Lekwa Local Municipality 2013/14 - Co-operative Governance and ...

EVALUATIONHow will the success/failure of the communication strategy be measured?7.18 RISK MANAGEMENT COMMITTEEThe Risk Management Committee (“Risk Committee”) is proposed but not yet established by the Municipality(Municipality) to assist the Municipal Manager to fulfil her/his Enterprise Risk Management (ERM) and controlresponsibilities in accordance with the requirements of the Municipal Finance Management Act (MFMA), 2003and to assist Council with regard to matters set out in this document.Purpose of Risk ManagementThe Risk Committee will provide oversight of the risk management process.The Risk Committee will monitor the management of significant risks which may prevent theMunicipality from meeting its objectivesThe Risk Committee will facilitate communication between all parties engaged in riskmanagement activities.The Risk Committee will report to the Municipal Manager on the risk management workundertaken and the extent of any action taken by management to address areas identified forimprovement.Terms of ReferenceThe Municipal Manager is responsible for the total process of risk management, including ensuring thatoperating units under her/his controls have effective, efficient and transparent systems of financialmanagement, risk management and internal control.The Risk Committee shall:Review and assess the integrity of the risk control systems and ensure that the risk policy andstrategies are effectively managed;Set out the nature, role, responsibility and authority of the Risk Management function within theMunicipality and outline the scope of risk management work;Monitor the management of significant risks to the Municipality, including emerging andprospective risks;Together with the Municipality’s Senior Manager Legal Services, the Risk Committee will reviewany legal and regulatory matters that may have a significant impact on risk including any relatedcompliance policies, programmes and reports received from government;Review management and internal audit reports detailing the adequacy and overall effectivenessof the Municipality’s risk management process (including scope and depth) and itsimplementation by management;Reviewing any findings and recommendations of the external auditors, internal auditors or otherparties in relation to risk management and internal control, confirm that appropriate action hasbeen taken;To review and approve the risk policy, strategy and implementation plans. The Risk Committeewill ensure compliance with such policies, and with the overall risk profile of the Municipality;Review risk identification and assessment methodologies;Review and approve the risk tolerance limits of the Municipality;To have due regard for the principles of governance and codes of best practice;Establishing the risk management framework/ guidelines (including the process and reportingrequirements) to be used in managing and reporting on risk;Monitoring the reporting of risk by management with particular emphasis on significant risks orexposures and the appropriateness of the steps management has taken to reduce the risk to anacceptable level;Monitoring progress on action plans developed as part of the risk management process;Reviewing the impact of any changes in the Municipality on the risk management process and theresponse to these changes including the update of the risk profile;223 | P a g e