Tanzania’s Public Sector Entities Adopt New Risk Management Framework

Introduction

The Tanzanian government has introduced a new Institutional Risk Management Framework for all public sector entities (PSEs) to ensure effective management of risks and enhance transparency.

Objectives

The framework aims to develop a risk culture and practices among all staff in PSEs, establish accountability strategies and mechanisms, and assist internal auditors in providing independent assurance on the effectiveness of the risk management frameworks. It also seeks to enhance risk awareness and mitigation among PSEs, and ensure that risks are managed in a proactive and strategic manner.

Compliance

According to the guidelines, all PSEs, including ministries, departments, authorities, agencies, regional secretariats, local government authorities, public corporations, judiciary, parliament, and other offices in the public service, must comply with the framework.

Requirements

The guidelines require PSEs to:

• Develop a risk policy, culture, and structure that facilitates identification, recording, and monitoring of risks
• Integrate the risk management process into strategic, budgeting, and operational business planning activities
• Maintain a risk register to record, rate, profile, monitor, and report on identified risks
• Establish procedures for incident management

Implementation Roles and Responsibilities

The following roles and responsibilities have been assigned:

• Permanent Secretary-Treasury: overall responsibility for ensuring effective application of risk management processes, procedures, and practices in all PSEs
• Internal Auditor General: responsible for providing guidelines and directives on public sector risk management, conducting reviews and assessments, and receiving quarterly implementation reports from all PSEs

Background

The Tanzanian government has recognized the importance of effective risk management in ensuring transparency and accountability in the management of public funds. The new framework is designed to enhance risk awareness and mitigation among PSEs, and ensure that risks are managed in a proactive and strategic manner.

Key Provisions

• All PSEs must develop a risk policy, culture, and structure that facilitates identification, recording, and monitoring of risks.
• The risk management process must be integrated into strategic, budgeting, and operational business planning activities.
• A risk register must be maintained to record, rate, profile, monitor, and report on identified risks.
• Procedures for incident management must be established.

The guidelines will be reviewed every five years or as may be necessitated by changes in applicable laws, regulations, or significant changes in international standards relating to risk management.