Annexure D - Risk Analysis and Assessment (Per …

1 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityCorporate ServicesRisk Context:Human Resources RisksRISK ANALYSISRisk Name:Human resource: Attraction and RetentionRisk Description:Inability to attract and retain critical /scarce Cause:Unattractive remuneration of amenities and recreational of Retention Job Evaluation :Poor service of internal staff Rating:Impact Rating:Inherent Risk Rating:100100%100 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 8045%5524 CriticalCertainCriticalWeak20%CriticalSa tisfactoryMajorModerateRISK ASSESSMENTC urrent ControlsuuuuRetention DateDue DateStatusAction Plans & AccountabilityuuuuNot Started2012/08/282013/06/30 Implementation of an effective SkillsRetention Owner: Municipal ManagerAction Owner: Manager Corporate ServicesStart date: 28/08/2012 Due date: 30/06/2013 Task NameDescriptionRisk Owner Action Owner Page 1 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityOffice of the MayorRisk Context:Political RisksRISK ANALYSISRisk Name:Political Office Bearers: IGR Risk Description:Poor intergovernmental relations between the Municipality and the District Cause:Lack of Co-ordination by the District :Poor service and of Section 139 by the Rating:Impact Rating:Inherent Risk Rating.

2 10080%80 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 6445%4420 CriticalLikelyCriticalWeak20%CriticalSat isfactoryMajorMinorRISK ASSESSMENTC urrent ControlsuuuuCouncillors Code of DateDue DateStatusAction Plans & AccountabilityuuuuNot Started2012/08/282013/03/31 Establishment of Chief Owner: MayorAction Owner: Municipal ManagerStart Date: 28/08/2012 Due Date: 31/03/2013 Task NameDescriptionRisk Owner Action Owner Page 2 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityElectricity and InfrastructureRisk Context:Strategic and Service Delivery RisksRISK ANALYSISRisk Name:Electricity: ProvisionRisk Description:Insufficient capacity to supply electricity Cause:Unplanned development and of a master :Poor service to attract and economic impact failure to alleviate poverty through job Rating:Impact Rating:Inherent Risk Rating:65100%65 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 5845%3522 CriticalCertainCriticalUnsatisfactory10% MajorSatisfactoryModerateModerateRISK ASSESSMENTC urrent ControlsuuuuNo DateDue DateStatusAction Plans & AccountabilityuuuuNot Started2012/08/282014/06/30 Development of a Master Owner: Municipal ManagerAction Owner: Manager Electricity andInfrastructureStart Date: 28/08/2012 Due Date: 30/06/2014uuuuNot Started2012/08/282015/06/30 Upgrading of the network in Owner: Municipal ManagerAction Owner.

3 Manager Electricity andInfrastructureStart Date: 28/08/2012 Due Date: 30/06/2015 Task NameDescriptionRisk Owner Action Owner Page 3 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityCorporate Services ITRisk Context:Disaster Recovery/Business Continuity RiskRISK ANALYSISRisk Name:IT - Strategic AlignmentRisk Description: Non-alignment of the IT Initiatives or processes with the strategic objectives of the Cause: Lack of buy-in by management with regard to IT Governance processes. Financial constraints or low budget provided due to poor planning by departments and IT Unit. Delays in finalising the IT Strategy. Delays in appointing an IT : Hampered service delivery. Misalignment of IT Projects. Inadequate planning of IT resources. Duplication amongst different initiatives.

4 Fruitless and Wasteful expenditure. Failure of IT projects. Likelihood Rating:Impact Rating:Inherent Risk Rating:6080%48 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 3845%2612 MajorLikelyMajorWeak20%MajorSatisfactory ModerateMinorRISK ASSESSMENTC urrent ControlsuuuuNo DateDue DateStatusAction Plans & AccountabilityuuuuNot Started2012/04/022012/06/30 Formation of an IT Owner: Manager- Corporate ServicesAction Owner: IT ManagerStart Date: 02/04/2012 Due Date : 30/06/2012uuuuIn Progress2011/02/012012/06/30 Finalisation of IT Owner: Manager- Corporate ServicesAction Owner: IT ManagerStart Date: 01/02/2011 Task NameDescriptionRisk Owner Action Owner Page 4 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityCorporate Services ITDue Date : 30/06/2012 Page 5 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityCorporate Services ITRisk Context:Disaster Recovery/Business Continuity RiskRISK ANALYSISRisk Name:IT - Outdated software and InfrastructureRisk Description: Obsolete Cause: Lack of change management procedures.

5 Delays in finalising the IT Strategy. Inadequate : Incompatibility of old/outdated infrastructure and systems with the new software. Regular malfunctioning of critical application software and hardware. Inability or failure of systems to handle high system load when new applications or initiatives are deployed. Financial implications. Compromised service delivery. Compromised data and systems Rating:Impact Rating:Inherent Risk Rating:6080%48 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 3845%2612 MajorLikelyMajorWeak20%MajorSatisfactory ModerateMinorRISK ASSESSMENTC urrent ControlsuuuuNo DateDue DateStatusAction Plans & AccountabilityuuuuIn Progress2012/05/212012/06/30 Approval of IT Owner: Manager- Corporate ServicesAction Owner: IT ManagerStart Date: 21/05/2012 Due Date : 30/06/2012uuuuNot Started2012/04/022013/03/31 Review of Asset Management Owner: Manager- AdministrationAction Owner: Chief Financial OfficerStart Date: 02/04/2012 Due Date : 31/03/2013uuuuNot Started2012/05/212013/03/31 Upgrading of Owner: Manager- Corporate ServicesAction Owner.

6 IT ManagerTask NameDescriptionRisk Owner Action Owner Page 6 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityCorporate Services ITStart Date: 21/05/2012 Due Date : 21/05/2013 Page 7 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityCorporate Services ITRisk Context:Disaster Recovery/Business Continuity RiskRISK ANALYSISRisk Name:IT - Human ResourcesRisk Description: Retention or recruitment of key IT Staff. Root Cause: Poor market related remunerative packages offered by the Municipality. IT has not been realised as a strategic enabler within the : Delays or failure in implementation of critical IT initiatives. Hampered service delivery.

7 Failure to test IT Rating:Impact Rating:Inherent Risk Rating:6080%48 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 3845%2612 MajorLikelyMajorWeak20%MajorSatisfactory ModerateMinorRISK ASSESSMENTC urrent ControlsuuuuHuman Resources Retention DateDue DateStatusAction Plans & AccountabilityuuuuIn Progress2012/05/212012/06/30 Appoint an IT Owner: Municipal ManagerAction Owner: Executive Manager-Corporate ServiceStart Date: 21/05/2012 Due Date : 30/06/2012uuuuIn Progress2012/05/212012/06/30 Approval of IT Owner: Manager- Corporate ServicesAction Owner: IT ManagerStart Date: 21/05/2012 Due Date : 30/06/2012 Task NameDescriptionRisk Owner Action Owner Page 8 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityEngineeringRisk Context:Infrastructure RisksRISK ANALYSISRisk Name:Building Control: EncroachmentsRisk Description:Illegal Cause:Inadequate of awareness to the of capacity (staff).

8 Limited Skilled of enforcement of Municipal :Loss of of compliance with National Building Rating:Impact Rating:Inherent Risk Rating:6080%48 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 3845%2612 MajorLikelyMajorWeak20%MajorSatisfactory ModerateMinorRISK ASSESSMENTC urrent DateDue DateStatusAction Plans & AccountabilityuuuuNot Started2012/08/282013/06/30 Appointment of Inspectors and By-lawEnforcement Owner: Municipal ManagerAction Owner: Manager Electricity ServicesStart Date: 28/08/2012 Due Date: 30/06/2013uuuuNot Started2012/08/28 Effective enforcement of by-laws NameDescriptionRisk Owner Action Owner Page 9 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityEngineeringRisk Owner: Municipal ManagerAction Owner: Manager Electricity ServicesStart Date: 28/08/2012 Due Date: OngoingPage 10 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityOffice of the MayorRisk Context:Governance, Compliance/Regulatory and Reputational RisksRISK ANALYSISRisk Name:Business Support: Ward CommitteesRisk Description:Ineffective Ward Cause:Inadequate understanding of roles and of training due to financial of of regular relations between Ward Committee and relevant of co-ordination between ward councillors and :Poor communication of information between the Municipality and the delivery service Rating.

9 Impact Rating:Inherent Risk Rating:10060%60 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 3370%1814 CriticalModerateMajorSatisfactory45%Mode rateGoodMinorMinorRISK ASSESSMENTC urrent ControlsuuuuWard Committee Committee of Ward DateDue DateStatusAction Plans & AccountabilityuuuuNot Started2012/08/282014/06/30 Review of the nomination processes ofWard Owner: Municipal ManagerAction owner: Municipal ManagerStart Date: 28/08/2012 Due Date: 30/06/2014 Task NameDescriptionRisk Owner Action Owner Page 11 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32:20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityFinanceRisk Context:Financial RisksRISK ANALYSISRisk Name:Financial Management: Debt ManagementRisk Description:Failure to collect outstanding debts within required Cause:Lack of not ability to disconnect electricity outside the licenced :Loss of service Rating:Impact Rating:Inherent Risk Rating:100100%100 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 3090%920 CriticalCertainCriticalGood70%ModerateVe ry GoodInsignificantMinorRISK ASSESSMENTC urrent ControlsuuuuSummons/Final Demands of Collection and Credit Control of Debt DateDue DateStatusAction Plans & AccountabilityuuuuNot StartedNo future action NameDescriptionRisk Owner Action Owner Page 12 of 58 Annexure D - Risk Analysis and Risk Assessment21 September 2012 09:32.

10 20 Section D - Risk Analysis and Risk AssessmentEMnambithi/ Ladysmith Local MunicipalityGovernance and TransformationRisk Context:Process/Operational RisksRISK ANALYSISRisk Name:Business Support: Registry/Records ManagementRisk Description:Inadequate records management Cause:Lack of automated electronic of standardised records management system and :Auditor General compliance with National Archiving of crucial Rating:Impact Rating:Inherent Risk Rating:6060%36 Control Effectiveness (Current) Residual Risk (Current)Control Effectiveness (Desired)Residual Risk (Desired)Residual Risk Gap 2870%1018 MajorModerateMajorWeak20%ModerateGoodIns ignificantMinorRISK ASSESSMENTC urrent ControlsuuuuElectronic Records Filling DateDue DateStatusAction Plans & AccountabilityuuuuNot Started2012/08/282013/06/30 Improve current filing system toNational Archives Owner: Municipal ManagerAction Owner: Executive ManagerGovernance and TransformationStart date: 28/08/2012 Due date: 30/06/2013uuuuNot Started2012/08/28 Implement file tracking Owner: Municipal ManagerAction Owner: Executive ManagerGovernance and TransformationTask NameDescriptionRisk Owner Action Owner Pag