Municipalities should establish the Risk Management Committee and be chaired by an independent Chairperson. The Risk Management Committee should operate within a Risk Management Charter that needs to be approved by the Executive Committee.
The Risk Management Committee is responsible for independent oversight and appropriate advice on the risk management process, mitigation of key risk exposure and the emerging risks that may have an impact on the Municipality. The Committee‘s role is to guide the development and implementation of Risk Management programme as well as to review and monitor Enterprise Risk management (ERM) process and outputs regularly.


By appointing the Accounting Officer, Council has a major role in defining what is expects in integrity and ethical values and can confirm its experiences through oversight activities. By reserving authority in certain key decisions, the Council plays a role in setting strategy, formulating high level objectives and broad based resource allocation. The executive authority provides oversight with regard to risk management by;
Being aware of and concurring with the Municipality’s risk appetite; Reviewing the Municipalities ‘risk portfolio and considering it against the Municipality’s risk appetite ; and understand the priority risks.


The Audit Committee should be active and possess an appropriate degree of management, technical, and other expertise, coupled with the mind-set necessary to perform its oversight responsibility.
It should provide oversight to the municipality’s risk management process and it should be aware of and concur with the municipality’s risk appetite.
The Audit Committee members should be independent outside members.

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