The concept of sustainability has become imperative for any organisation in order to survive and prosper in the long term. As such, the management of fraud risk has become an important component for organisations in order to achieve this objective. The purpose of this study was to explore the management of fraud risk within the South African private hospital sector. The study endeavoured to ascertain how private hospitals in South Africa manage fraud risk. In this regard, problem areas in the management of fraud risk were identified, and recommendations are provided in order to improve the management of fraud risk in the South African private hospital sector. Primary data was collected by means of survey research, which involved management staff at head office level and at hospital level, as these two groups were identified to have the required expertise and experience with regard to risk management procedures and practices within South African private hospitals. The findings suggested that South African private hospitals could improve their current risk management practices, in particular with regard to fraud risk. By implementing the recommendations provided by the study, private hospitals will be able to manage fraud risk more effectively. These recommendations will not only be beneficial to private hospitals, but will also have a positive effect on numerous external stakeholders, because the effective management of fraud risk could lead to considerable cost savings. The public hospital sector of South Africa would equally find the research findings and recommendations of value because it could also be applied to their fraud risk management practices. / Business Management / M. Com. (Business Management)

The occurence of procurement fraud requires from the management of the enterprise, the risk manager of the enterprise as well as the internal auditor to effectively address procurement fraud risks within the enterprise risk management concept. The purpose of the study is to set a procurement fraud risk management process in place which will serve as a comprehensive framework for the enterprise risk manager as well as the internal auditor to limit the enterprise's exposure to procurement fraud risks as far as possible. The study firstly focus on the analysis of the steps within the procurement process which is the starting point for the identification of the fraud risks. Secondly the enterprise risk management model is applied in the format of a procurement risk matrix within the procurement function. The study is an indication that procurement fraud cannot be completely prevented but that the appearance thereof can be limited by means of the extensive procurement fraud risk management model. Recommendations for future studies include the application of the enterprise risk management model in other functional areas within the enterprise. / Die voorkoms van aankoopbedrog vereis van die onderneming se bestuur, ondernemingsrisikobestuurder en interne ouditeur om aankoopbedrogrisiko's effektief binne die konteks van die ondernemingsrisikobestuurskonsep aan te spreek. Die doel van die studie is om `n aankoopbedrogrisikobestuursproses daar te stel wat as `n omvattende raamwerk vir die ondernemingsrisikobestuurder en interne ouditeur kan dien om die onderneming se blootstelling aan aankoopbedrogrisiko's so ver as moontlik te beperk. Die studie fokus eerstens op die ontleding van die stappe in die aankoopproses wat as vertrekpunt vir die identifisering van bedrogrisiko's dien. Tweedens word die ondernemingsrisikobestuursmodel in die vorm van `n aankoopbedrogrisikomatriks in die aankoopfunksie toegepas. Die studie dui daarop dat alhoewel aankoopbedrog nie volkome verhoed kan word nie, die voorkoms daarvan wel beperk kan word deur die toepassing van `n omvattende aankoopbedrogrisikobestuursmodel. Aanbevelings vir verdere studies sluit die toepassing van die ondernemingsrisikobestuursmodel op ander funksionele terreine van die onderneming in. / Auditing / M. Com. (Auditing)

Master of Agribusiness / Department of Agricultural Economics / Jeffery R. Williams / Economically optimized ration formulations were used to test whether California dairy producers who implemented price risk management strategies on both the input and output sides achieved significantly higher net returns as measured by milk income minus feed costs compared to producers who bought feed and sold milk on the spot market. Two ration formulation models were developed, a least cost and a profit-maximization. The least cost method formulates a ration that meets the nutritional requirements of a lactating cow at the lowest possible cost for a given level of milk production. The profit maximization model incorporates into its algorithm a production function between net energy intake and milk production that increases at a decreasing rate. For today's high producing cows, after being supplied with enough energy to meet maintenance requirements, all additional energy is partitioned for milk production. Up to a certain point, depending on the price of milk and the price of feed, the cost of providing additional feed units is more than offset by the revenues derived by the extra milk produced from the larger quantities of feed consumed. The profit-maximization model used formulates a ration using both feed and milk prices where the cost of the last unit of feed provided is equal to the revenues of the last unit of milk produced. To compare returns, a ration program was designed that could either use spot or forward values for feed costs and milk price to economically optimize the ration on a weekly basis in the cow’s milk production cycle. To better gauge the impact of price volatility on both the input and output sides and to account for the extended nature of the forward contracts, the 305-day lactation cycle of a high producing cow over six successive cycles was used. The federal order Class III milk price was used for milk values and it was assumed that unless the producer engaged in some sort of forward contract, the milk price received was the monthly Class III value. To account for forward sales, the Class III futures contract traded at the Chicago Mercantile Exchange was used. For the feed prices, the ration model had a library of 16 different ingredients, 11 of which had forward and spot values. Similar to the output side, it was assumed that unless the producer engaged in some sort of forward contract the feed price used was the spot value averaged for each month. Most California dairy operators use some version of the least-cost method when formulating their rations. A large number also forward contract a significant portion of their feed as the concept of forward contracting feed is much more common in the western U.S. as compared to other regions in the country. Conversely, there has been little interest in locking in future milk prices as the tools for forward contracting are relatively new and many producers are not familiar with the mechanics. This helps explain the limited use of the profit-maximization model since milk prices are an integral part of this process. Results of this study show that producers who formulate using the profit-maximization model attain higher milk production and derive higher milk revenues, albeit with higher feed costs. Nonetheless, across every situation, that is whether one forward contracts feed, milk, or some combination thereof the profit-maximization model returned anywhere from $0.14 to $0.19 of milk revenues in excess of feed costs per hundredweight of milk as opposed to the least-cost method. For a producer milking 1,000 cows this represents another $50,000 to $70,000 of income per year. The results also show that whether least-cost or the profit-maximization method is employed, feed costs were lower when producers forward contract at least a portion of their needs. Milk prices, on the other hand, were lower relying on the spot market as opposed to either of the two forward milk contracting models that were developed. Finally, the variability of returns as measured by the coefficient of variability show less volatility in revenues when producers forward contract milk and less variability with input costs when producers forward contract feed.

The worldwide aerospace industry is often characterised by major delays in development and delivery of large aircraft programmes. Suppliers often suffer financial losses and reputational damage as a result of underestimating project risks. This research investigates the quality of project risk management within one of the players in the South African avionics industry, Saab Grintek Defence (SGD). The research investigates the knowledge level, application of risk management principles and behaviour of project teams within SGD. The research study concluded that the quality of project risk management within SGD is of an average standard. The main contributor to project risks in SGD is time risk, followed by human resource risk. / Business Management / M.Com. (Business Management)

This dissertation discusses risk management in the context of software development. It commences by investigating why so many software development projects fail. It then focuses on approaches to software development that emerged as attempts to improve the success rate. A common shortcoming to these approaches is identified, namely that they only cater for the tasks that need to be done, ignoring possible unexpected problems. After having motivated the need for risk management, the framework for a risk management methodology is discussed, outlining the steps in the risk management process. Decision-making guidelines and best practices follow, as well as a discussion about the way they should be implemented as part of the risk management effort. Guidelines are provided for the implementation of risk management as part of software development. Finally, the risks that may cause the failure of the implementation of risk management are identified and guidelines provided to address them. / Computing / M. Sc. (Information Systems)

Risk culture is defined as norms of behaviour for individuals and groups that determine the collective ability to identify and understand, openly discuss and act on an organisation’s current and future possible risks. Although studies have been done on risk culture, an assessment of the maturity level of risk culture in a South African government organisation has not been reported in the academic literature. Many government organisations have implemented risk management processes but it seems that, subsequently, no tangible benefits have been realised from applying these processes. The reason for this might be that these organisations did not first embed a risk culture. This article assesses the risk culture maturity level of a South African government organisation. Data were gathered by developing and applying a questionnaire and a checklist. In addition, documents were analysed. The results show that the organisation has established basic risk management processes and structures; however, a mature risk culture was not embedded in the organisational processes.

A strong risk culture is critical for any organisation to manage its risks. Recent reports from the Auditor-General about a South African government institution (Auditor General of South Africa, 2014) demonstrated that its risks were not being adequately mitigated. The purpose of the study reported on here has therefore been to put this judgement to the test and, because no recognised instrument could be found to evaluate the risk culture, an instrument was developed. Many of the risk culture assessment frameworks available have been developed by consulting companies which could be of value to organisations however this study chose to focus mainly on academic literature. In this descriptive study we used a focus group to identify the possible strengths and weaknesses of the prevailing risk culture, following which a questionnaire was designed and used to assess the current risk culture of the organisation. The results were used to evaluate the risk culture with the aim of proposing steps in which to embed a risk culture. We found that the existing risk culture does not contribute to this organisation’s capacity to manage its risks. We also found that managers in this organisation are not encouraged to take risks to achieve their objectives and employees are not held accountable for the management of risks. In agreement with previous studies which found that training in risk management is important, this study suggests that training should be compulsory for all senior management. This study also found that factors of tone at the top, accountability, communication, risk competence and risk capacity are critical to embed a risk culture in an organisation. This study contributes to the existing literature by suggesting ways in which a risk culture could be embedded in an organisation. The results of this research could be useful to organisations, boards, and risk committees.

Risk culture is defined as norms of behaviour for individuals and groups that determine the collective ability to identify and understand, openly discuss and act on an organisation’s current and future possible risks. Although studies have been done on risk culture, an assessment of the maturity level of risk culture in a South African government organisation has not been reported in the academic literature. Many government organisations have implemented risk management processes but it seems that, subsequently, no tangible benefits have been realised from applying these processes. The reason for this might be that these organisations did not first embed a risk culture. This article assesses the risk culture maturity level of a South African government organisation. Data were gathered by developing and applying a questionnaire and a checklist. In addition, documents were analysed. The results show that the organisation has established basic risk management processes and structures; however, a mature risk culture was not embedded in the organisational processes.

A strong risk culture is critical for any organisation to manage its risks. Recent reports from the Auditor-General about a South African government institution (Auditor General of South Africa, 2014) demonstrated that its risks were not being adequately mitigated. The purpose of the study reported on here has therefore been to put this judgement to the test and, because no recognised instrument could be found to evaluate the risk culture, an instrument was developed. Many of the risk culture assessment frameworks available have been developed by consulting companies which could be of value to organisations however this study chose to focus mainly on academic literature. In this descriptive study we used a focus group to identify the possible strengths and weaknesses of the prevailing risk culture, following which a questionnaire was designed and used to assess the current risk culture of the organisation. The results were used to evaluate the risk culture with the aim of proposing steps in which to embed a risk culture. We found that the existing risk culture does not contribute to this organisation’s capacity to manage its risks. We also found that managers in this organisation are not encouraged to take risks to achieve their objectives and employees are not held accountable for the management of risks. In agreement with previous studies which found that training in risk management is important, this study suggests that training should be compulsory for all senior management. This study also found that factors of tone at the top, accountability, communication, risk competence and risk capacity are critical to embed a risk culture in an organisation. This study contributes to the existing literature by suggesting ways in which a risk culture could be embedded in an organisation. The results of this research could be useful to organisations, boards, and risk committees.

Over recent years, community resilience has been increasing in popularity as a topic for detailed study. During that time, academic researchers have been working to untangle the complex network of social relationships that define the concept. In parallel, some institutions have set the achievement of enhanced community resilience as a policy goal. This research has sought to assist in both areas: first, by contributing to the academic debate and second, to build a clearer understanding of how institutions can tailor policies to ensure success in their goal of enhancing community resilience. A case study approach was adopted for the research, centring on three communities in the Teign Estuary of South Devon (Newton Abbot, Teignmouth and Shaldon). All three communities were vulnerable to tidal flooding and links between the communities and institutions responsible for managing flood risk (FRM framework) were analysed. In the analysis, a specific form of social capital was studied: social capital derived from community-institution links (CISC). CISC was found to be effective in revealing links with the greatest potential to enhance the resilience of communities against flood risks. To assess resilience at the individual and community level, a maturity based model was used. The assessment found disparities between how resilience matures at the community level compared to the individual level. Specifically, resilience maturity in communities was revealed as a less linear process. As such, the case study communities were able to exhibit traits associated with low resilience maturity at the same time as exhibiting traits associated with high resilience maturity. This research concluded that the UK FRM policy framework was robust, aligning well with academic theory. However, the FRM system was revealed as being dominated by expert elites. These elites are mainly public sector based and were judged to be stifling the engagement of the private sector at the local level. To enhance their resilience, this study determined that communities need to investment in CISC, but that investment must not just be targeted at public sector FRM institutions alone, it also needs to target private sector FRM institutions.