Thesis submitted in fulfilment of the requirements for the Degree of Doctor of Technology: Public Management, Durban University of Technology, 2011. / Disasters have inflicted a heavy cost on human, materials and physical resources, and degradation to the environment. Furthermore, disasters have negative physical impacts (which include casualities and property damage) and social impacts (which include psych-osocial, socio-demographic, socioeconomic, and socio-political). A comprehensive review of the literature has revealed that the development of disaster management strategies must be undertaken before the event strikes. Moreover, disaster management requires effective community-based strategies which will include programmes and measures to prevent, prepare, mitigate and recover from the impacts of disasters. The purpose of the study is to contribute to the formulation of a robust disaster management framework and plan including the creation of a fully equipped disaster management centre within the eThekwini Municipality. Moreover, to enable the disaster management department within the eThekwini Municipality to function effectively and efficiently by applying new systematic strategies in disaster risk reduction. Futhermore, to add value to the body of knowledge in South Africa as there are limited number of research on disaster management, and to add value to policy, protmote investment and protect vulnerable communities by implementing disaster prevention, preparedness and mitigation. The research was undertaken at Foreman and Kennedy Road informal settlements located in Clare Estate within Ward 25. A disaster management survey was self-administered to the population size of 220 respondents from which 140 respondents completed the questionnaires thereby generating a response rate of 63.6%. Interveiws were also conducted amongst eThekwini Municipality officials dealing mainly with disaster reduction. The dimensions of the study are disaster preparedness, prevention, response, recovery and rehabilitation, financial implications and future expectations. The data was analysed using Statistical Packages for Social Scientists (SPSS). Associations between variables were determined using Pearson chi-square. This study presents the research findings on disaster management by using frequency iv tables, graphs and cross-tabulations tables which have been compiled for each question. Analysis of the data revealed significant differences between the biographical variables (age, gender, marital status, education, occupation, income, number of children, number of dependants, race and tenure) and the five dimensions (disaster preparedness, mitigation, response, recovery and rehabilitation, financial implications and future expectations) respectively. Interpretation of results indicated that there exists significant relationships amongst the key variables of the study relating to disaster management. This study contributes to various academic disciplines, local government and society at large as it suggests strategies and recommendations that may be implemented to overcome disaster management challenges and attain disaster risk reduction. The study recommends that eThekwini Municipality should comply with the Disaster Management Act 57 of 2002 which requires the establishment of a disaster management centre, disaster management framework and the plan. Furthermore, the study recommended that the council should develop a system to classify hazard mitigation strategies in terms of five categories which are hazard source control, community protection works, land-use practices, building construction practices and building contents protection. The study recommends that the eThekwini Municipality should recognise recovery period mitigation and incorporate this objective into recovery planning. On the financial implications aspect, the study recommends that eThekwini Municipality should provide financial assistance on the disaster management prevention and preparedness strategies.

Thesis (MComm)--Stellenbosch University, 2012. / ENGLISH ABSTRACT: Almost all enterprises, individuals and organisations face some form of political risk on a continuous basis. In the past, mines have been lost, terrorist attacks have been devastating, and financial markets have experienced large losses due to political risk factors. We live in an ever-increasing politically insecure world where political risk factors and the analysis thereof receive increasing attention from both international and domestic establishments. From a business perspective, making the correct business decisions and determining the appropriate risk management strategy consequently are crucial to the success of an enterprise, due to the ever-present nature of political risk factors in the business environment. Especially in the emerging market economies of the world, political risk is an important phenomenon. In such emerging market economies, political risk factors could play a role that is as important as the economic factors that are decisive in the performance of markets. It is well known that the emerging market economies of the world have been the main recipients of foreign direct investments. A closer study of these economies has indicated that the majority of such investments have gone to the so-called BRICS countries (the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People‟s Republic of China, and the Republic of South Africa). After having studied the political and economic environments of the BRICS countries, it was concluded that ten political risk factors are common to these countries, namely nationalisation, confiscation, creeping expropriation, currency inconvertibility, breach of contract, non-honouring of government guarantees, war, violent civil unrest, non-violent civil unrest and terrorism. These political risk factors were investigated in a South African context by means of an empirical survey. A census was undertaken that consisted of structured personal interviews (based on a questionnaire) that were pre-arranged with most of the agents who sell Sasria insurance on behalf of Sasria Ltd. These agents mainly were conventional short-term insurers who handled claims on behalf of Sasria Ltd., which placed them in an excellent position to provide the study with valuable information. Violent civil unrest and non-violent civil unrest have not only been the political risk factors that had the most important impact on the total annual claims amount of the respondents over the past five years, but have also been the political risk factors that most frequently resulted in claims. It therefore did not come as a surprise that these were the two political risk factors for which there had been the highest level of demand for cover over the past five years. In terms of the importance of impact, the frequency of claims and the demand for cover, violent civil unrest and non-violent civil unrest are expected to remain the two most important political risk factors in South Africa over the next five years. When compared to the past five years, all the political risk factors (excluding breach of contract) are expected to have an increased impact in South Africa over the next five years. They are also expected to present an equal number or more claims in general. While excluding war and terrorism, the expectation is that the demand for cover against them will generally remain at the same level, but may increase. The South African short-term insurance industry generally faces considerable challenges regarding the cover provided against political risk factors to the public and businesses in South Africa. The industry and the South African public therefore need to be aware of the impact that various political risk factors have on the cover that is provided. This research study should assist the executives of short-term insurance in making better risk management decisions and exercising better control over their responsibilities regarding specific political risk factors in South Africa. / AFRIKAANSE OPSOMMING: Feitlik alle ondernemings, individue en organisasies kom voortdurend voor een of ander politieke risiko te staan. In die verlede was daar verlies van myne, terroriste-aanvalle het verwoesting gesaai en finansiële markte het groot skade gely vanweë politieke risikofaktore. Ons bevind onsself in 'n wêreld van toenemende politieke onsekerheid waarin internasionale sowel as binnelandse instellings meer en meer aandag aan politieke risikofaktore en die ontleding daarvan wy. Vanuit 'n sakeperspektief word korrekte besigheidsbesluitneming en die vasstelling van toepaslike risikobestuurstrategië vanweë die voortdurende teenwoordigheid van politieke risikofaktore binne die sake-omgewing gevolglik van uiterste belang vir die sukses van 'n onderneming. Politieke risiko is veral in die ontluikende mark-ekonomieë van die wêreld 'n belangrike verskynsel. In hierdie ontluikende mark-ekonomieë kan politieke risikofaktore 'n rol speel wat net so belangrik is as die ekonomiese faktore wat deurslaggewend is ten opsigte van hoe markte presteer. Dit is welbekend dat die ontluikende mark-ekonomieë van die wêreld die vernaamste ontvangers van buitelandse direkte beleggings is. 'n Nadere beskouing van hierdie ekonomieë het getoon dat die meerderheid van sulke beleggings na die sogenaamde BRICS-lande (die Bondsrepubliek van Brasilië, die Russiese Federasie, die Republiek van Indië, die Volksrepubliek van China en die Republiek van Suid-Afrika) gaan. 'n Studie van die politieke en ekonomiese omgewings van die BRICS-lande het tot die gevolgtrekking gelei dat hierdie lande tien politieke risikofaktore in gemeen het, naamlik nasionalisering, beslaglegging, kruipende onteiening, onverwisselbaarheid van valuta, kontrakbreuk, nie-nakoming van regeringswaarborge, oorlog, gewelddadige burgerlike onrus, nie-gewelddadige burgerlike onrus, en terrorisme. Hierdie politieke risikofaktore is met behulp van 'n empiriese ondersoek binne die Suid-Afrikaanse konteks ondersoek. Gestruktureerde persoonlike onderhoude (wat op 'n vraelys gebaseer was), is gebruik om 'n sensus te onderneem. Hierdie onderhoude is vooraf met agente wat Sasria-versekering namens Sasria Bpk. verkoop, gereël. Die agente was hoofsaaklik konvensionele korttermyn-versekeraars wat alle eise namens Sasria Bpk. hanteer. Hulle was dus in 'n uitstekende posisie om die studie van waardevolle inligting te voorsien.

Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: Grains are generally considered to be low risk products. However food safety laws and consumer demands require companies to implement programs that will ensure food safety. To comply with these demands, South African grain handling companies are required to implement appropriate risk management systems. Companies that do not adopt such systems will not only exclude themselves from international grain markets but also from the whole food industry with related losses in market share. This study involved consultation with various roieplayers in the grain industry and a literature study to determine the current status of food risk management systems in South Africa. The survey investigated the food risk management requirements of local grain handling companies, and how local and international companies manage food risks. Existing food risk management practices currently implemented by Overberg Agri were also analysed. Although Overberg Agri's grain division has been handling grain for many years, attention to quality, safety en food risk factors has been infonnal and fragmented. No formal documented food risk management system has been implemented. This study presents an integrated food risk management system for managing food quality and food safety. The management system aims at identifying all important processes which are to be managed, to formally document the processes and to provide guidelines for implementing the system. Adoption of such an approach would ensure that the system is implemented in a structured way and that processes are regularly reviewed and updated as required in an ever-changing business environment. The management system contains the implementation of a system that includes food quality~ safety and risk, but includes more than just the minimum requirements of the ISO 9001 and Codex standards. The proposed management system focusses on an approach based on logical sequence of the daily business, to involve everyone and keep them involved. This will ensure that processes are executed in a manner that will identify all food risks to limit or exclude them, rather than analysing each element of an existing standard and repeating it as a requirement. The existing management system of Overberg Agri is not effective in managing food risks because several losses still occure. This is because there are insufficient formal systems, documentation and records available to determine wheter losses can be ascribed to structures, work instructions, management or latent grain defects. The proposed system will ensure that the above mentioned will be implemented to supply the company, stakeholders en clients with sound information which is needed for continuous improvement of the company. / AFRIKAANSE OPSOMMING: Oor die algemeen word graan as veilige voedsel beskou. Verbruikers dring al meer daarop aan dat ondememings moet bewys dat hulle stelsels in plek het vir die versekering van veilige voedsel. Om aan die vereistes te voldoen, moet ondememings in Suid-Afrika wat graan hanteer, die gepaste risikobestuurstelsels implementeer. Ondernemings wat dit nie doen, stel hulself bloot aan verliese sowel as uitsluiting, nie net van die intemasionale graanhandel nie, maar ook die hele voedselindustrie. Vir die studie is rolspelers in die graanindustrie genader en literatuur bestudeer om vas te stel wat in Suid-Afrika ten opsigte van voedselrisikobestuur bestaan. Daar is ook vasgestel wat die behoeftes ten opsigte van risikobestuur is vir ondememings wat graan opberg en hanteer en wat plaaslike en internasionale ondememings doen om voedselrisiko's te bestuur. Ook is bepaal wat alreeds in Overberg Agri se graanafdeling rakende voedselrisikobestuur bestaan. Alhoewel die afdeling al jare funksioneer is daar heelwat plekke waar op informele wyse aandag aan kwaliteit, veiligheid en voedselrisiko gegee word, maar nie formeel nie. Die werkstuk poog daarin om 'n geintegreerde bestuurstelsel vir voedselkwaliteit en - veiligheid daar te stel. Die bestuurstelsel het dit ten doel om alle belangrike prosesse wat bestuur word, te identifiseer en op 'n formele wyse te dokumenteer en te implementeer. Sodoende word seker gemaak dat dit reelmatig gebeur en dat sulke prosesse gereeld hersien word om te sien of hulle noodsaaklik vir die bedryf is. Die bestuurstelsel behels die implementering van 'n stelsel wat voedselkwaliteit, -veiligheid en -risiko insluit, maar meer is as net die absolute minimum vereistes van die ISO 9001 en die Codex standaard. Hiervoor kombineer die voorgestelde bestuurstelsel die ISO 9001 en HACCP standaarde. Die bestuurstelsel konsentreer meer op 'n benadering gebaseer op 'n logiese volgorde soos die besigheid daagliks vloei, en om almal betrokke te kry en te hou, en dan te verseker dat prosesse so uitgevoer word dat alle voedselrisiko's geidentifiseer en beperk of uitgesluit word, eerder as om elke element van 'n bestaande standaard te ontIeed en weer te gee as 'n vereiste. Die bestaande bestuurstelsel van Overberg Agri is nie effektief in die bestuur van voedselrisiko's nie, aangesien te veel verliese steeds voorkom. Dit is waarskynlik omdat daar nie genoeg stelsels, dokumentasie en rekords beskikbaar is, sodat oorsake toegeskryf kan word aan strukture, werksinstruksies, bestuur of graan nie. Die voorgestelde stelsel wil verseker dat bogenoemde geimplementeer word om vir die ondememing self, aandeelhouers en kliente konkrete inligting te gee sodat verbetering voortdurend aangebring kan word.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: The energy sector of the South African economy is poised to change in extraordinary ways. In just a few short years from now, the days will be gone when generators are guaranteed of their income and where regional distributors have the monopoly in the regions that they are servicing. Other energy markets in the world, such as oil and gas, have been free of regulation for many years. More recently, local policymakers have been focussing on increasing competition in the electricity sector and in so doing, liberate electric utilities from government's long established control. The shift away from government regulation of energy will lead to something even more important than placing downward pressure on the price of a MWh. It will instigate the development of multiple trading centres and platforms that are dedicated to competition in the free trade of electricity and related products. With the deregulation of the electricity supply industry and the inevitable introduction of competition, the real risks of energy trading will be faced by generators and distributors alike. This research investigates the changes that are set to occur within the next few years, based on developments that have unfolded in countries where electricity supply industries have been privatised and utilities and distributors are managing their risks in this new competitive environment. It explains how the South African Electricity Supply Industry may change with respect to the develop of markets which provide risk cover to industry players, the practices assumed by utilities in international electricity supply industries to minimise their risk exposure, and how industry players can use derivative instruments to manage their risks better. / AFRIKAANSE OPSOMMING: Die elektrisiteitsvoorsieningssektor is gereed om groot veranderings te maak. Binne 'n paar jaar, sal ons die einde sien van die dae waar kragstasies gewaarborg is van hulle inkomste en waar streeksvoorsieners die monopolie het in die streke waarin hulle verskaf. Ander energie markte in die wêreld, soos die van olie en natuurlike gas, is al sonder regulering vir baie jare. Meer onlangs het beleidsrade hul tyd toegewy aan die instelling van kompetisie in die elektrisiteitsvoorsieningssektor om utiliteitsmaatskappye vry te maak van staatsbeheer. Hierdie beweging weg van staatsbeheer sal lei na iets meer as net die afwaardse druk op die prys van 'n MWh. Dit sal die begin merk van die ontwikkeling van veelvoudige verhoë wat toegewyd is aan kompetisie in die vrye handel van elektrisiteit en soortgelyke produkte. Met die deregulering en die onvermydelike indiening van kompetisie, sal die ware risikos van energie handel aanvaar word deur voortbrengers en verskaffers van elektrisiteit. Hierdie navorsing stel ondersoek in die veranderings wat van plan is om te gebeur in die volgende paar jaar en is gebaseer op die ontwikkelinge wat in lande afgespeel het waar elektrisiteitsvoorsieningsnywerhede geprivatiseer is en waar voortbrengers en verskaffers van elektrisiteit hulle risikos bestuur in hierdie nuwe mededingende sektor. Dit verduidelik hoe die Suid-Afrikaanse elektrisiteitsvoorsieningsnywerheid mag verander teen opsigte van die ontwikkeling van markte wat risiko versekering aanbied vir utiliteitsmaatskappye, die praktyke wat deur hierdie spelers toegepas word om hulle blootstelling aan risikos te verminder, en ook hoe hulle afgeleide instrumente gebruik om hulle risikos beter te bestuur.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: This study reviews the development and current status of the weather derivative market in the world. As technology has improved, man's potential to model the unpredictable has come to the fore. Changes in the macro economic environment have prompted business to diversify. Deregulation in the American energy market and the advent of weather phenomenon like EI Nino and La Nina enticed large business to hedge their risk exposure in a different way than traditional diversification. Risk for the agriculture sector can be divided into three categories: Price risk, event risk and yield risk. Price risk has been managed by the incorporation of options and futures in the marketing of produce and acquiring of requisites. In conclusion the research finds that the SA market has the potential to grow faster than its American and European counterparts partly because techniques developed can be "leap frogged", but mostly because the SA environment induces smaller contracts that will lead to more market participants and eventually to higher liquidity. / AFRIKAANSE OPSOMMING: Hierdie studie bespreek die ontwikkeling en huidige stand van die Weer afgeleide instrumente mark in die wêreld. Soos tegnology verbeter het, het die mens se vermoeë om die onsekere te voorspel na vore getree. Veranderings in die makro ekonomiese omgewing het besighede genoodsaak om te diversifiseer. Deregulasie van die Amerikaanse energy mark en weerverskynsels soos EI Nino en La Nina het groot besighede verplig om risiko te verskans deur middel van 'n ander metode as tradisionele diversifikasie. Risiko in die landbou sektor kan verdeel word in drie kategorie; prys risiko, gebeurtenis risiko en laastens opbrengs risiko. In die verlede is prys risiko bestuur deur die insluiting van afgeleide opsies in die bemarkingsaksie van kommoditeite. Gebeurtenis risiko is beheer deur oes versekering en die laaste word deesdae deur weer afgeleide instrumente bestuur. In samevatting bevind die navorsing dat die Suid Afrikaanse mark die potensiaal bevat om vinnig te groei. Deels omdat tegnieke wat ontwikkel is gebruik kan word en deels omdat die Suid Afrikaanse omgewing kleiner kontrakte, dog meer deelnemers in die mark stimuleer.

Thesis (MBA)--Stellenbosch University, 2006. / ENGLISH ABSTRACT: The Omega function is a relatively newly developed performance measure, falling within the class of downside risk measures. This measure does not make any assumptions regarding the return distributions evaluated, but incorporates the actual return distribution in its calculation. The sensitivity of this measure to simulated changes within the class of stable distributions was tested, within the range of parameters that was evident in the South African investment environment. The Omega and Sharpe ratios that were calculated for these distributions were ranked and compared. Even though the rankings were similar, discrepancies did occur. On investigation it was found that these discrepancies were caused by the inability of the Sharpe measure to differentiate between increased volatility caused by higher probability weighted gains (or positive skewness) and losses, as the Sharpe ratio penalises funds for volatility. The simulated tests were extended to various distributions, which have different risk profiles and distribution shapes, and ranked. A higher incidence of ranking differences occurred due to the inability of the Sharpe ratio to differentiate between gains and losses, correctly account for the risk of positively skewed distributions and lastly due to negative Sharpe ratios, caused by the average realised returns being exceeded by the threshold (target) rate, resulting in incorrect rankings. Comparison of rankings based on the Sharpe and Omega measures was performed on the class of general equity unit trusts over a five-year period, which resulted in statistically similar rankings. In extending the evaluation over shorter periods, the ran kings were still statistically similar, even though some differences were noteworthy. As the returns became more variable, the Omega measure captured this variation and risk whilst the Sharpe ratio was unable to, as its formulation is limited to two statistics, thus losing all this additional information. Normally performance evaluation is not initiated with a detailed analysis of the return distributions in order to determine which performance measure is more appropriate. The Omega measure incorporates the distribution into the calculation, which is not the case with the Sharpe measure. Therefore, even if the distributions are normal, the Omega measure gives exacty the same result as the Sharpe measure. However, where return distributions diverge from normality, we can be certain that the Omega measure will correctly incorporate the divergence, whilst it has been shown that in certain instances the Sharpe measure does not. The Omega measure adds another dimension to risk-adjusted performance evaluation and should be incorporated in the evaluation process. / AFRIKAANSE OPSOMMING: Die Omega-funksie, wat as 'n afwaartse risikomaatstaf geklassifiseer word, is 'n relatiewe nuut-ontwikkelde prestasiemaatstaf. Hierdie maatstaf maak nie enige aannames ten opsigte van die opbrengsverdelings wat ge-evalueer word nie, maar inkorporeer die werklike opbrengsverdeling in die berekening. Die sensitiwiteit van hierdie maatstaf tot gesimuleerde veranderinge in die klas van stabiele verdelings is getoets, binne die parameters van toepassing in die Suid Afrikaanse beleggingsomgewing. Die Omega- en Sharpe-maatstawe is bereken, georden en vergelyk. Alhoewel die rangordes meestal dieselfde was, het verskille in sommige gevalle voorgekom. Hierdie verskille is veroorsaak deur die onvermoe van die Sharpe-maatstaf om te onderskei tussen verhoogde volatiliteit veroorsaak deur 'n hoer waarskynlikheidsgeweegde wins, of positiewe skeefheid en verliese. Die Sharpe-maatstaf penaliseer alle volatiliteit. Die gesimuleerde toetse is uitgebrei na alternatiewe verdelings wat verskillende risikoprofiele het en is weereens georden. Weereens was die rangordes meestal dieselfde. Die verskille wat plaasgevind het, is veroorsaak deur die onvermoe van die Sharpe-maatstaf om tussen winste en verliese te onderskei, positiewe skeefheid korrek te verdiskonteer en laastens om negatiewe Sharpe-verhoudings in die korrekte rangorde te plaas. 'n Vergelyking van die rangordes van die Sharpe- en Omega-maatstawe is gedoen op die algemene effektetrusts oor 'n tydperk van vyf jaar. Die rangordes in geheel was statisties dieselfde. Hierdie toetse is vervolgens uitgebrei om korter tydperke in te sluit, wat weereens in geheel statisties dieselfde korrelasie getoon het, maar 'n paar individuele portefeuljes se rangordes het heelwat verskil. Soos die opbrengste gevarieer het, kon die Omega-maatstaf hierdie variasies en risiko verdiskonteer terwyl die Sharpe-maatstaf nie in staat was om hierdie risiko te verdiskonteer nie, aangesien sy formulering beperk is tot twee statistieke wat 'n verlies van inligting tot gevolg het. Normaalweg word prestasie-beoordeling nie begin met 'n gedetailleerde analise van die opbrengsverdelings om te bepaal watter prestasie-maatstaf meer toepaslik is nie. Die Omega-maatstaf inkorporeer die verdeling in die berekening, wat nie die geval is met die Sharpe-maatstaf nie. AI is die opbrengsverdelings normaal, gee die Omega-maatstaf dieselfde resultate as die Sharpe-maatstaf. Waar die verdelings egter afwyk van normaal, weet ons dat die Omega-maatstaf die afwykings korrek verdiskonteer, terwyl dit bewys is dat die Sharpe-maatstaf in sekere omstandighede nie die afwykings korrek verdiskonteer nie. Die Omega-maatstaf voeg 'n verdere dimensie by risiko-aangepaste prestasiemeting en behoort dus ingesluit te word in die evauleringsproses.

Abstract not available. / Thesis (MBA)-University of Natal, Durban, 2001.

All companies, are vulnerable to events that could impact their reputation. These events can arise from various factors, such as a company's employment practices, economics, natural disasters, pollution, poor governance or poor management. Effective risk managers identify the different circumstances and factors that may impact on the reputation of a company, prior to the incident occurring. In order to assist risk managers, this dissertation proposes a structured approach to the management of reputational risks, which would ensure that the impact on the reputation of the company is minimised. The proposed approach was collated and deduced from the actions taken by companies that have suffered attacks against their reputations, but have successfully mitigated the consequences and minimised the damage to their reputations. Specific South African legislative requirements are also taken into account. This approach is highlighted and confirmed by contrasting it to the actions taken by companies that failed to counter the attacks on their reputation. / 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)

Despite phenomenal success of the commercial agricultural sector in South Africa and significant progress in integrating smallholders since democratic reforms, food security concerns remain. Recent global increases in food prices have further exacerbated vulnerabilities and made it imperative to examine alternative food production questions in the country. Organic agriculture is identified as one of the sustainable approaches to farming and offers insights towards a paradigm shift in food and nutritional security. Notwithstanding, consumer awareness, knowledge and consumption of organic foods are significantly lower in developing than developed countries. Risks associated with adoption of organic practices need to be explored to address the supply and demand constraints. Similarly, while consumer awareness of organic foods is the first step in developing demand for organic products, it does not necessarily translate to consumption. Therefore it is important to investigate these issues. The objectives of this study were to: (i) describe the demographic and socio-economic characteristics of organic farmers and consumers; (ii) establish the determinants of farmers‘ decision to participate in organic farming distinguishing between the fully-certified organic, partially-certified organic and non-organic farmers; (iii) elicit farmers risk preferences and empirically analyse farmers sources of risk and risk management strategies; (iv) explore consumer awareness, perceptions and attitudes regarding organic products; and (v) identify the factors that influence consumer‘s preference and consumption of organic products. A total of 400 respondents were surveyed, consisting of 200 smallholder farmers in KwaZulu-Natal and 200 consumers in the Eastern Cape. The KwaZulu-Natal study was conducted earlier and identified the following as major sources of risk, lack of consumer awareness of organic products and lack of information among producers about consumer preferences for organic products. This informed the need to undertake a consumer awareness and preference study, in order to inform producers. The Eastern Cape is a bordering province to KwaZulu-Natal with similar socio economic conditions and a major consumer of produce from KwaZulu-Natal. It was also expected that in the intervening period there could have been awareness about the product. An vii indication of its appeal would not be in the consumption of the product by the people who grow it, but by consumers who reside in bordering regions. Producer and household questionnaires were used to record household activities, socio-economic and institutional data as well as household demographics through personal interviews. The Arrow Pratt Absolute Risk Aversion (APARA) coefficient was used to measure the farmer‘s degree of risk aversion and the experimental gambling approach to establish the risk classification. Consumers were also asked about their awareness and knowledge about organics, attitudes and perceptions towards organics, preference and consumption patterns. The ordered probit results indicate that older farmers, who are less risk averse and reside in the sub-ward Ogagwini, Ezigani, and Hwayi were more likely to be certified organic farmers. Similarly, the propensity to adopt organic farming is positively correlated to household size, livestock ownership, asset base and tenure security. The risk analysis indicates that at higher pay-offs most farmers are intermediate to moderately risk-averse, with little variation according to personal characteristics, and that non-organic farmers tend to be more risk averse than fully-certified and partially-certified farmers. In general, price, production and financial risks were perceived as the most important sources of risk. Using Principal Component Analysis (PCA), seven principal components (PCs) explaining 66.13% of the variation were extracted. Socio economic factors having a significant effect on the various sources of risk are age, gender, education, location, information access and risk taking ability. The most important traditional risk management strategies used by the surveyed farmers are crop diversification, precautionary savings and participating in social networks. There was general awareness of what constituted organic foods with many consumers associating organic foods with health and nutrition, chemical free and produced using indigenous methods of production. However, there was low awareness of organic products among consumers with little or no knowledge of organic certification and standards. According to the logit model the major factors influencing consumer awareness of organic products are: gender, education, employment status, and location of the respondents, person/household member responsible for shopping and the price perception of the decision maker. The discriminant analysis showed that the consumption of organic products is significantly affected by age of the consumer, viii location, person/household member responsible for shopping, consumer awareness of organics, price perception and label trust. The findings from this study provides useful practical insights for policy makers, farm advisers and researchers in the design of effective and efficient policies, programmes and projects which can affect the adoption of organic practices, increase smallholder farmers capacity to manage risk and drive growth in the organic food market.