Enterprise Risk Management
Governance of Risk Management
The Board of the HRSC, along with its Executives and Management, are committed to a structured and formalised Enterprise Risk Management process across the organisation and have developed an ERM Framework that is aligned to the principles of good corporate governance, as supported by section 51(1) (a) (i) of the PFMA, Treasury Regulation 27.2.1, Public Sector Risk Management Framework, King IV Report on Corporate Governance for South Africa™ and ISO 310000 Risk Management Standard.
Risk is inherent in all strategic and operational activities. The HSRC recognises that Enterprise Risk Management is a systematic and formalised process to identify, assess, manage and monitor risks and therefore adopts an enterprise-wide approach to the management of risk. Effective management of risk will enable the organisation to anticipate and respond to changes in the environment, as well as make informed decisions under conditions of uncertainty, improve deployment of capital, and create accountability. Risk management must be central to all organisational decisions, and ought to focus on the need to seize opportunities and control threats
An enterprise-wide approach to Enterprise Risk Management is adopted by the organisation, which means that every risk in each part of the organisation will be included in a structured and systematic process of Risk Management. It is expected that the Enterprise Risk Management processes will become embedded into the organisation’s systems and processes, ensuring that the responses to risks remain current and dynamic. All Risk Management efforts will be focused on supporting the achievement of corporate strategic and operational objectives and ensure compliance with relevant legislation and fulfil the stakeholders’ expectations.
The Board, along with its Executive Management, recognises that Risk Management is a critical management tool for ensuring the achievement of objectives and ultimately deliver on its mandate. The balancing of risk and opportunity is an integral part of improved performance, growth, and sustainable value creation.
The Board will define the risk appetite in terms of the level of risk that is acceptable to the organisation. Risks with unacceptable exposure must be addressed appropriately by management according to the HSRC’s RM Framework and Strategy.
The ERM process requires far more than the adoption of a compliance approach, therefore the HSRC has developed and implemented a common, systematic, and integrated enterprise-wide approach to Risk Management. The approach will increase risk awareness, ensure appropriate management of risks, and make divisional risk profiles transparent, therefore enabling risks to be compared and aggregated and facilitating an integrated response to risks, which will ultimately improve efficiency in Risk Management efforts.
The integrated approach to managing risk seeks to ensure that knowledge and experience are shared, Risk Management becomes embedded in day-to-day systems, processes, and the way the organisation is run, and that every risk in each part of the organisation will be included in a structured and systematic process of Risk Management. Effective Risk Management reduces uncertainty and threats and provides more confidence in pursuing opportunities and enabling the HSRC to be more decisive in pursuing its vision, Mission, Goals, and Objectives while considering its risk appetite. Central to the success of this approach is the clarification of accountabilities and responsibilities for Risk Management within the HRSC.
For any information and queries please contact the below official
Enterprise Risk Management unit
TELEPHONE: +27 (0)12 302 2062
Cell. 083 9864106
EMAIL : Thdlamini@hsrc.ac.za