1. ANNUAL RISK MANAGEMENT DISCLOSURE REQUIREMENTS Public Sector Risk Management Forum Presenter: Risk Management Support | 28 August 2014

2. CONTEXT Legislation General Annual Reporting Relevance of the RM Disclosure RM Disclosure Journey Public Sector “Picture” Best Practice 2

3. 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 3

4. 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 4

5. 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 5

6. 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 6

7. 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 7

8. 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? 8

9. 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 9

10. 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 10 RM DISCLOSURES JOURNEY (1)

11. 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) 11 RM DISCLOSURES JOURNEY (2)

12. 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 12 RM DISCLOSURES JOURNEY (3)

13. 13 PUBLIC SECTOR PICTURE

14. 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 14 BEST PRACTICES