Sign In

King III Report on Corporate Governance


The spirit of the following principles from King III, applicable to risk management, could be replicated in the public sector environment.

King III states:

·     The Board should be responsible for the governance of risk;

·     The Board’s responsibility for risk governance should manifest into a documented risk management policy and plan;

·     The Board should determine the levels of risk tolerance;

·     The Board should be assisted by the risk committee or audit committee to carry out its risk responsibilities;

·  The Board should delegate to Management the responsibility to design, implement and monitor the risk management plan;

·     The Board should ensure that risk assessments are performed on a continual basis;

·  The Board should ensure that frameworks and methodologies are implemented to increase the probability of anticipating unpredictable risks;

·     The Board should ensure that Management considers and implements appropriate risk responses;

·     The Board should ensure continual risk monitoring by management;

·     The Board should receive assurance regarding the effectiveness of the risk management process; and

·  The Board should ensure that there are processes in place enabling complete, timely, relevant, accurate and accessible risk disclosure to stakeholders.

© Maintained by the National Treasury. All Rights Reserved.