ANNUAL REPORT 2012 - University of South Africa

UNISA ANNUAL REPORT 2012
Report on Risk Exposure
Assessment and Risk Management
Risk Management
Framework
The university is committed to
a continuous, systematic and
integrated process of enterprisewide
risk management that
focuses on identifying risks as
well as managing and monitoring
all known forms of risk across the
institution. The features of this
process are outlined in the Enterprise
Risk Management (ERM)
Policy Framework (amended and
approved by Council in November
2012). It aligns with industry best
practice, King III and the global
leading practice, ISO 31000, and
the 2009 Risk Management
Standard.
The university’s risk appetite is
defined as the level of risk we are
willing to accept in fulfilling our
objectives. The risk appetite statement
was developed using a qualitative
method and has been approved
by Council. Unisa’s risk appetite
can be categorised into five broad
areas as illustrated in the table at
the bottom of the page.
Managing risks in accordance with
the risk appetite statement allows
the university to reasonably and
responsibly compete in the sector, be
regarded as a good corporate citizen,
achieve its objectives and enhance
its reputation as a higher education
institution which may be trusted
equally by stakeholders and the
regulatory authorities.
Risk management
governance structure
The Council has established the
university’s risk management governance
structures, roles and responsibilities
which have been detailed in
the ERM Policy Framework.
n The Council is responsible for
overseeing the adequacy and overall
effectiveness of the university’s
risk management performance.
n The Audit and Enterprise Risk
Management Committee of
Council is mandated to oversee the
implementation of the university’s
enterprise risk management framework,
receives the risk reports of
the university from the Management
Committee and reports to
Council on key risks facing the
university and associated risk
mitigation responses.
n Central to the risk management
process at Unisa is the Risk, Ethics
and Controls Committee, a subcommittee
of the Management
Committee, which comprises
members of the Executive
Management. This committee
met four times during 2012 to
review, evaluate and coordinate the
management of identified strategic
and operational risks (financial and
non-financial), faced by the university.
Management, with the advice
from the Risk, Ethics and Controls
Committee, is accountable to
Council for designing, implementing
and monitoring the process of
risk management and integrating it
into the day-to-day activities of the
university.
n The Directorate of Enterprise Risk
Management is tasked primarily
with the responsibility of facilitating
the deployment and embedding of
risk management principles across
the university.
Risk management
process
Enterprise risk management at
Unisa comprises two integrated and
well-aligned components: strategic
risk management and operational
risk management.
Strategic risk
management
The identification,
analysis, evaluation
and treatment of
significant or material
risks which could have
an effect on the
sustainability of the
university
Enterprise
risk
management
Operational risk
management
The identification,
analysis, evaluation
and treatment
of risks related to
people, systems and
processes, regulatory
compliance and legal
and business continuity
The strategic risk management
process involves extensive consultations
with Council members and
Executive Management to identify the
key risks relating to the university’s
challenging and competitive environment
and market dynamics. As part
of the strategic planning, a rigorous
risks assessment process is followed
to ensure that the university’s top
risks are identified and managed.
AREA
African footprint, areas of patents, contract management and new emerging technologies
Teaching and learning; research and training quality
Ethical conduct, staff and student safety, business continuity management
(including ICT), financial and asset management
Compliance with prescribed higher education regulatory and legislative requirements
Fraud, corruption and other irregularities
APPETITE LEVEL
MODEST
LOW
LOW
ZERO
ZERO
31