LIMPOPO GAMBLING BOARD A/REPORT 2022/23

5. Risk Management

5.1 Nature of Risk Management

The 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, had in place the Risk Management Strategy, Policy and Charter that ensured adherence to the provisions of the PFMA, Act 1 of 1999, and other prescripts of good governance. The Chief Executive Officer had appointed a Risk and Fraud Management Committee and their role was to formulate, promote and review the institution’s ERM objectives, strategy and policy, and to monitor the process at strategic, management and operational levels. The Risk and Fraud Management Committee met 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 continued to cultivate a culture of Risk Management throughout the Entity which: • Ensured compliance with section 51 of the Public Finance Management Act, and Treasury Regulation 27.2; • Promoted and entrenched Risk Management as value creation; • Improved the LGB’s risk maturity from a defensive Risk Management position to a responsive Risk Management position; and • Embedded Risk Management into LGB’s business operations to support decision making and thereby increased the likelihood of achieving the LGB’s strategic objectives. An Entity-wide Enterprise Risk Management (ERM) framework was adopted by Limpopo Gambling Board and applied across the entire LGB from a strategic level down to operational and business process levels. The Limpopo Gambling Board maintained a Risk Profile which was updated on a quarterly basis or as and when it was needed. This was preceded by a process of the Risk Management Office which performed risk assessments with the risk owners and all staff members during workshops by 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. 5.2 Risk Management Process

LIMPOPO GAMBLING BOARD

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