CAV Annual Report 2021

2. RISK MANAGEMENT The CAV’s board of directors is responsible for the total process of risk management, as well as for forming its own opinion on the effectiveness of the process. Executive Management is accountable to the board for designing, implementing and monitoring the process of risk management and integrating it into the day-to-day activities of the CAV. The Board is taskedwith overseeing themanagement team in executing policies and procedures which seek to ensure the integrity of the CAV’s risk management and internal controls, as well as maintaining and monitoring the organisation’s systems of internal control and risk management. The ultimate outputs of any business risk identification exercise are to: • Identify and prioritise business risks that have the highest potential to impact (positively or negatively) on the achievement of the company’s strategic objectives. The following has been identified as the Top 7 Risks for CAV. RISK CATEGORY 1. Strategy Planning, Monitoring and Evaluation: 1.1. Inadequate leadership recruitment; selection and retention across all levels in the organisation. 1.2. Lack of certainty regarding the sustainability of the organization. 2. Information and Communication Technology Management 2.1. Inadequate ICT Infrastructure and capacity. .

• Provide a valuable tool and reference source for management, assisting them with identifying and/or managing strategic risks including financial, operational, compliance and reputational risks; and • Provide an assessment of the risk profile, which will usually form the basis for on-going review that will assist with: -- The determination of the proposed focus of a detailed risk management approach (i.e. risk management plan) for the organisation; and -- The development and rollout of controls and an action planning process to address an appropriate risk response / amelioration strategy for significant risks. CAV acknowledges the definition of “risk” as the chance of an event or outcome happening in the future that may have an adverse impact or effect on the Company.

MITIGATING ACTIONS

• Implement appropriate performance evaluation system for all levels of leadership including the Board. • Secure interim capital funding from the dtic until completion of potential GGDA incorporation.

• Implementation of ICT strategy and systems architecture. • Appointment of ICT service provider for document management system. • Procurement of ICT cabling infrastructure and server for the ATCC facility. • Investigate Cloud based solutions as a backup solution. Cyber security plan including firewall, anti-virus package, email security and encryption. • Benchmarking of the finance function to similar type organization. • Filling of vacant positions in the finance division.

3. Financial Management 3.1. Inadequate financial management within the organization.

4. Human capital management 4.1. Inadequate talent management

• Ensure the implementation of the Talent Management Strategy and Plan. • Study support to be provided in line with HR policies. • Outline a Succession Planning Roadmap for the organization. • Job Grading assessment of all positions.

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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