The regulatory framework for enterprise risk management in South African local government
Background: Enterprise risk management (ERM) entails the processes and procedures applied to mitigate uncertainties that could impact the achievement of objectives. New public management introduced business practices such as ERM to the public sector, which was adopted by the South African government...
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| Format: | Article |
| Language: | English |
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AOSIS
2022-09-01
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| Series: | Africa’s Public Service Delivery & Performance Review |
| Subjects: | |
| Online Access: | https://apsdpr.org/index.php/apsdpr/article/view/610 |
| _version_ | 1817980522909925376 |
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| author | Christopher E. Whittle Danielle Nel-Sanders |
| author_facet | Christopher E. Whittle Danielle Nel-Sanders |
| author_sort | Christopher E. Whittle |
| collection | DOAJ |
| description | Background: Enterprise risk management (ERM) entails the processes and procedures applied to mitigate uncertainties that could impact the achievement of objectives. New public management introduced business practices such as ERM to the public sector, which was adopted by the South African government across all three spheres of government including municipalities. Local government is obliged to implement ERM because of legislative requirements, National Treasury prescripts and the adoption of the King IV Code of Corporate Governance.
Aim: To discuss ERM within the public sector and provides the contextualisation of ERM. It sets out the ERM structure, roles and responsibilities required by legislation and good corporate governance. Recommendations to improve ERM are provided.
Setting: Within the South African local government.
Methods: This study adopted a qualitative research approach and applied a research method based on desktop analysis of literature and secondary data sources using unobtrusive research techniques.
Results: Reference is only made to risk in relation to financial management in municipal legislation. National Treasury has guided ERM through the Public Sector Risk Management Framework. The King IV Code provides guidance to local government councils regarding risk governance.
Conclusion: The current legislative framework does not provide adequate guidance for effective ERM. Focus is placed on controls and compliance, which undermines ERM’s potential contribution to value creation. ERM within local government has little predictive value and has limited contribution in ensuring objectives are achieved. |
| first_indexed | 2024-04-13T22:54:41Z |
| format | Article |
| id | doaj.art-26497e7808fc407cb0559530a5f95217 |
| institution | Directory Open Access Journal |
| issn | 2310-2195 2310-2152 |
| language | English |
| last_indexed | 2024-04-13T22:54:41Z |
| publishDate | 2022-09-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Africa’s Public Service Delivery & Performance Review |
| spelling | doaj.art-26497e7808fc407cb0559530a5f952172022-12-22T02:26:03ZengAOSISAfrica’s Public Service Delivery & Performance Review2310-21952310-21522022-09-01101e1e810.4102/apsdpr.v10i1.610267The regulatory framework for enterprise risk management in South African local governmentChristopher E. Whittle0Danielle Nel-Sanders1School of Public Management, Governance and Public Policy, College of Business and Economics, University of Johannesburg, JohannesburgSchool of Public Management, Governance and Public Policy, College of Business and Economics, University of Johannesburg, JohannesburgBackground: Enterprise risk management (ERM) entails the processes and procedures applied to mitigate uncertainties that could impact the achievement of objectives. New public management introduced business practices such as ERM to the public sector, which was adopted by the South African government across all three spheres of government including municipalities. Local government is obliged to implement ERM because of legislative requirements, National Treasury prescripts and the adoption of the King IV Code of Corporate Governance. Aim: To discuss ERM within the public sector and provides the contextualisation of ERM. It sets out the ERM structure, roles and responsibilities required by legislation and good corporate governance. Recommendations to improve ERM are provided. Setting: Within the South African local government. Methods: This study adopted a qualitative research approach and applied a research method based on desktop analysis of literature and secondary data sources using unobtrusive research techniques. Results: Reference is only made to risk in relation to financial management in municipal legislation. National Treasury has guided ERM through the Public Sector Risk Management Framework. The King IV Code provides guidance to local government councils regarding risk governance. Conclusion: The current legislative framework does not provide adequate guidance for effective ERM. Focus is placed on controls and compliance, which undermines ERM’s potential contribution to value creation. ERM within local government has little predictive value and has limited contribution in ensuring objectives are achieved.https://apsdpr.org/index.php/apsdpr/article/view/610enterprise risk managementnew public managementriskcorporate governancelocal governmentsouth africa |
| spellingShingle | Christopher E. Whittle Danielle Nel-Sanders The regulatory framework for enterprise risk management in South African local government Africa’s Public Service Delivery & Performance Review enterprise risk management new public management risk corporate governance local government south africa |
| title | The regulatory framework for enterprise risk management in South African local government |
| title_full | The regulatory framework for enterprise risk management in South African local government |
| title_fullStr | The regulatory framework for enterprise risk management in South African local government |
| title_full_unstemmed | The regulatory framework for enterprise risk management in South African local government |
| title_short | The regulatory framework for enterprise risk management in South African local government |
| title_sort | regulatory framework for enterprise risk management in south african local government |
| topic | enterprise risk management new public management risk corporate governance local government south africa |
| url | https://apsdpr.org/index.php/apsdpr/article/view/610 |
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