Risk Management Overview
Section 62 of the Local Government: Municipal Finance Management Act 2003 (Act No. 56 of 2003), states that the Accounting Officer should take all reasonable steps to ensure that the municipality has and maintains effective, efficient and transparent systems of financial, risk management and internal control as well as the effective, efficient and economical use of the resources of the municipality.
The Risk Management Strategy and Framework aims to ensure that risks that could impede the achievement of objectives, are managed better and mitigated earlier, thereby improving the District Municipality’s ability to carry out its mission and achieve its goals.
The Fraud and Risk Management Committee (FARMCO) is guided by a charter which is in compliance with the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003).
The CWDM’s FARMCO consists of the Executive Directors, the Municipal Manager, and the Manager: IDP, Performance and Risk Management and also the Manager: Performance and Risk Management.
In the period under review, the FARMCO performed its mandated duties, which included the following:
- Receiving feedback on progress with the risk registers at a strategic and operational level;
- Giving feedback on establishing a common understanding of Risk Management;
- Monitoring progress with the updating of risk registers;
- Review and monitor ERM processes and outputs regularly;
- Review the Risk Management Policy;
- Review the Risk Management Strategy and Framework;
- Review the Risk Management Implementation Plan;
- Guide the development and implementation of ERM; and
- Brings serious risks to the senior manager’s attention, which contributes to a more informed decision-making process.
During this current financial year, the unit was responsible for risk management training, enhancing performance measurements, and monitoring compliance with the ERM policy and framework. IRM further continues to endeavour to assist in enhancing service delivery through the optimal utilisation of scarce resources.
Contact Us for More Information:
Deputy Director: Performance & Risk Management