The development of a risk management model supporting corporate governance in the City of Cape Town

[摘要] ENGLISH ABSTRACT: Good governance, improved service delivery and sound fiscal rnanagernentare sorne of the key initiatives of the National Government to create a betterlife for all South Africans as stated in the preamble of the Constitution of theRepublic of South Africa,1996 (Act 108 of 1996). Municipalities, inparticular, have a specific reference framework in this regard. In each of theseinitiatives there is a certain amount of inherent risks which may hamper theGovernment's overall service delivery programmes. In terms of the MunicipalFinance Management Act, 2003 (Act 56 of 2003) for Local Government,councillors and municipal managers are, inter alia, responsible to ensure goodcorporate governance, ensure effective, efficient and transparent systems offinancial - and risk management, internal control as well as the managing andsafeguarding of assets and to ensure sustainable service delivery tocommunities.Rendering services of a high standard, economically and utilising resourcesefficiently remains a challenge for South Africa as a whole and in particular forlocal government. The absence of a corporate mechanism or model for theCity of Cape Town makes it difficult to ensure that risks are addressed in anintegrated manner. The development of a risk management model supportingcorporate governance for the City of Cape Town will endeavour to reduceand/or minimise its risks. The question that arises and which this researchstudy seeks to provide an answer to is How can the City of Cape Town dealwith risks relating to corporate governance in order to fulfil its constitutionaland legislative obligations to its community in a sustainable manner?The findings of applicable risk management models and/or approachesimplemented at organisations representing semi-private and private sectorswere analysed for consideration during the development of a proposed riskmanagement model for the City of Cape Town. Legislative requirements and specific developments on risk management in the public sector havebeen researched in an attempt to determine what local government isexpected to do in addressing their risks.When addressing the issue of corporate governance, Chief Executive Officersshould reassess their organisations' corporate culture and set the tone fromthe top. In the City of Cape Town's case the City Manager has a critical rolein balancing the need to address competitive forces and the need toconsistently do the right things. Top Management should constantly evaluatethe completeness and appropriateness of corporate governance policies andpractices as well as critical processes, internal controls and other riskmanagement practices. Furthermore, the quality and competence of all staffneed to be examined to determine if they understand government'schallenges with regard to corporate governance. The development of a riskmanagement model for the City of Cape Town will enable the organisation topro-actively address its risks in this regard to fulfil its constitutional andapplicable legislative requirements.

[发布机构] Stellenbosch University