An investigation of internal risk control mechanism within the various department of eThekwini Municipality

Abstract

The central aim of this study is to investigate the current internal risks control mechanism within the various departments of eThekwini Municipality. The research has been conducted specifically in Durban, with regard to the eThekwini municipality senior officials and junior management staff. The major motivation for this study is to assist government’s institutions especially the eThekwini Municipality to improve understanding or awareness within the department on activities affecting exposure to risk and to understand the barriers to implementation of effective internal risk management control mechanisms and strategies. A mixed method approach was employed and the analysis of data was done using data tabulation of themes.

The findings of the study revealed that, if the eThekwini Municipality were to improve their risk control mechanisms, all staff members should be properly trained and encouraged to be involved in all levels of the organization. The study also recommended that the eThekwini Municipality consciously improve on identifying organizational risk by applying risk management processes that involve risk identification, risk evaluation, risk control, risk financing and risk monitoring. It is recommended that this process be monitored throughout. Another recommendation of this study was that the eThekwini Municipality must improve on internal risk control processes that include organizing, dividing the institution into various areas for evaluation, developing a plan for subsequent action, conducting internal control reviews, analyzing the general internal control review, documenting the event, evaluating internal control and preparing a report on internal control. This mechanism should be implemented contentiously and to be monitored throughout. It was recommended that eThekwini Municipality implement the ISO 31 000 standards.

This policy is recommended because it assists the organizations to reduce the chances of risk and it will assist the eThekwini Municipality to effectively implement their internal control mechanisms. Areas of research include further research into the progress of implementation of strategies that can be employed to improve the internal control mechanism of the eThekwini Municipality and intentional follow up on the models for risk management in South Africa. There are more internal control strategies that can be discovered here and hence the study recommends further research particularly on risk internal control within government institutions.