Risk Management is a legislated legal mandate in terms of the Municipal Finance Management Act No. 56 of 2003. Section 62(1) (c) of the Municipal Finance Management Act, 2003 requires that:
“The accounting officer of a municipality is responsible for managing the financial administration of the municipality, and must for this purpose take all reasonable steps to ensure – (c) that the municipality has and maintains effective, efficient and transparent systems – of financial and risk management and internal control”
The unit comprises of risk management, compliance management and fraud prevention. The main focus is to enhance municipal service delivery by identifying and mitigating risks, non-compliance and fraud and corruption. To ensure alignment of risk, strategy and performance in achieving strategic objectives.
Risk Management Functions:
- Develop, implement and revise the Municipality’s Risk Management policies, Compliance policies and Fraud and corruption policies and procedures.
- Develop/review appropriate risk methodologies for the municipality.
- Facilitate and co-ordinate annual risk assessments for all categories of risk (Strategic, Operational, ICT and Fraud risks)
- Provide risk and advisory service to Management, Risk Management Committee, EXCO and Council.
- Monitor the implementation of risk mitigation response, non-compliance and fraud prevention.
- Provide reports to the Risk Management Committee, Management, Audit & Performance Committee, EXCO and Council in predetermined format and content.
- Educate and train the leadership, management and officials as to the risk, compliance and fraud prevention programme.
- Drive the implementation of fraud prevention initiatives as well as lead, develop and assist management in implementation of internal control strategies to mitigate fraud and corruption.
- Define and deploy fraud prevention and detection techniques and systems.
