PRESS RELEASE: IIA SA launches its first Corporate Governance and Risk Management Index
PRMonitor:home>>news release>>

PRESS RELEASE: IIA SA launches its first Corporate Governance and Risk Management Index

The CEO of the Institute of Internal Auditors of South Africa (IIA SA), Dr Claudelle von Eck, launched their Corporate Governance and Risk Management Index, which is a reflection of South Africa's performance in corporate governance and risk management from the perspective of senior internal auditors. The Index is the first of its kind and is intended to provide a baseline for the measurement of performance in these areas for the country as a whole.

The King Reports on Corporate Governance have elevated the profile of corporate governance and risk management, and is internationally regarded as best practice guidelines. These principles are fundamental to organisations in both the private and public sectors. The Institute's purpose in undertaking such a survey was to assess how well organisations are performing in the practical implementation of corporate governance principles and also the adequacy of risk management which is closely related to governance.

The main results of the Index survey were released at a breakfast meeting for Chief Audit Executives, who were target group for the survey. CAEs are well positioned to provide an impartial view of the state of corporate governance and risk management, as they typically provide independent assurance on governance, risk and control within the organisations they serve.

Key trends that emerged from the survey included the following:

1. For the most part, internal audit functions across all sectors are sufficiently independent in executing their duties. Three quarters of survey respondents confirm this to be the case. This strongly implies that in most organisations there is no undue influence or interference exerted that could impair the ability of internal audit to provide independent assurance over corporate governance, risk and control.

2. The majority of organisations seem to be under-performing in the area of risk management, with less than half (41%) of respondents feeling strongly confident about the adequacy of their organisation's risk management capability. Given the importance of risk management, it is a serious concern that almost 60% of Chief Audit Executives, who are charged with providing assurance over risk management, have doubts about the adequacy of their organisation's risk management strategies and controls.

3. The area of greatest challenge for South African organisations lies in the field on Information Communications Technology. Not only are ICT strategies poorly aligned to organisational objectives, but CAEs also overwhelmingly rated the management of ICT as a top risk.

4. Adherence to the King III Codes of Governance is not as strong as might have been expected. Less than half of all respondents (47%) feel that their organisations have a strong level of understanding and implementation of the King III governance principles.

5. The aspect of King III recommendations that organisations find most challenging is the full implementation of Combined Assurance, with only 35% of CAEs strongly agreeing that their organisations were competent in using this framework.

According to Dr von Eck, organisations in both the private and the public sectors should be held to the highest standards of performance when it comes to corporate governance and the managements of risks. While the results were not entirely unexpected, she said that "it is rather surprising that risk management emerged as such a weak competence." She added that one would also have expected to see a greater level of adherence to King III, and wondered if there was not "an element of lip service paid to King III".

Despite the weaknesses identified by CAEs, it was nevertheless encouraging that internal audit is enabled to work with a high degree of independence, and that oversight bodies do set the right tone of zero tolerance of unethical behaviours. Furthermore, "these positive indicators could be used to build upon over the coming years, especially if organisations take cognisance of the weak factors raised by the survey, and invest in strengthening capacity in those areas".

The Institute of Internal Auditors of South Africa intends to undertake the survey annually and track the Corporate Governance and Risk Index over time, in the hope that it will become a useful tool for those in leadership positions, from senior and executive management to those serving on oversight bodies.

Issued for and on behalf of  Institute of Internal Auditors of South Africa (IIA SA)

Bafihlile Mokoena
Wisdom keys Group
PR Consultant
e: bafi@wkg.co.za
c: +27 (0)73 753 1025
t: +27 (0)11 463 7792
f: +27 (0)11 463 7542

HTML Comment Box is loading comments...

SEND PR
Get your press releases to the most influential media outlets, editors, journalists, freelancers, news portals, social media networks, bloggers and industry analysts in an instant.
more>>

PR WRITING
Tell us what you want written and our professional news team will help you reach your goals.
more>>

BUSA to seek high level meeting on Eskom power emergency

Business Confidence Claws Back

NAAMSA new vehicle sales drop 3.1% in February

SACCI Copper Theft Barometer up in January

Further Deterioration of Trade Conditions

The Role of NDP in Growing Small Business

Pretoria Zoo crocs get a new reason to smile

Is Price Still King

Half of users believe banks will refund their money in the event of cyber theft

E-tolls must be debated by provincial legislatures

Statement on Forensic Report on Electoral Commision

Local Government Revenue and Expenditure: Second Quarter Local Government Section 71 Report

OPINION: Invoking the wrath of the gods

Nudge: A new communications tactic

PRESS RELEASE: OUTA remains defiant - purchase of e-tags in not law

PRESS RELEASE: UDM reax to Johannesburg

PRESS RELEASE: ANC Gauteng thanks 400 000 residents

PRESS RELEASE: Call to young South Africans: Register to vote!

PRESS RELEASE: Message of support to all learners and students for exams

SPEECH: Can good governance increase trust amongst Govt, CS, Labour and Business?

Pomposity and purple prose

MEDIA ADVISORY: Gordhan to present Budget on February 26

PRESS RELEASE: Minister Gordhan on Mr Mackay's death

PRESS RELEASE: Kumba ICT Concourt judgment

PRESS RELEASE: Minister Patel welcomes High Court decision on scrap metal export system for South Africa

MEDIA ALERT: Gigaba, Nzimande to host intake of 1 000 learner artisans

PRESS RELEASE: COSATU NW on the non-compliances of the municipalities

PRESS RELEASE: SAICA supports the AGSA general report of audit results of national and provincial government

PRESS RELEASE: Joburg Road Closures for the of opening of the Orange AFCON 2013

PRESS RELEASE: Joburg's faith groups urged to support Afcon 2013 through prayer

PRESS RELEASE: Sod turning heralds plans to enhance FNB Stadium pitch

MEDIA ALERT: US Secretary of Commerce launches 'Doing Businesss in Africa' initiative with BUSA

PRESS RELEASE: Statement on Operation "Pillar of Defense" and announcements of countrywide pickets

MEDIA ALERT: Busa to host chairperson of AU Dr Nkosazana Dlamini-Zuma

South Africa and Czech Republic recommitted to boost trade relations

SA-EU Business Forum to be inaugurated in Brussels

Improved N14 route between Delareyville and Sannieshof is opened

SANRAL builds roads - and people

N1 Polokwane road closure

OUTA urges MPs to look beyond SANRAL

E-tolls: the system is working but not without some challenges

Platinum mine strike not good for the workers

COSATU response to Public Protector

DA economic policy reinforces apartheid privileges

NUM statement on the State Of The Nation Address

Racism again at Sun International resort

MEDIA ALERT: Start your own business

PRESS ALERT: Financial Co-operatives’ Indaba

PRESS RELEASE: 12 Finalists Announced for the 2012 Africa Awards for Entrepreneurship

PRESS RELEASE: SAA crisis shows why effective succession planning is crucial for SMEs

PRESS RELEASE: Social Enterprises may be SA’s only option

PRESS RELEASE: NUM disappointed as Anglo reinforces boys club mentality

PRESS RELEASE: Tri-partite announcement on Amplats restructuring proposals

Grindrod and Northwest Rail Company partner to develop the Copper Railway in Zambia

New rail leasing entity established for Africa

PRESS RELEASE: Cargo Carriers’ subsidiary brings innovation and reliability to bulk haulage

PRESS RELEASE: Grindrod subsidiary, Vanguard, completes erection of first wind-energy farm

PRESS RELEASE: Grindrod receives green light to acquire RACEC

Agri-Vie Invests $5 Million Into Kariki Group

PRESS RELEASE: Agri-Vie invests 49.9% state in joint Terason and Technichem business

PRESS RELEASE: Agri-Vie announces 63% stake in Cape Olive Holdings

PRESS RELEASE: Agri-Vie invests $6m in Tanzania Food Corporation

PRESS RELEASE: Marel and Three Streams Smokehouse introduce ground-breaking fish processing system

PRESS RELEASE: Awareness vital in preventing onset of heart disease

Cipla Nutrition announces Pain & Gain body makeover competition winner

Setting realistic goals key to keeping 2014 fitness reslotions

PRESS RELEASE: Joshua Capazorio chooses Cipla Nutrition

PRESS RELEASE: Cipla Medpro 'Ajuga' to address South Africa's shack fire crisis

PRESS RELEASE: SA pharmacists support greater public-private collaboration - survey

PRESS RELEASE: Smart tips for festive savings this Christmas

Orion Group finishes 2013 with double-digit growth in Hotel Division

Limited trade commences in Vodacom YeboYethu Scheme

Vodacom comment on ICASA termination rate statement

PRESS RELEASE: Vodacom recognised as Best Performer on JSE SRI Index

PRESS RELEASE: Interim results for the six months ended 30 September 2013

PRESS RELEASE: Vodacom supports reduction in mobile termination rates, raises concerns on asymmetry

Nedbank appoints Epic Communications as its PR agency

Nedbank Fair Share 2030 starts with Targeted Lending of R6 billion

PRESS RELEASE: Absa named South Africa’s best bank in Service Excellence

PRESS RELEASE: Armien Tyer to join Absa as Head of Investments

PRESS RELEASE: Absa multi-currency travel card uptake at 77%

PRESS RELEASE: IBM appoints ICT Worx as the first IBM Authorised Training Partner

PRESS RELEASE: PBT Group expands

PRESS RELEASE: Samsung cloud strategy driven by access devices

PRESS RELEASE: The African potential for tablets

PRESS RELEASE: Samsung inks a trendsetting smart solutions partnership deal with the Rwanda Government

PRESS RELEASE: RGT Smart appoints new financial director

RGT Smart appoints new financial director

Copyright | Terms of Service