Empowering CROs to Navigate the Current Risk
Description: Empowering CROs to Navigate the Current Risk Management Culture Learnings from CoE M Khumalo General Challenges Facing the Risk Management Function No uniformstandardised or prescribed guidance on how and where we must be positioned
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slide1. Empowering CROs to Navigate the Current Risk Management Culture – Learnings from CoE M Khumalo<br>
slide2. General Challenges Facing the Risk Management Function No uniform/standardised or prescribed guidance on how and where we must be positioned (both a Threat & Opportunity) – still at the core of our challenges
Our existence is still subject to varying views and perception on our roles and mandate in an organisation
Models, structures, roles vary across organizations
Ownership of practice – Risk, Internal Control, Audit
Political and Financial limits and considerations vs. competing needs<br>
slide3. Why is That? Risk Management can mean and can be many things to different organizations:
Strategy focused – leads in Strategy & Planning
Assurance focused – varying forms of independence
Driver of systems of governance
Just another additional advisor service? Vs. Legal Vs. Finance Vs. Audit
The function is still maliciously there for compliance<br>
slide4. How GRC is Positioned in the City of Ekurhuleni Fully fledged independent department headed by a CRO directly accountable to the City Manager (Accounting Officer)
CRO is standing invitee on the Mayoral Committee
Independent Risk Committee (5 external members)
Risk Champions in all departments with at least 55% weighting on GRC on Performance Agreements – Focusing on process and content
Focus on Governance, Risk Management & Compliance
Primarily a Level 2 Assurance Provider
Diverse portfolio of responsibilities and functions
Greater control over maturity of governance, risk and compliance in the institution<br>
slide5. GRC Model of Operation - CoE Risk Management Department Risk Committee Audit Committee Council Departments Departments Departments Departments Entities GRC Forum<br>
slide6. Core Functions<br>
slide7. What Have Been the Main Challenges? Decentralisation of functions to Depts. requiring substantial capacitation
Steep learning curve for Departmental Risk Practitioners
Thin budget
Many functions are still new and at low levels of Maturity for different reasons:
BCM: Technical Capability
OHS: Change in function
Compliance Management
Risk Financing<br>
slide8. Successes Greater visibility at key management levels
Greater management confidence on governance, risk and compliance management as an advisory service – and assurance provider
Greater accountability in appearance (championing and culture) and fact (performance, oversight and practical implementation)<br>
slide9. Immediate Focus & Priorities Adapt with organisational needs & expectations ,in light of potential changes
Gain visibility at political oversight structures to empower their roles
Objectively demonstrate value add
KPAs and Measurable outcome-based KPIs critical
Intensified focus on Training, Awareness and championing
Enhance GRC data analysis to generate better intelligence
Enhance levels of capability maturity for key functions
BCM
OHS
Compliance Management
Risk Financing<br>
slide10. Key strategic thrusts for CROs to consider in an evolving environment Focused and structured reporting to oversight structures – including risk disclosures – started with 2 thick packs for Risk Committee – Target is much lesser
Drive risk management towards business (part of management assurance – championing)
Don’t try to be everything to everyone – too many ‘best’ practices – implementing through conferences
Invest in research capacity – and build own capacity
Participation in practice development (Our frameworks are largely dependent on standards set outside of public service) – signed MoU with Ethics Institute
Increased focus on Risk and Opportunity Management
Adjust to changes in internal and external context
Locate risk management within your environment
How our efforts translate to performance<br>
slide11. Thank You<br>
slide2. General Challenges Facing the Risk Management Function No uniform/standardised or prescribed guidance on how and where we must be positioned (both a Threat & Opportunity) – still at the core of our challenges
Our existence is still subject to varying views and perception on our roles and mandate in an organisation
Models, structures, roles vary across organizations
Ownership of practice – Risk, Internal Control, Audit
Political and Financial limits and considerations vs. competing needs<br>
slide3. Why is That? Risk Management can mean and can be many things to different organizations:
Strategy focused – leads in Strategy & Planning
Assurance focused – varying forms of independence
Driver of systems of governance
Just another additional advisor service? Vs. Legal Vs. Finance Vs. Audit
The function is still maliciously there for compliance<br>
slide4. How GRC is Positioned in the City of Ekurhuleni Fully fledged independent department headed by a CRO directly accountable to the City Manager (Accounting Officer)
CRO is standing invitee on the Mayoral Committee
Independent Risk Committee (5 external members)
Risk Champions in all departments with at least 55% weighting on GRC on Performance Agreements – Focusing on process and content
Focus on Governance, Risk Management & Compliance
Primarily a Level 2 Assurance Provider
Diverse portfolio of responsibilities and functions
Greater control over maturity of governance, risk and compliance in the institution<br>
slide5. GRC Model of Operation - CoE Risk Management Department Risk Committee Audit Committee Council Departments Departments Departments Departments Entities GRC Forum<br>
slide6. Core Functions<br>
slide7. What Have Been the Main Challenges? Decentralisation of functions to Depts. requiring substantial capacitation
Steep learning curve for Departmental Risk Practitioners
Thin budget
Many functions are still new and at low levels of Maturity for different reasons:
BCM: Technical Capability
OHS: Change in function
Compliance Management
Risk Financing<br>
slide8. Successes Greater visibility at key management levels
Greater management confidence on governance, risk and compliance management as an advisory service – and assurance provider
Greater accountability in appearance (championing and culture) and fact (performance, oversight and practical implementation)<br>
slide9. Immediate Focus & Priorities Adapt with organisational needs & expectations ,in light of potential changes
Gain visibility at political oversight structures to empower their roles
Objectively demonstrate value add
KPAs and Measurable outcome-based KPIs critical
Intensified focus on Training, Awareness and championing
Enhance GRC data analysis to generate better intelligence
Enhance levels of capability maturity for key functions
BCM
OHS
Compliance Management
Risk Financing<br>
slide10. Key strategic thrusts for CROs to consider in an evolving environment Focused and structured reporting to oversight structures – including risk disclosures – started with 2 thick packs for Risk Committee – Target is much lesser
Drive risk management towards business (part of management assurance – championing)
Don’t try to be everything to everyone – too many ‘best’ practices – implementing through conferences
Invest in research capacity – and build own capacity
Participation in practice development (Our frameworks are largely dependent on standards set outside of public service) – signed MoU with Ethics Institute
Increased focus on Risk and Opportunity Management
Adjust to changes in internal and external context
Locate risk management within your environment
How our efforts translate to performance<br>
slide11. Thank You<br>