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Lesotho Finance Sector Embarks on Risk Management Revamp
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In a bid to ensure the stability and growth of its financial institutions, Lesotho has taken a significant step in revamping its risk management framework.
New Department Established
The Department of Enterprise Risk Management has been established to oversee the efficient and effective management of risks and projects within the sector. The department’s mandate is to provide an enabling environment for the identification, assessment, and mitigation of bank risks, ensuring that critical business processes continue uninterrupted at all times.
Objectives
- Facilitating awareness on risk management concepts among bank employees
- Guiding departments on risk management practices
- Providing advice to senior management and the board of directors on risk-related issues
Departmental Structure
The Department is divided into three key divisions:
Risk Management Division
- Developing and implementing risk management tools
- Raising awareness on risk management concepts
- Guiding departments on risk management practices
- Reporting on risk-related issues
Business Continuity Management Division
- Developing and implementing business continuity management tools
- Conducting awareness campaigns on business continuity concepts
- Guiding departments on BCM practices
- Testing and improving business continuity plans
- Providing advice to the bank on BCM issues
Project Management Office (PMO)
- Ensuring that only projects aligned with strategy are performed, and on time, within budget, and acceptable quality levels
- Providing project support services, specialist services, consultancy and advisory services, strategic and governance services, and guidance, assistance, and oversight of the bank’s portfolio of projects
Impact
The establishment of the Department of Enterprise Risk Management is seen as a major step towards strengthening the financial sector in Lesotho, ensuring that institutions are better equipped to manage risks and achieve their objectives.