Thesis (MPA)--University of Stellenbosch, 2004. / ENGLISH ABSTRACT: Good governance, improved service delivery and sound fiscal rnanagernent are sorne of the key initiatives of the National Government to create a better life for all South Africans as stated in the preamble of the Constitution of the Republic of South Africa,1996 (Act 108 of 1996). Municipalities, in particular, have a specific reference framework in this regard. In each of these initiatives there is a certain amount of inherent risks which may hamper the Government's overall service delivery programmes. In terms of the Municipal Finance Management Act, 2003 (Act 56 of 2003) for Local Government, councillors and municipal managers are, inter alia, responsible to ensure good corporate governance, ensure effective, efficient and transparent systems of financial - and risk management, internal control as well as the managing and safeguarding of assets and to ensure sustainable service delivery to communities. Rendering services of a high standard, economically and utilising resources efficiently remains a challenge for South Africa as a whole and in particular for local government. The absence of a corporate mechanism or model for the City of Cape Town makes it difficult to ensure that risks are addressed in an integrated manner. The development of a risk management model supporting corporate governance for the City of Cape Town will endeavour to reduce and/or minimise its risks. The question that arises and which this research study seeks to provide an answer to is "How can the City of Cape Town deal with risks relating to corporate governance in order to fulfil its constitutional and legislative obligations to its community in a sustainable manner?" The findings of applicable risk management models and/or approaches implemented at organisations representing semi-private and private sectors were analysed for consideration during the development of a proposed risk management model for the City of Cape Town. Legislative requirements and specific developments on risk management in the public sector have been researched in an attempt to determine what local government is expected to do in addressing their risks. When addressing the issue of corporate governance, Chief Executive Officers should reassess their organisations' corporate culture and set the "tone from the top". In the City of Cape Town's case the City Manager has a critical role in balancing the need to address competitive forces and the need to consistently do the right things. Top Management should constantly evaluate the completeness and appropriateness of corporate governance policies and practices as well as critical processes, internal controls and other risk management practices. Furthermore, the quality and competence of all staff need to be examined to determine if they understand government's challenges with regard to corporate governance. The development of a risk management model for the City of Cape Town will enable the organisation to pro-actively address its risks in this regard to fulfil its constitutional and applicable legislative requirements. / AFRIKAANSE OPSOMMING: Goeie regering, verbeterde dienslewering en gesonde finansiele bestuur is van die vername inisiatiewe van die Nasionale Regering om 'n beter lewe vir aile Suid-Afrikaners te skep soos vervat in die aanhef van die Grondwet van die Republiek van Suid-Afrika, 1996 (Wet 108 van 1996). In hierdie verband het munisipaliteite, in besonder, 'n spesifieke verwysingsraamwerk. In elk van hierdie inisialiewe is daar 'n sekere mate van inherente risiko's teenwoordig wat die Regering se algehele diensleweringsprogramme kan korlwiek. In terme van die Wet op Munisipale Finansiele Bestuur, 2003 (Wet 56 van 2003) vir Plaaslike Regering is, onder andere, raadslede en munisipale bestuurders, veranlwoordelik om goeie korporatiewe bestuur te verseker, doeltreffende, voordelige en deursigtige stelsels vir finansiele - en risikobestuur, interne beheer asook die bestuur en beskerming van bates te verseker en om volhoubare dienslewering aan gemeenskappe te verseker. Die lewering van dienste van 'n hoe standard, ekonomies en die voordeligste gebruik van hulpbronne is 'n uitdaging vir Suid-Afrika in bree en spesifiek oak vir plaaslike regering. Die afwesigheid van 'n korporatiewe meganisme of model maak dit moeilik vir die Stad Kaapstad om te verseker dat risiko's op 'n integrale wyse aangespreek word. Die onlwikkeling van 'n risikobestuursmodel ter ondersteuning van korporatiewe bestuur vir die Stad Kaapstad sal poog om risiko's te verminder en/te beperk. Die vraag wat ontstaan en wat deur hierdie navorsingstudie beanlwoord moet word is "Hoe kan die Stad Kaapstad risiko's ten opsigte van korporaliewe bestuur aanspreek ten einde te voldoen aan die konstitutionele en wetlike verpligtinge aan sy gemeenskap op 'n volhoubare wyse?" Die bevindinge van toepaslike risikobestuursmodelle en/of benaderings wat deur semi-privaat en private ondernemings ge"implementeer word, is ontleed vir oorweging gedurende die onlwikkeling van 'n voorgestelde risikobestuursmodel vir die Stad Kaapstad. Wetlike vereistes en spesifieke onlwikkelinge rondom risikobestuur in die openbare sektor is nagevors in 'n poging om vas te stel wat van plaaslike regerings verwag word lydens die aanspreek van hul risiko's. Wanneer die kwessie van korporatiewe bestuur aangespreek word, behoorl Hoof Uitvoerende Beamptes hul organisasies se korporatiewe kultuur te herevalueer asook die voorbeeld in hierdie opsig te stel. In verband met die Stad Kaapstad het die Stadsbestuurder 'n kritieke rol te speel om 'n balans te handhaaf tussen die behoefte van kompeterende magte en die behoefte om konstant die regte dinge te doen. Topbestuur behoorl die deeglikheid en toepaslikheid van korporatiewe bestuursbeleid en praklyke asook kritieke prosesse, interne beheer en ander risikobestuurspraklyke gereeld te evalueer. Voorls behoorl die gehalte en bevoegdheid van aile personeel nagesien te word om te bepaal of hulle die regering se uitdadings ten opsigte van korporatiewe bestuurs verstaan. Die onlwikkeling van 'n risikomodel vir die Stad Kaapstad sal die organisasie instaat stel om pro-aktief sy risiko's aan te spreek en sodoende aan sy konstitutionele en toepaslike wetlike vereistes te voldoen.

The practices of risk management are important in business, because they allow organisations to improve communication with all stakeholders and to be upfront and proactive in dealing with risks. Risk management also supports the achievement of the organisation’s strategic objectives which leads to a controlled working environment characterised by quality, efficiency and effectiveness. As such it is necessary to understand risk management, its benefits, significance and importance in implementing an organisation’s responsibilities. This understanding is especially vital for ECSECC so that risk management is utilised to achieve strategic objectives in a more deliberate manner. This qualitative study was conducted to demonstrate how ECSECC uses risk management to achieve its strategic objectives by analysing ECSECC’s risk management initiatives, their effectiveness and ultimately to provide recommendations to improve the current practices. The total population of nine executive managers from ECSECC was sampled and the data was collected through personal interviews and the content analysis of ECSECC documents. The findings of the research showed that ECSECC was aware of its risk and risks were identified for 2015/2016 and recorded in ECSECC documents. This awareness was also confirmed by the interview findings. The interview findings also revealed that risk management is indeed embedded in ECSECC activities and there are various risk management interventions in place. However the risk management interventions in mitigating the identified risks were relatively ineffective as certain shortcomings were identified. The study is beneficial to ECSECC management in order to ensure that the current risk management initiatives are effective and that there is a clear connection between the utilisation of risk management in achieving ECSECC’s strategic objectives. Organisations similar to ECSECC can also learn the importance of managing risks effectively to achieve strategic objectives and the benefits of risk management as a management tool.

Banks play a pivotal role in the economic growth and development of countries, primarily through the diversification of risk for both themselves and other economic agents. Interest rate risk is regarded as one of the most prominent financial risks faced by a bank. A large portion of private banks’ revenue stems from net interest income that is generated from the difference between various assets and liabilities that are held on the balance sheet. Fluctuations in the interest rate can alter a bank’s interest income and value, making interest rate risk management vital to its success. The asset and liability committee of a bank is the internal committee charged with the duty of managing the bank’s interest rate risk exposure through the use of various hedging strategies and instruments. This thesis uses a case study methodology to analyse GBS Mutual Bank interest rate risk management. Its specific business circumstances, balance sheet structure and the market conditions over a specified period are used to comment on the practicality of a variety of balance sheet positioning strategies and derivative hedging instruments. The thesis also provides recommendations for the bank’s asset and liability committee in terms of its functions and organisation. It is elucidated that the most practical balance sheet hedging strategies are a volume strategy and immunisation, while the most practical derivative hedging instruments are interest rate futures and interest rate collars. It is found that the bank has a well functioning asset and liability committee whose only encumbrance to its functionality is the inadequacy of the informational technology used to measure, control and manage its interest rate risk position. This thesis concludes by summarising the practicality of the various interest rate risk hedging alternatives available to the GBS Mutual Bank. Implementing a particular strategy or instrument depends, of course, on its asset and liability committee’s decision.

The topic researched for this project will be foreigh exchange hedging; the available forms, the uses, the procedures, and the value. This project will expand beyond the typical research and examine the value of hedging through the use of different foreign exchang currency trading strategies to small multinationational corporations.

Purpose The purpose of the research was firstly, to determine the competencies required of risk managers and secondly, to consider the implications of such competencies in determining possible modules for inclusion in the design of a specialised undergraduate qualification in Risk Management. Methodology A qualitative research approach was followed, involving focus group interview sessions as part of an Interactive Qualitative Analysis (IQA) research study. Focus Group 1 comprised of academics teaching risk management at public universities in South Africa, and Focus Group 2 comprised of risk management practitioners in South Africa. Findings The competencies identified are business management and risk management knowledge; attributes such as assertiveness and courage; values such as ethics and integrity; as well as people, business and technical skills. Research implications The unique contribution of the current research was the innovative use of IQA for data collection, the removal of subjectivity and the rigour in analysing and presenting the results. The results are a starting point or foundation for the design of a specialised undergraduate degree in risk management that will both meet the requirements of the risk management profession and will equip learners with the best possible combination of knowledge, skills, attributes, values and attitudes to effectively manage risk in organisations. The implications for further research are that a study of the design, benchmarking and validation of a curriculum framework for a specialised undergraduate degree in risk management could be conducted. The development of a curriculum framework or curriculum did not form part of the scope of this study. / Okokuqala inhloso yocwaningo, ukuthola amakhono adingekayo kubaphathi bezinhlekelele kanti okwesibili, ukubheka imiphumela yalokho kusebenza ekunqumeni amamojuli angafakwa ekwakhiweni kweziqu ezikhethekile ezingakaphothulwa ngabafundi ku-Risk Management. Kwalandelwa indlela yocwaningo efanelekile, ebandakanya izikhathi zokuxoxisana zamaqembu njengengxenye yocwaningo lwe-Interactive Qualitative Analysis (IQA). I-Focus Group yoku-1 inabafundi abafundisa ukulawulwa kwezinhlekelele emanyuvesi vi kahulumeni aseNingizimu Afrika, kanye neFocus Group yesi-2 inabasebenzi bokulawulwa kobungozi eNingizimu Afrika. Amakhono ahlonziwe ukuphathwa kwebhizinisi nolwazi lokulawulwa kobungozi; anezimpawu ezinjengokuzethemba kanye nokuba nesibindi; ubugugu obufana nokuziphatha nobuqotho; kanye nabantu, amakhono ebhizinisi nezobuchwepheshe. / Die doel van die studie was eerstens om die bekwaamhede waaroor risikobestuurders moet beskik te bepaal, en tweedens, wat die implikasies van sodanige bekwaamhede inhou vir die modules vir insluiting in die ontwerp van ‘n gespesialiseerde voorgraadse kwalifikasie in Risikobestuur. Die studie het ‘n kwalitatiewe navorsingsbenadering gevolg deur gebruik te maak van fokusgroepsessies as deel van ‘n Interaktiewe Kwalitatiewe Ontleding (IKO) navorsingstudie. Fokusgroep 1 het bestaan uit akademici wat risikobestuur by openbare universiteite in Suid-Afrika doseer, en Fokusgroep 2 het uit risikobestuurpraktisyns in Suid-Afrika bestaan. Die bekwaamhede wat identifiseer is, is kennis van ondernemingsbestuur en risikobestuur; eienskappe soos selfgeldendheid en moed; waardes soos etiek en integriteit; asook mense, sake en tegniese vaardighede. / Finance, Risk Management and Banking / M. Com. (Risk Management)