1. With current ethical challenges, is it safe to say Risk Management processes are responsive to an accountable government? CIGFARO- AUDIT &RISK INDABA JUNE 2017 Hombakazi Xalabile

2. TABLE OF CONTENTS WHAT IS ENTERPRISE RISK MANAGEMENT ERM LIFE CYCLE
IMPORTANCE OF ERM
ETHICS AND ETHICAL BEHAVIOUR
ETHICAL ISSUES
CAUSES OF UNETHICAL PRACTICES
RISK MANAGEMENT AND ACCOUNTABILITY

3. ENTERPRISE RISK MANAGEMENT DEFINED
Enterprise Risk Management (ERM) is defined by the Committee of Sponsoring Organizations (COSO) as “a process, effected by an entity’s board of directors, management and other personnel, applied in strategy-setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.”

4. ERM Life Cycle Evaluate Performance Implement Confirm next steps
Evaluate options
Identify and prioritize risks
Goal setting
Culture
Internal Environment
Event Identification
Risk Response
Control Activities
Objective Setting
Information & Communication
Risk Assessment
Monitoring

5. Why ERM Is Important UNDERLYING PRINCIPLES:
Every entity, whether for-profit or not, exists to realize value for its stakeholders.
Value is created, preserved, or eroded by management decisions in all activities, from setting strategy to operating the enterprise day- to-day.

6. Why ERM Is Important
ERM supports value creation by enabling management to:
Deal effectively with potential future events that create uncertainty.
Respond in a manner that reduces the likelihood of downside outcomes and increases the upside.

7. ETHICS AND ETHICAL BEHAVIOUR
A code of moral standards of conduct for what is “good” and “right” as opposed to what is “bad” or “wrong”
ETHICAL BEHAVIOUR
That what is “good” or “right in the context of governing moral code
Ethical behaviour is value driven

8. Ethical Issues Developing ethical culture
Eliminating conflict of interest
Enhancing cross-cultural ethics
Boosting fraud prevention
Aligning risk management to Corporate Governance
Equitable action to every shareholder
Fostering acceptable values in inter- organisational relationships

9. ETHICAL ISSUES Unbiased relationship with employees
Appropriate disposition to acquisition and use of intellectual property
Observance of acceptable standards in finance
Adherence to genuineness of proposition in sales, marketing and representation
Application of technology for improving human race
Effective use of acceptable production and assurance technique

10. ETHICAL ISSUES Promoting gender equality at work
Participating in community development
Accepting full responsibilities for its action
Prohibition of bribery

11. Causes of Unethical Practices
Greed
No Time
No Experience
Breakdown of control
Deficient Education
Circle of Influence
Poor organisational culture
Absence of Requisite Risk Management
Gamble
Lack of Integrity

12. Ethics Management Framework

13. With current ethical challenges, is it safe to say Risk Management processes are responsive to an accountable government?

14. Risk Management vs Accountability
Accountability facilitates good governance insofar as active involvement of citizens in transparent decision making shapes good governance.
It is pursuant to this understanding of good governance that citizens have an enforceable right to take an active part in governance and to have public services of good quality.
Risk assessments are a tool to gather information and communicate externally eventual obstacles to good administration.
Openness increases public trust which is necessary for reform and efficiency.