Control risk to succeed, Prof Ncube tells parastatals

Harare (New Ziana) – Risk Management is a key element of corporate governance in public sector organizations, and a cornerstone for strategic and operational success, a cabinet minister said on Wednesday.

Minister of Finance, Economic Development and Investment Promotion Professor Mthuli Ncube made the remarks while launching the Risk Management Frameworks and Guidelines for the public sector in the capital.

The framework is aimed at enhancing transparency and accountability in government ministries, departments and agencies (MDA’s).

It seeks to develop a risk management strategy, which provides for a fraud prevention plan while also determining any changes to systems, processes and staff skills to improve controls and manage risks.

Ncube said the purpose of the framework is to provide a consistent approach for the government to develop Institutional Risk Management Frameworks and processes for efficient and effective management of risks throughout the public sector.

“The first concern is our reputation. Each MDA should be concerned about its standing as it impacts on the government’s image. As such, the quality of our services to the people is of paramount importance,” he said.

“The second concern is our people. Much of our work is about enhancing service delivery to the people of Zimbabwe, therefore, all that we do must have an impact on the well-being of the citizens, hence the need to prioritize risk management,” he said.

Ncube added that also of concern was financial prudence in organisations and said the funds that the government uses are public funds and this required transparency and accountability.

He said MDA’s are required to have risk management policies that are modelled along ISO 31000 and seek to improve their current practices in risk management.

“The framework also takes cognisance of the Public Finance Management Act (Chapter 22:19), other Acts of Parliament, and various regulatory publications that regulate governance and guide on Risk Management practices and expectations in Government,” he said.

Ncube challenged the Public Service Commission to champion Risk Management training through its academy, and also urged Accounting officers through Audit Committees to carry out the oversight role with commitment and dedication which will enhance governance and reduce the number of audit flaggings.

“There is no doubt that the implementation of this framework is paramount to the country’s economic recovery and achievement of vision 2030.

“Risk management, coupled with robust internal control systems and effective audit are fundamental for safeguarding taxpayers’ money, ensuring accountable governance and integrity, as well as preserving public trust,” said Ncube.
New Ziana