Session 1 Legislative Requirements + Other

Transcript:Session 1 Legislative Requirements + Other:
Session 1 Legislative Requirements + Other Frameworks Governing Risk Management Introduction Welcome Introduction Overview Enterprise Risk Management Definition A systematic, integrated and formalised process to identify, assesses, manage and monitor risks throughout the Institution rather than only in selected business areas or disciplines. Focus: Enterprise-wide or Institution-wide Risk management throughout the institution Not focused on selected business areas or disciplines PFMA Requirements for Risk Management Risk management contributions: Section 38 (a) (i) & Section 51 (a) (i) of the PFMA - need for AO& Authorities of department, trading entity or constitutional institution have and maintain effective, efficient and transparent systems of financial and risk management and internal control. Section 6 (2) (a) of the PFMA – NT norms and standards Chapter 4 and 8 of the PFMA - financial planning, expenditure and liability management Intergovernmental Fiscal Relations Act (No. 97 of 1997) Risk management contributions: Establishment , Functions , Meetings of Local Government Budget Forum Process for revenue-sharing among the spheres of government Revenue-sharing and allocation of money in terms of section 214 of Constitution Commission’s recommendations Division of Revenue Bill Intergovernmental Relations Framework Act (No. 13 of 2005) Risk management contributions: Development of intergovernmental structures such as President’s Co-ordinating Council, National intergovernmental forums, Provincial intergovernmental forums, Municipal intergovernmental forums Conduct of intergovernmental relations Settlement of intergovernmental disputes MFMA, 2003 Risk management contributions: Section 62 (c) (i) and 95 (c) (i) - municipality has and maintains effective, efficient and transparent systems of financial and risk management and internal control. Section 20 (1) (iv), (v) and (vi) – NT norms and standards Chapter 4 - municipal budgets Chapter 6 – debt Chapter 7 & 8 – roles and responsibilities Chapter 3 - revenue management Occupational Health and Safety Act Risk management contributions: Establishment of technical committees of Council-. Health and safety policy.- General duties of employers to their employees-. General duties of employers and self-employed persons to persons other than their employees.- General duties of manufacturers and others regarding articles and substances for use at work. Offences, penalties and special orders of court King Code of Corporate, 2009 The need to develop, risk management policy, strategy and plan The development of a risk register Continuous training and induction on risk governance Establishment of risk committees Appointment of the office of a Chief Risk Officer On-going monitoring of the risk management system Structured reporting and communication The internal audit function - risk