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

2

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

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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

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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

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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

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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

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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?

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RM DISCLOSURES JOURNEY

2012/13 Disclosure

Provide a brief description of the following:

1. Nature of risk management

2. Risk management strategies to identify risk and manage the risks

3. Progress made in addressing risks identified

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2013/14 Disclosure

Provide a brief description of the following:

1. Whether the Department has a risk management policy and strategy

2. Whether the Department conducts regular risk assessment

3. Whether there is a RMC that advises management on the overall system of

risk management

4. Whether the AC advises the Department on risk management and

independently monitors the effectiveness of the system of risk management

5. Whether the Department sees progress in the management of risks

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RM DISCLOSURES JOURNEY (1)

2014/15 Disclosure

Provide a brief description of the following :

1.Nature of risk management

Structure of RM

Composition of the Committees

Overall implementation of the RM processes (including approval of RM Docs)

2.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)

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RM DISCLOSURES JOURNEY (2)

2014/15 Disclosure

Provide a brief description of the following :

3.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

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RM DISCLOSURES JOURNEY (3)

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PUBLIC SECTOR PICTURE

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

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BEST PRACTICES