Guiding Criteria for an Operational Risk Management Framework for South African Municipalities

Abstract

Risk management forms a crucial part of the management of an organisa-tion. Due to the increasing misconduct and mismanagement of organisa-tions in developing countries, it is imperative to embed a risk management framework to assist management to be effective and prevent risk incidents from occurring. However, it is imperative that the components of a risk management framework be clearly defined and embedded in the organisa-tion. This article investigates various views and approaches with the aim to identify criteria for the implementation of an operational risk management framework. These criteria could be used to determine how an organisation can embed a risk management framework, which can assist in the effec-tive management of risks. The conclusions and recommendations of this study may also be applicable to any level of government as well as private organisations. In addition, the criteria can serve as a checklist to establish the status of implementation of a risk management framework and to assist in bridging a potential gap between current and best practices.