Page 115 - DSD ANNUAL REPORT 2022-2

PART C: GOVERNANCE

1 INTRODUCTION

The Department is committed to maintaining the highest standards pillars of the Department’s corporate governance arrangements
of governance in the management of public finances and resources. and are developed and implemented based on relevant legislation
As a result, effective risk management, anti-corruption and fraud as well as best practices.
prevention, occupational safety and adherence to the Public
Service Code of Conduct are fundamental for good governance,
administration, improved service delivery as well as performance.
The frameworks, processes and procedures discussed below are core

2 RISK MANAGEMENT

Whether the Department has a risk management policy and Whether the Audit Committee advises the Department on risk
strategy. management and independently monitors the effectiveness
The Department adopted the International Organisation for of the system of risk management.
Standardisation (ISO) 31000 risk management methodology
including aligning with the 2017 Committee of Sponsoring Risk Management continues to be a standing item on the agenda of
Organizations of the Treadway Commission (COSO) Enterprise Risk EXCO, MANCO and the Audit Committee and reports are presented
Management integrating with Strategy and Performance. The DSD to these committee on all matters pertaining to risk management.
Risk Policy was reviewed and approved in May 2021 to guide the This provides the Audit Committee with the opportunity to monitor
risk management function with a strategy on how to respond to the the effectiveness of the system of risk management and provide
risks identified. further advice and guidance. Internal Audit conducts regular audits
on the risk management function to provide an assessment of
Whether the Department conducts regular risk assessments the effectiveness of risk management in the Department and to
to determine the effectiveness of its risk management propose areas for improvement.
strategy and to identify new and emerging risks.
Whether the Department sees progress in the management
As a practise, risk assessments are conducted annually with all of risks, whether this has transmitted into improvements in
business units to identify risks that could impede the attainment the Department’s performance, and if not, what it plans on
of the agreed objectives as well as opportunities brought upon by doing to address this problem.
the risks identified, to develop mitigation strategies to address such
risks and allocate these key responsibilities to applicable senior Based on the implementation of the risk methodologies and the
managers. In addition, the Department developed an ethics policy guidance provided by the risk unit to the Accounting Officer and
and strategy to ensure that there is a dedicated focus on ethics management, the Department was able to maintain its improved
management in the organisation.A risk assessment report for performance. However, more needs to be done to ensure that the
2021/22 was developed and approved by both the Chairperson of internal control environment is strengthened. The risk unit working
the Risk Management Committee and the Accounting Officer. with Internal Control and Internal Audit is working on improving
the combined assurance efforts.
Whether there is a Risk Management Committee that advises
management on the overall system of risk management,
especially the mitigation of unacceptable levels of risk.

The Department’s Risk and Ethics Management Committee (REMC)
continues to support and provide advice and guidance to the
Accounting Officer. The Committee meets on a quarterly basis to
review the progress that the Department is making in addressing
its risks and to provide strategic direction on matters pertaining to
risk management. Furthermore, based on the need, in-committee
meetings are also convened. In this regard, the Department has
four (4) external risk management committee members who have
expertise in the fields of Risk Management, Governance, Internal
Audit, Finance, and ICT. The Chairperson of the REMC is also a
member of the Audit Committee.

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