BANKSETA ANNUAL REPORT 2023

BANKSETA GOVERNANCE STRUCTURE

Risk Management The Board approved the Risk Management Policies, Strategy and Implementation Plan to guide BANKSETA on the effective implementation of its risk management system. Risk management has been adopted as a crucial governance requirement to address all factors that may hinder or prevent BANKSETA from achieving its objectives, and/ or factors that present opportunities to enhance BANKSETA performance. A Risk Management Committee has been established, chaired by an independent Chairperson, and reports quarterly to the Audit and Risk Committee. The Accounting Authority, assisted by the Audit and Risk Committee, Risk Management Committee, Management and Risk and Compliance Unit, is committed to the optimal management of risk to achieve the SETA’s vision, mission, objectives, strategies and plans and to protect its core values. The Accounting Authority has committed BANKSETA to implement risk management aligned to the principles of good corporate governance, supported by legislation and leading practice. Risk assessments to determine the effectiveness of its risk management strategy and to identify new and emerging risks BANKSETA conducted the annual risk assessment within various business units, to determine the effectiveness of its risk management policy and identify new and emerging risks. These resulted in the revised strategic and operational risk registers as well as Fraud risk register being realigned to focus on the new identified risk mitigation strategies. The strategic and operational risk registers were monitored throughout the financial year and quarterly reports provided to risk management committee, audit and risk committee and the Board. Risks are identified and management developed and committed to implement actions to mitigate the risks to an acceptable level. The Board established a Risk Management Committee chaired by an independent chairperson. The Committee reported to the board via the Audit and Risk Committee on a quarterly basis. This ensured effective risk management and a high level of independency. The Head of Risk and Compliance attends meetings and provides reports to governance structures. Risk management and mitigation

Advice on risk management and independently monitoring of the effectiveness of the system of risk management The Head of Risk and Compliance reports quarterly to the Risk Management Committee and Audit and Risk Committee. These committees are established to assist the Board to oversee the effectiveness of the risk management system. The Audit and Risk Committee, through quarterly monitoring of the Risk Management Implementation Plan, provides independent assurance to the Board of BANKSETA’s effective risk management system. Progress in the management of risks, and its transmission into improvements in the BANKSETA’s performance Through its Risk Management Strategy, BANKSETA has adopted a standard approach to enterprise risk management to ensure that all risks that could affect its strategic outcomes, people, reputation, strategy, business processes and systems, financial and environmental performance are identified, assessed and maintained at an acceptable level to enhance organisational performance. INTERNAL CONTROL UNIT BANKSETA has established a MANCO (management committee), which comprises all managers of BANKSETA and the CEO as the Chairperson. MANCO convenes periodically and on an ad hoc basis, to discuss and deliberate on matters, such as policies, strategies and operational documents and processes, before items are processed to the Board and Committees. Resolutions from the Board and Committees are tabled at MANCO to ensure effective communication, implementation and accountability. An ICT Steering Committee was also established, which comprises management, and is chaired by an independent Chairperson. The ICT Steering Committee oversees IT governance, convenes on a quarterly basis and reports to the Audit and Risk Committee. All ICT governance matters, including ICT policies, strategies and plans are processed through the ICT Steering Committee, and resolutions from Board and the Audit and Risk Committee related to ICT are tabled at this committee to ensure implementation and accountability.

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PART C: GOVERNANCE | BANKSETA ANNUAL REPORT 2022/23