CCMA ANNUAL REPORT

Commission for Conciliation, Mediation and Arbitration Annual Report 2022/23

The 2022/23 Business Continuity Management (BCM) Implementation Plan was fully implemented, resulting in the review and approval of BCM plans and the rollout of the BCM Maturity Roadmap throughout the organisation. The BCM governance documents were also reviewed to ensure that the governance culture relating to BCM processes remained relevant. As at the end of the 2022/23 financial year, the CCMA maintained a partially implemented BCM maturity level three (3). The ARC continued to provide oversight over the CCMA’s ERM Function by monitoring the effectiveness of the CCMA’s risk management processes. The ERM function reported quarterly to the ARC on all its activities and functionality, including the risk maturity of the organisation. The ARC also exercised stringent oversight over the CCMA’s ERM Risk Profile by monitoring the risk appetite and tolerance levels set by the Governing Body during the 2022/23 financial year; ensuring that the CCMA’s ERM remained within acceptable levels. During the financial year under review, the National Management Committee and Executive Risk Management Committee were operational as planned. The mandates of these Committees are to assist the ARC in discharging its oversight responsibility for the adequacy of the CCMA’s ERM function. The National Treasury Financial Management Capability Maturity Model is used to assess the CCMA’s risk management maturity level, monitoring progress in implementing enterprise-wide risk management within the organisation. During the 2022/23 financial year, the CCMA has maintained a five (5) risk maturity level rating, meaning that the CCMA has an optimised risk maturity level with a focus on embedding a risk culture across the organisation. The ERM’s efforts during the 2022/23 financial year have resulted in the mitigation of the CCMA’s main inherent risks that the CCMA was exposed to, thus contributing towards reducing the residual risk exposure to be within acceptable levels. The Risk Management function participated in implementing the combined assurance plan and closely monitored the top risk recorded on the plan. There was an audit conducted by internal audit on risk management processes through the Corporate Governance Audit, but no auditing findings were registered for Risk Management. However, one (1) internal audit process on Business Continuity Management issues was raised that management noted and addressed. 10. COMPLIANCE WITH LAWS AND REGULATIONS The CCMA is committed to a philosophy of Integrated Compliance Risk Management as a core managerial capability, which is aligned with the principles of the King IV Report, the standards set by the Compliance Institute of South Africa, and the legislative requirements of the PFMA. As at the end of the 2022/23 financial year, the CCMA maintained an optimum compliance maturity level five (5). The Compliance Management Unit (CMF) is fully functional at identifying strategic and operational compliance gaps through its compliance policies, frameworks, and manual and implementation plans developed, approved and implemented. Due to the enterprise-wide approach to CMF, Compliance Champions were appointed across all departments and provinces to cascade down and integrate compliance principles at the business unit level. The CCMA’s 2022/23 Compliance Regulatory Universe had 50 pieces of legislation that identified what the CCMA must comply with, with the application of the Risk Management Model statistically identifying the top 20 statutes. High-risk statutes were identified, monitored and evaluated more regularly to minimise reputational damage, litigation, fines and penalties, and possible loss of an unqualified audit. Stringent testing was conducted on the identified high-risk statutes through Compliance Risk Management Plans, with conformance testing conducted on compliance with policy and procedures. The ARC exercised stringent oversight over the CCMA’s CMF d uring the 2022/23 financial year to ensure its functionality and adequacy.

90