A Critical Analysis of Risk Management Knowledge within the Sedibeng District Municipality, South Africa

Since the introduction of the Public Finance Management Act (PFMA) in 1999, the Municipal Finance Management Act (MFMA) in 2003 and the Public Sector Risk Management Framework (PSRMF) in 2010, municipalities had to start focusing on more efficient risk management as part of operational activities. Information for the study was obtained from two groups of officials employed at the Sedibeng District Municipality in southern Gauteng, South Africa, by means of one-on-one interviews and questionnaires. Group 1 consisted of 14 officials, not in management positions, and Group 2 of 11 employees in senior management. The questionnaire comprised five sections aimed at determining the knowledge and attitude of the respondents regarding risk management. Responses clearly indicated that knowledge of risk management differed substantially between Group 1 and Group 2. The knowledge, monitoring, assessment, identification and response to risk management activities were minimal or unclear to those not in management positions. Participants in management positions, in contrast, were more aware of risk management responsibilities; although, they admitted that the responsibilities were not always fulfilled as required, and in many cases only to comply with regulations. This paper proposes various recommendations that could improve the overall management and sustainability of risk management within the Sedibeng municipality in particular and other municipalities in general.