DIPR) project). • Development of a viable funding model. • Disaster recovery program (back up facility available to ensure no loss of data due to theft or destruction of computer equipment). • New Build (early engagement).

NNR 2012/13 Budget as submitted

NNR 2012/13 Budget as approved

Budget Variances Major Variances There are two categories that have contributed to a bigger than expected variance. The categories are Compensation of Employees and Goods and Services. Compensation of Employees Additional Staff and new positions Additional staff is necessitated by the two critical projects that the NNR has to embark upon. The Steam Generator Replacement for Koeberg and the New Nuclear Build. The number of resources (additional staff) required is ten resources at an average of R700 000 per annum. The remaining R2 million relates to the new positions for the laboratory resources. The NNR is in the process of establishing its own laboratory. The number of resources needed is four (4). The remaining outer years were treated on the same basis of the 6% cost of living adjustment and the average 3.5% incentive bonus. Goods and services: These are expenses that directly relate to the costing of the strategic objectives to enable the NNR to perform its regulatory mandate. It is inclusive of our fixed costs, consulting fees and administration costs.

Budget Variances Major Variances The implications if the figures in Original Submission are not granted: • The organization will move into a deficit as reflected on the Adjusted Budget Table • The organization will not fulfill its mandate since the costs to achieve the strategic objectives will be reduced. Amongst others the number of inspection to be performed will be severely impacted. In order to breakeven or to fund the deficit the organization may require to make one or a combination of the following : • Increase authorization fees • Reduce goods and services • Reduce compensation of employees The options in point three above are not desirable as the organization will fail to fulfill its obligations.

Thank You

Strategic plan 2012 - 2017