140945 Limpopo Gambling Board AR DRAFT 7

5. Risk Management

Nature of Risk Management

5.1

The Board of Directors, through its Audit and Risk Committee, provides an oversight role on the effectiveness and efficiency of the Entity’s Risk Management System in alignment with the implementation of the Five-Year Strategic Plan. The Entity is committed to an enterprise-wide risk Management process that is in accordance with the provisions of the PFMA, Act 1 of 1999 and aligned to best international practices (ISO 31 000:2009, COSO Framework, King IV Report on Corporate Governance in South Africa, 2016, Public Sector Risk Management Framework and Provincial Risk Management Framework). The Entity recognises Risk Management as an integral part of responsible management and the process is fully outlined in the Risk Management Policy. The Risk Management function of the Limpopo Gambling Board, which is within the Office of the CEO, has in place the Risk Management Strategy, Policy and Charter that ensures adherence to the provisions of the PFMA, Act 1 of 1999, and other prescripts of good governance. The Chief Executive Officer has appointed a Risk and Fraud Management Committee and its role is to formulate, promote and review the institution’s ERM objectives, strategy and policy, and also to monitor the process at strategic, management and operational levels. The Risk and Fraud Management Committee meets quarterly to evaluate the effectiveness of mitigating strategies to address the material risks of the institution and to monitor the progress on the implementation of these strategies. The Limpopo Gambling Board has continued to cultivate a culture of Risk Management throughout the Entity by: • Ensuring compliance with section 38 and 51 of the Public Finance Management Act, and section 27.2 of the Treasury Regulations; • Promoting and entrenching Risk Management as value creation; • Improving the LGB’s risk maturity from a defensive Risk Management position to a responsive Risk Management position; and • Embedding Risk Management into LGB’s business operations to support decision making and thereby increasing the likelihood of achieving the LGB’s strategic objectives. The Chief Executive Officer has set the tone at the top by supporting Enterprise Risk Management and allocating human and financial resources towards the implementation thereof.

Risk Management Process

5.2

An Entity-wide Enterprise Risk Management (ERM) framework is adopted by Limpopo Gambling Board and applied across the entire LGB from a strategic level down to operational and business process levels.

Limpopo Gambling Board maintains a Risk Profile which is updated on a quarterly basis or as and when

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