Abstract
Enterprise risk management (ERM) is an integrated approach to addressing risk
(downsides and opportunities) in an organisation-wide manner, to enable an
organisation to reduce uncertainties regarding the achievement of its objectives. The
implementation of ERM in the South African public sector, and more specifically in
local government, should contribute to improved outcomes in service delivery and
other municipal deliverables.
This study focused on ERM maturity in local government in South Africa, with the aim
to identify contingent critical success factors (CSFs) upon which the successful
integration and functioning of ERM in local government are dependent. Risk maturity
was examined from a governance perspective, which included various elements of
New Public Management and good corporate governance. Several models to assess
risk maturity in the public sector were reviewed and found to lack an empirical basis
for determining ERM maturity levels, were highly qualitative, dependent on
unscientifically selected criteria, and subject to assessor personal bias and
interpretation.
This study applied a qualitative descriptive-interpretative approach, which drew from
naturalistic inquiry to study ERM practice in its natural state. Primary data were
collected by means of 20 semi-structured personal interviews with senior municipal
staff and councillors from the cities of Johannesburg and Tshwane. The participants’
views and understanding of ERM practice were recorded and transcribed for analysis.
The researcher applied thematic data analysis, whereby the data were coded and
themes and subthemes were identified. Systems theory was applied to the
interpretation of the themes and codes, which provided an important framework for
analysis and understanding local government within its internal and external context,
with the focus on the interactions and relationships of components and the
interdependencies and interrelatedness thereof.
The conclusions of this research identified the CSFs to be addressed to achieve risk
maturity in local government. A review of relevant risk maturity literature, the Municipal
Finance Management Act, and consolidated general reports on local government
issued by the Auditor-General of South Africa strengthened the assessment of the