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 / MCOM (Business Management)

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 purpose of this study is to investigate the role of Operational Risk Management (ORM) in the successes of Small Medium Enterprise (SME’s) and to establish whether ORM has a direct correlation to the survival rate of SME’s, which have been operational for a minimum period of five years. The study was limited geographically to Gauteng South Africa, in particular the Kya Sands Industrial area. The South African Government is focusing on promoting small business to reduce the high unemployment rate and to increase the growth of the economy through developing SME’s. Statistics states that South Africa currently has an unemployment rate of 25.5 per cent, in the third quarter of 2015 (Statistic South Africa, 2015), which is the worst rate since the first Labor Forces Survey in 2008. It is well known that SME’s contribute significantly to the world’s economy. After conducting a significant literature review, it was found that no applicable research has been done globally or locally regarding ORM in SME’s as per NG & Kee (2012). Most research in ORM is focused on large organisations, specifically the banking industry. The need for this study arose as literature reviews reveals a high rate of SME failures, regardless of various financial assistance programs from Government for starting and assisting SME’s. In determining the impact of ORM by addressing the high probability of failure of SME’s in emerging markets this research will be the first step in determining the value and trajectory of additional insights for SME sustainability . Thus ORM could indirectly provide assistance in undertaking and addressing the unemployment and economic freedom challenges in South Africa. This is unique and new knowledge generating ground breaking finding s as ORM was not regarded nor researched, as a critical contributing success factor for smaller companies. This research had a positive approach and was of a quantitative and exploratory nature to investigate the research question and problem statements. The research instrument was a self-designed semi-structured enumerated questionnaire. Personal ii interviews were conducted with willing participants in order to obtain first hand data. This was an avant-garde study. The results based on the facts and perception of the owners and managers indicated the extent of implementation of ORM in the various business departments of the SME’s. It was found that ORM is a contributing factor regarding the success of SME’s. As a result, the main research problem and sub- problems were answered. Therefore ORM definitely plays a vital role in the survival rate of a SME and can be regarded as a critical success factor for SME’s if implemented and managed. Through identifying the facts and perceptions of the owners and managers of SME’s regarding ORM, further research can be conducted to identify the extent that ORM can have on the SME’s successes. / Graduate School of Business Leadership (SBL) / M.Tech. (Business Administration)

The risk of climate change has gained prominence globally and also in South Africa. Companies operating in developing countries such as South Africa are perceived to be particularly vulnerable to climate change. There have been mixed reactions to this risk by companies ranging from inaction to significant financial outlays expended on mitigating this risk. Whilst climate change is potentially a downside risk to financial performance, certain companies have identified opportunities to enhance their returns in the course of adapting to climate change. This study assessed whether there is a relationship between climate change and the financial performance, as manifested in the mitigation of risks and exploitation of opportunities of selected South African companies. The study sought to establish the extent to which climate change creates relevant and material risks, returns and opportunities for companies. The study was conducted using a combination of a literature review and empirical research in the form of secondary analysis. Data on climate-change performance, risks and opportunities was compared to data on financial indicators. The population of companies selected for the empirical research consisted of the Johannesburg Stock Exchange-listed companies that had publicly disclosed information to the Carbon Disclosure Project (CDP) in 2012. Climate-change data was categorised to differentiate between varying levels of climate-change performance, and the identified categories were compared to a range of ratios that demonstrated financial return. The research concluded that climate-change risks and opportunities are expected to have a significant and highly likely impact on company operations, revenue and expenditure. Positive and statistically significant correlations were identified between climate-change performance and equity analyst recommendations, historical internal rates of return, market values to book values, forecasted earnings per share, beta coefficients, and return on equity. Climate-change performance was not found to have a significant effect on the cost of capital. / Management Accounting / M. Com. (Accounting)

The risk of climate change has gained prominence globally and also in South Africa. Companies operating in developing countries such as South Africa are perceived to be particularly vulnerable to climate change. There have been mixed reactions to this risk by companies ranging from inaction to significant financial outlays expended on mitigating this risk. Whilst climate change is potentially a downside risk to financial performance, certain companies have identified opportunities to enhance their returns in the course of adapting to climate change. This study assessed whether there is a relationship between climate change and the financial performance, as manifested in the mitigation of risks and exploitation of opportunities of selected South African companies. The study sought to establish the extent to which climate change creates relevant and material risks, returns and opportunities for companies. The study was conducted using a combination of a literature review and empirical research in the form of secondary analysis. Data on climate-change performance, risks and opportunities was compared to data on financial indicators. The population of companies selected for the empirical research consisted of the Johannesburg Stock Exchange-listed companies that had publicly disclosed information to the Carbon Disclosure Project (CDP) in 2012. Climate-change data was categorised to differentiate between varying levels of climate-change performance, and the identified categories were compared to a range of ratios that demonstrated financial return. The research concluded that climate-change risks and opportunities are expected to have a significant and highly likely impact on company operations, revenue and expenditure. Positive and statistically significant correlations were identified between climate-change performance and equity analyst recommendations, historical internal rates of return, market values to book values, forecasted earnings per share, beta coefficients, and return on equity. Climate-change performance was not found to have a significant effect on the cost of capital. / Management Accounting / M. Com. (Accounting)

The impact of climate change on the financial performance of companies is of concern to bank credit processes. The main objective of this research was to develop a South African contextualised credit process that incorporates environmental risk. The research methodology comprised of a mixed-method being content analysis – the qualitative portion and the Probability of Default prediction using a Merton Model and the Hoffmann and Busch (2008) carbon risk analysis model - the quantitative portion. A content analysis of the banks’ Annual Reports, Integrated Reports and Sustainability Reports showed that, while South African banks follow a qualitative approach to embedding environmental risk into their credit process, none of the four banks that formed part of the study divulged their quantitative approach to embedding environmental risk. The study used a proximity matrix method to examine the level of embedding. The second part of the study, which used prior studies as the benchmark, adopted the following: (1) a simulated carbon tax regime as a proxy for an environmental risk, and (2) the Hoffmann and Busch (2008) carbon risk analysis tool and the Merton Model (1974) as the bank credit process proxies. The second part of the study used a sample of 33 JSE-listed Carbon Disclosure Project reporting companies out of a population of 107. The carbon risk analysis showed that the companies in the materials and energy sector have a high carbon risk. However, the results from the Merton Model showed that the companies have enough profit to cushion the additional carbon tax liability, given the insignificant shift in probability of default between the three scenarios, where financial data had (1) no carbon tax, (2) was adjusted for a carbon tax with incentives, and (3) adjusted for carbon tax without incentives. Triangulation of the results from the content analysis, carbon risk analysis and the probability of default analysis confirms that South African banks do not fully integrate environmental risk across the credit value chain or process in the 2010 to 2017 period. However, the carbon risk analysis shows a heavy dependency on carbon sources for critical inputs into the South African companies’ production processes, which if not checked, will affect the credit portfolios of banks. / Finance, Risk Management and Banking / D. Phil (Management Studies)

Abstract in English, Zulu and Sepedi / The purpose of this study was to determine the impact of capital structure on the profitability of the Land and Agricultural Development Bank of South Africa (Land Bank). Both theoretical and empirical literature were reviewed in order to guide the empirical investigation of this study. In particular, the theories of financial intermediation, credit creation and fractional reserve formed the basis of this study. The capital structure theories that were examined included the pecking order theory, trade-off theory and Modigliani-Miller leverage irrelevance theory. In the literature, it was observed that profitable companies prefer using internal funds over debt or equity. To test the stated hypothesis that there is no relationship between capital structure and bank profitability, a quantitative research design with a case study approach was used, with the Land Bank as the unit of analysis. Using time series data for the period 1982 to 2015, multiple regression using the ordinary least squares method was applied to test the specified models. Preliminary data analysis was performed using trend analysis, descriptive statistics and Pearson bivariate correlation analysis. The study demonstrated that the relationship between capital structure and bank profitability was positive and statistically significant at a 95% confidence level when using only equity. However, inclusion of debt in the capital structure showed that capital structure, proxied by the debt-to-equity ratio, resulted in a negative relationship between capital structure and bank profitability, albeit statistically insignificant. It was concluded that the Land Bank requires an injection of equity to improve its performance. Alternative low-cost sources of funding to debt should be considered. The results of the study have policy implications for the Land Bank, regulators and potential investors. / Injongo yalolu cwaningo kwabe kuwukucubungula nokuthola umthelela wesimozimali sebhizinisi ekungeneni kwenzuzo eBhange Lokuthuthukiswa Komhlaba Nezolimo laseNingizimu Afrika (iBhange Lomhlaba). Kokubili, imibhalo yethiyori kanye nemibhalo esuselwe emaqinisweni abonakalayo naphathekayo, yabuyekezwa ukuze ihole futhi ilawule uphenyo olugxile emaqinisweni abonakalayo naphathekayo oluqondene nalolu cwaningo. Amathiyori ayisisekelo salolu cwaningo, ikakhulukazi, kwaba yi-financial intermediation, credit creation kanye ne-fractional reserve. Lawo mathiyori esimozimali sebhizinisi acutshungulwa abandakanya i-pecking order theory, trade-off theory kanye ne-Modigliani-Miller leverage irrelevance theory. Emibhalweni eyacutshungulwa, kwabonakala ukuthi izinkampani ezinenzuzo zincamela ukusebenzisa izimali zangaphakathi kunokusebenzisa isikweletu noma izabelokulingana (equity). Ngenhloso yokuhlola ihayiphothesisi ethuliwe yokuthi abukho ubudlelwano phakathi kwesimozimali sebhizinisi kanye nokungena kwenzuzo ebhange, kwasetshenziswa idizayini yocwaningo olukhwantithethivu ehambisana nendlela yokusebenzisa ucwaningo lwesigameko egxile ekuhlaziyweni kweBhange Lomhlaba. Ngokusebenzisa i-time series data yesikhathi esisukela kowe-1982 kuyofinyelela kowezi-2015, kwalandelwa i-multiple regression ngokusebenzisa i-ordinary least squares method ukuhlola amamodeli achaziwe. Uhlaziyo lwedatha olwandulelayo lwenziwa ngokusebenzisa uhlaziyo lwezimonkambiso (trend analysis), izibalomanani ezichazayo (descriptive statistics) kanye ne-Pearson bivariate correlation analysis. Ucwaningo lwabonisa ukuthi bukhona ubudlelwano obuphawulekayo phakathi kwesimozimali sebhizinisi kanye nokungena kwenzuzo ebhange futhi idatha yabonisa ukuthembakala okusezingeni elingama-95% uma kusetshenziswa izabelokulingana kuphela. Kodwa-ke ukufakwa kwesikweletu kwisimozimali sebhizinisi kwabonisa ukuthi isimozimali sebhizinisi, ngokusekelwa yizinga-silinganiso phakathi kwesikweletu nezabelokulinganisa, kwaholela ekutheni bungabi khona ubudlelwano obuphawulekayo phakathi kwesimozimali sebhizinisi kanye nokungena kwenzuzo ebhange, nakuba idatha mayelana nalokhu yabonisa ukungathembakali okuthile. Kwafinyelelwa esiphethweni sokuthi iBhange Lomhlaba lidinga ukuthi kufakwe izabelokulingana ngenhloso yokwenza ngcono ukusebenza kwalo. Kumele kwenziwe imizamo yokuthola eminye imithombo yezimali ehlukile futhi engambi eqolo. Imiphumela yocwaningo inemithelela ethile ephathelene nezinqubomgomo eqondene neBhange Lomhlaba, abalawuli kanye nalabo okungenzeka babe nesifiso sokutshala izimali. / Morero wa thutelo ye e be e le go laetša khuetšo ya matlotlo a kgwebo go bokgoni bja go hwetša dipoelo bja Panka ya Tlhabollo ya Naga le tša Temo ya Afrika Borwa (Land Bank). Dingwalo tša ditlhalošo tša diteori le tšeo dithutelo tša peleng di di hweditšeng di sekasekilwe go fa tlhahlo go dipoelo tša dinyakišišo tšeo di dirilwego peleng tša thutelo ye. Gabotsebotse, diteori tša mokgwa wa dipanka wa go tšea tšhelete ye e bolokilwego tša e adimiša, mokgwa wa dipanka wa go hlola dikadimo ka bontši le tsheketšo ya palophatlo ya tšhelete di bopile motheo wa thutelo ye. Diteori tša matlotlo a kgwebo tšeo di lekotšwego di akareditše teori ya mokgwa wa go kgetha methopo ya kadimo ya ditšhelete, teori ya go lekanyetša ditheko le ditefelokholego le teori ya Modigliani-Miller ya go re mokgwa wa go diriša tšhelete ye e adimilwego go bona dipoelo ga o ame boleng bja khamphani. Ka go dingwalo, go lemogilwe gore dikhamphani tše di ka hwetšago dipoelo di kgetha go diriša matlole a ka gare go ena le dikoloto goba bokaalo bjo bo šalago ka morago ga go ntšha dikoloto Go leka kakanyo ye e filwego ya gore ga go na tswalano gare ga matlotlo a kgwebo le bokgoni bja panka bja go hwetša dipoelo, tlhako ya nyakišišo ya go hwetša dikarabo go batho ka bontši ka mokgwatebelelo wa nyakišišo ye e dirilwego ka ga tiragalo e dirišitšwe, ka Land Bank bjalo ka yuniti ya tshekatsheko. Ka go diriša datha go ya ka tatelano ye e itšeng ya nako ya paka ya 1982 go iša go 2015, tlhahlobo ya tswalano gare ga mabaka a mabedi goba go feta ka go diriša mokgwa wa go fokotša palo ya disekwere e dirišitšwe go leka mehlala ye e šupilwego. Tshekatsheko ya datha ya mathomo e phethagaditšwe ka go diriša tshekatsheko ya taolelopele ya seo se tla diregago ka ditšhelete, mokgwa wa go sekaseka dipalopalo le tshekatsheko ya Pearson ya dipalo tše pedi go bona tswalano ya tšona. Thutelo e laeditše gore tswalano gare ga matlotlo a kgwebo le bokgoni bja panka go hwetša dipoelo go bile le ditlamorago tše botse le dipoelo tše di ka bago nnete ka kemo ya kgonthišo ya 95% ge go dirišwa fela bokaalo bjo bo šalago ka morago ga go ntšha dikoloto. Le ge go le bjalo, kakaretšo ya sekoloto ka go matlotlo a kgwebo go bontšhitše gore matlotlo a kgwebo, ao a laeditšwego ka tekanyo ya palomoka ya dikoloto go bokaalo bjo bo šalago ka morago ga go ntšha dikoloto, e hlotše tswalano ye e sa letelwago gare ga matlotlo a kgwebo le bokgoni bja panka go hwetša dipoelo, le ge e ka ba dipoelo tše di ka bago nnete. Go phethilwe ka go re Land Bank e nyaka koketšo ya bokaalo bjo bo šalago ka morago ga go ntšha dikoloto go kaonafatša tiro ye e swanetšwego go dirwa. Methopo ye mengwe ya tswala ya fase go dikoloto e swanetšwe go lebelelwa. Dipoelo tša thutelo di na le ditlamorago tša Molaotshepetšo wa Land Bank, balaodi le babeeletši ba ka moso. / Finance, Risk Management and Banking / M. Com. (Finance)