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Mangosuthu University of Technology Annual Report

53

Identification and assessment of risk

MUT is committed to the implementation of Enterprise

Risk Management (ERM). The policy and framework of

ERM provide processes for risk management that allow

Council through the Audit and Risk Committee to identify,

prioritise and effectively manage its material risks. By

identifying and proactively addressing these risks and

opportunities, MUT is able to protect its assets and create

value for its stakeholders.

The Risk Management Committee assessed the likelihood

of any of these events occurring, as well as its potential

impact.

MUT has a risk register in which it records all risk identified

by management that could impact the attainment of

the university’s strategic goals. It also provides for the

management to record the management actions and

controls it has in place to mitigate the identified risks and

serves as an action registry where there are gaps in the

controls that have been implemented.

The current ERM of MUT and guidelines are used to direct

the MUT Risk Management Plan. ERM focus areas with the

planned deliverables were all implemented.

Focus Area

Planned Deliverables

Comments

Embed Risk Management Framework Review MUT Strategic Risk Registers

Completed

Combined assurance conducted

Completed

Report on risk profiles

Completed

Fraud Risk

Develop policy on prevention of fraud and other irregularities Completed

Fraud Working group terms of reference

In Progress

Develop whistle Blowers Policy and Fraud Hot line

In Progress

Compliance

Develop Compliance universe

In Progress

Internal Audit

Internal Audit Charter

In progress

Management and controls of consequences of Risk (Intervention, physical and financial controls)

In compliance with the Regulations for Reporting by Public Higher Education Institutions (2014), corporate governance

and standards of the risk management process, MUT has identified the following strategic risks and has put in place

mitigating actions to address these risks and report on the respective controls regularly.

Risk Descriptions

Treatment Plan

The university might run out of cash

flow resources leading to inability to

finance its operations.

Develop and implement student debt policy

Introduce EDULOAN to provide loans to qualifying parents

Develop and implement third stream income strategy

Put in place an appropriate organisational structure in line with MUT size and

shape

Introduction of sustainable Postgraduate programmes

Academic activities might be disrupted

due to power outages (i.e. affect

printing of exam papers, Not able to

make use of lecture rooms and library)

Energy Management system that is capable of generating power for the

Institution

The quality of the teaching and

learning standards might be

compromised leading to reputational

damage and failure to secure

Programme accreditations.

Appointment of teaching and learning Ombudsman with approved terms of

reference