Fundamentals of Risk Management

Ekurhuleni Metropolitan Municipality (EMM): Risk management
The EMM regards enterprise risk management (ERM) as a critical cornerstone of good corporate 
governance and essential for the achievement of its business objectives. The starting point for the 
municipality’s ERM policy implementation is an ERM framework that respects the needs and 
aspirations of all with whom the EMM has relationships. To this end, all risks that may prevent the 
EMM from achieving its business objectives are proactively identified on a continuous basis and 
formally assessed at least once per annum to ensure achievement of these objectives and for the 
purpose of reporting on the process of risk management in the annual report.
These risks are managed formally and proactively through a factual approach to decision making, 
based on the logical and intuitive analysis of data and information collected about those risks and the 
planning, arranging, and controlling of activities and resources to minimize the impact of all risks to 
levels that can be tolerated by the municipality and other stakeholders.
A centralized coordination of ERM processes includes regular awareness programmes, risk 
identification and assessment, risk monitoring, reporting and independent verification of the status of 
internal controls, incidents investigation and reporting, and counter-measures across the EMM’s 

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Risk culture
operations, programmes and projects in order to achieve an integrated ERM system as part of its 
corporate governance responsibility.
To ensure that the municipality’s strategy and, consequently, its mandate as outlined in the 
constitution of the Republic of South Africa are fulfilled, the municipality’s ERM programme arms its 
people with tools and capabilities to overcome the barriers that arise in striving to exceed customer 
and stakeholder expectations.
Ekurhuleni Metropolitan Municipality (EMM)
Annual Report 2013–14