BANKSETA AR 31 AUGUST

BANKSETA GOVERNANCE STRUCTURE

Risk Management The Board approved the 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. 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 risk management aligned to the principles of good corporate governance, supported by legislation and leading practice. The Board approved the following in the financial year: • Risk Management Policy, Strategy and Implementation Plan • Compliance Management Framework, Policy and Plan • Anti-Corruption Policy, Whistleblowing Policy and Ethics Policy • Combined Assurance Framework and Plan • Strategic risk register 2021/22 Risk Assessments to Determine Effectiveness of Risk Management Strategy and Identify New and Emerging Risks BANKSETA has conducted strategic and operational risk assessments annually and presents risk registers to the Risk Management Committee and Audit and Risk Committee for adoption. Strategic and operational risk registers are monitored and reports are presented quarterly to the Risk Management Committee and Audit and Risk Committee. Emerging risks are identified and management develops and implements plans to mitigate these risks to an acceptable level.

Risk Management and Mitigation

The Board has established a Risk Management Committee chaired by an independent chairperson. The Risk Management Committee reported to the Board via theAudit and Risk Committee on a quarterly basis. This will maintain effective risk management and a high level of independency. The Head of Risk and Compliance attends meetings and provides reports to the various governance structures. Advice on Risk Management and Independent 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 committee are established to assist the Board to oversee the effectiveness of the risk management system of BANKSETA. 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 Risk 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 people, reputation, strategy, business processes and systems, financial and environmental performance are identified, assessed and maintained at an acceptable level by: • Incorporating a consistent approach to risk management into the culture and strategic planning processes of BANKSETA, supporting the setting of priorities and making of decisions at all levels; • Applying a consistent approach to risk response and control activities to support BANKSETA’s governance responsibilities for innovation and responsible risk-taking, policy development, programmes and objectives. In all cases, measures are put in place to address unfavourable impacts from risks and favourable benefits from opportunities.

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PART C: GOVERNANCE | BANKSETA ANNUAL REPORT 2021/22