Public Officials Charged with Ensuring Safety and Efficient Use of Resources
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The government has tasked public officials with ensuring the safety and efficient use of public resources in line with Section 32 of the Public Finance Act, CAP 348. This move aims to promote good governance and effective risk management practices across the public sector.
Risk Management Policy Statement
The government recognizes that risk is inherent in all public sector entities and considers risk management as an integral part of sound governance. The policy statement aims to ensure that risk management practices are adopted, implemented, and enhanced across the public sector.
Guidelines for Developing and Implementing Institutional Risk Management Framework
To achieve this goal, the Ministry of Finance and Planning has developed guidelines for developing and implementing institutional risk management frameworks in Public Sector Entities (PSEs). These guidelines are written in line with ISO 31000:2018 Risk Management - Principles and Guidelines.
Adoption of Risk Management Standards
All PSEs are required to comply with minimum requirements of the guidelines, as well as industry-specific standards issued by their respective regulators. This ensures that risk management practices are consistent across the public sector.
Implementation Requirements for PSEs
To ensure effective risk management, PSEs must:
- Develop and implement a risk policy, culture, and structure
- Establish procedures for identifying, recording, and monitoring risks
- Integrate the risk management process with strategic, budgeting, and operational business planning activities
- Maintain a risk register for recording, rating, profiling, and reporting identified risks
- Monitor, review, report, and enhance risk management and governance systems
- Establish procedures for incident management
Implementation Roles and Responsibilities
The implementation of these guidelines will be led by the Permanent Secretary-Treasury, who will work closely with the Internal Auditor General (IAG). The IAG is responsible for ensuring that all internal auditors perform Risk-Based Internal Auditing and championing the adoption, implementation, and enhancement of risk management practices across the public sector.
Oversight Bodies
Governing and oversight bodies will also play a crucial role in ensuring compliance with these guidelines. They are expected to provide guidance, support, and capacity building to PSEs to enable them to implement effective risk management practices.
Conclusion
The government’s commitment to promoting good governance and ensuring the safety and efficient use of public resources is commendable. By implementing these guidelines, PSEs will be better equipped to manage risks and achieve their objectives effectively.