Here - ETDP Seta

Notes to the Annual Financial Statements (continued)
19. Risk Management
19.1 General
In the course of its operations, the ETDP SETA is exposed to interest rate, liquidity risk and market risk. In order to monitor these risks,
the ETDP SETA has developed a risk management strategy in terms of TR28.1. Below is the ETDP SETA’s risk management process.
19.2 Operational risk
Operational risk is the risk of loss arising from system failure, human error or external events. When controls fail to perform, operational
risk can cause damage to reputation, have legal or regulatory implications or can lead to financial loss. The ETDP SETA cannot expect
to eliminate all operational risks, but by initiating a rigorous control framework and by monitoring and responding to potential risk,
the ETDP SETA is able to manage risk. Controls include effective segregation of duties, monitoring, authorisation, reconciliation, staff
education and risk assessment processes.
19.3 Liquidity risk
This risk is managed via proper working capital management, expenditure management and actual versus forecast cash flows and the
cash management policy. Adequate reserves in support of existing commitments and liquid resources are maintained. The table below
provides an analysis of the ETDP SETA’s financial liabilities in terms of their maturity groupings as per the statement of financial position.
These amounts are not discounted as they are as per contracts:
Not later than one
month
Later than one
month but not
later than three
months
Later than three
months but not
later than one year
Later than one
year but not later
than five years
R’000 R’000 R’000 R’000
March 2011
Finance lease obligations - - - -
Trade and other payables 47,060 - 338 -
March 2010
Finance lease obligations - - - -
Trade and other payables 18,738 - - -
86 ETDP•SETA Annual Report 2010/11