e r 2 - Umgeni Water

| Analysis of Risks Chapter# Risk and Risk Owner Overall Control Strength (OCS)Current Residual Risk Rating(CRRR)Risk Gap (RG)Mitigation Approachresource infrastructure requirements and implementationprogrammes. Umgeni Water’s infrastructure requirementsare consolidated into its Infrastructure Master Plan, whichis updated on an annual basis.4 Catastrophic failure ofstrategicinfrastructureRisk Owner: Heads ofOperations5 Health, Safety andEnvironmentRisk Owner: ChiefExecutiveOCS: (80%) Very GoodCRRR: R 35,000,000 MinorRG: R17,5000,000 MinorRejected by management &action to be taken within the2011/2012 business plan period.OCS: (48%) SatisfactoryCRRR:R 84,500,000 ModerateRG: R76,375, 000 Rejected bymanagement & action to betaken within the 2011/2012business plan period.Umgeni Water views this risk in the context of forcemajeurein that there is a low probability of occurrence buta high severity & impact which is out of the organisation’sdirect control. Umgeni Water’s insurance programmeincludes assets, business interruption and public liabilityinsurance policies. A Business Continuity Managementframework includes crisis management plans tostrengthen the organisation’s ability to respond todisasters.Umgeni Water maintains the following systems tomitigate this risk: Pre-screening & post screening medicalexaminations, contractor health & safety induction,Occupational Health & Safety management systems inOperations (OHSAS 18000) and being developedcorporate-wide, Occupational injuries & disease safetystandards & programmes are implemented. Wastemanagement & biodiversity strategies are beingdeveloped. The organisation ensures compliance withwater & environmental legislation & regulations, whichincludes monitoring and reporting if there is noncompliance.Refer to section 9 of the financial business plan for the analysis of the financial risks; sustainable tariff, credit riskconcentration and liquidity risk.Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016 Page 151