King III Report on Corporate Governance

 

The spirit of the following principles from King III, applicable to risk management, could be replicated in the public sector environment.

King III states:

·         The Board should be responsible for the governance of risk;

·         The Board’s responsibility for risk governance should manifest into a documented risk management policy and plan;

·         The Board should determine the levels of risk tolerance;

·         The Board should be assisted by the risk committee or audit committee to carry out its risk responsibilities;

·         The Board should delegate to Management the responsibility to design, implement and monitor the risk management plan;

·         The Board should ensure that risk assessments are performed on a continual basis;

·         The Board should ensure that frameworks and methodologies are implemented to increase the probability of anticipating unpredictable risks;

·         The Board should ensure that Management considers and implements appropriate risk responses;

·         The Board should ensure continual risk monitoring by management;

·         The Board should receive assurance regarding the effectiveness of the risk management process; and

·         The Board should ensure that there are processes in place enabling complete, timely, relevant, accurate and accessible risk disclosure to stakeholders.






     Disclaimer