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Mangosuthu University of Technology Annual Report
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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