Financial Management of Parliament Act, 2009 (Act No. 10 of 2009)14. Risk Management |
| (1) | The Accounting Officer must proactively manage risks to Parliament and its administration by timeously and systematically identifying risks on a case-by-case basis, including risks related to the identification and combating of: |
| (a) | Fraud and corruption within the Supply Chain Management system; |
| (b) | other economic transgressions within the Supply Chain Management system, such as theft and financial misconduct; and |
| (c) | misconduct in terms of the Act and other applicable legislation. |
| (2) | The Accounting Officer must analyse and assess risks, including conflicts of interest, and develop appropriate management plans in respect of these, including: |
| (a) | Avoiding risks where possible; |
| (b) | allocating risks to the party best suited to manage them; |
| (c) | obtaining adequate mitigating strategies for residual risks; |
| (d) | assigning relative risks to the contracting parties through clear and unambiguous contract documentation; |
| (e) | accepting the cost of the risk where the cost of transferring the risk is greater than that of retaining it; and |
| (f) | ensuring that the costs incurred in managing risks are commensurate with the importance of the purchase and the risks to the operations of Parliament and its administration. |