Enterprise Risk Management (ERP) is a systematic formalised process that is instituted by each department to identify, assess, manage and monitor risks.
This system is important in order to evaluate risks and make informed and calculated decisions to mitigate the risks and minimise the effect on stakeholders. The process of ERP prepares the department to deal with risks during times and conditions of uncertainty while ensuring continued service delivery. Every employee is responsible for executing their duties and when risks are identified, the employee need to ensure that they understand the risk management processes and adhere to its procedures adopted by the department.
The Head Official in conjunction with the directorate: ERM drafted the strategy for Provincial Treasury and is also responsible, with the assistance from Risk management for implementing and maintaining effective, efficient and transparent systems of risk management and internal control. Risk management assists the department to achieve the following outcomes, among other things:
- More sustainable and reliable delivery services
- Informed decisions underpinned by appropriate rigor and analysis
- Reduced waste
- Prevention of fraud and corruption;
- Better value for money through more efficient use of resources; and
- Better outputs and outcomes through improved project and program management
The purpose of the ERM policy is to articulate the Departments’ risk management philosophy and appetite. The Department recognises that risk management is a systematic and formalised process and therefore adopts a holistic approach to the management of risks that can have both positive and negative consequences.