The City of Cape Town has been recognised for its outstanding contribution towards risk management, winning a prestigious Institute of Risk Management (South Africa) award.
The award was made at IRMSA's 2010 Award Ceremony gala dinner in Johannesburg on Friday 15 October 2010, where South Africa's top risk management professionals were recognised and judged by peers.
Chief Risk Officer Ludwig Geldenhuys received the award on behalf of the City, along with Glenn Ho from KPMG, the City's risk management partner. KPMG assists the City with the implementation and embedding risk management.
Geldenhuys said the award was given "in acknowledgement for the phenomenal role that was played by IRM in promoting risk management in the City.
"It was a 'Public Sector Award', and is not limited to local government or municipalities, which means that it is inclusive of all three tiers of government and parastatals."
According to Geldenhuys, integrated risk management is not about avoiding risks, but about having the tools to manage risks proactively, in a systematic manner, in order to achieve the strategic objectives of an organisation.
"Risk management is not a once-off initiative, but a process consisting of various components to manage risks," he said.
These components consist of communication and consultation; understanding the strategic objectives of the organisation as well as the internal and external environment in which it operates; the assessment of risks through risk identification, analysis and evaluation, the treatment of risks to minimise or prevent a recurrence of an event; and the monitoring of risks.
The City was nominated by its risk management partner KPMG earlier this year. Nominations were evaluated by IRMSA according to the following requirements, all of which the City achieved:
- Outstanding achievement between July 2009 and June 2010;
- ISO 31000 Evaluation Principles;
- Ongoing contributions to the Risk Management Industry;
- Development of new or innovative concepts to enhance or promote the discipline of Risk Management;
- Outstanding creativity, expertise and experience in managing the risk portfolio of an organisation; and
- Ability to demonstrate the added value of a risk management programme.
The City received a rating of 3.9 - one of the highest ratings in the country - when the National Treasury conducted its annual risk management maturity survey in September 2010.
Geldenhuys said risk management is a dynamic discipline, and the City endeavours to constantly consider and implement international best practice. The City has recently changed components of its risk management methodology, and has changing the focus to address core risks, thereby minimising the number of risks on the risk registers, which allows more focus on treatment options to optimise the use of scare resources, such as staff, budget and assets.
Geldenhuys said the award demonstrates that the City complies with risk management requirements, and should assist the City in achieving even higher ratings.