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Financial Management of Parliament Act, 2009 (Act No. 10 of 2009)

14. Risk Management

 

(1) The Accounting Officer must proactively manage risks to Parliament and its administration by timeously and systematically identifying risks on a case-by-case basis, including risks related to the identification and combating of:
(a) Fraud and corruption within the Supply Chain Management system;
(b) other economic transgressions within the Supply Chain Management system, such as theft and financial misconduct; and
(c) misconduct in terms of the Act and other applicable legislation.

 

(2) The Accounting Officer must analyse and assess risks, including conflicts of interest, and develop appropriate management plans in respect of these, including:
(a) Avoiding risks where possible;
(b) allocating risks to the party best suited to manage them;
(c) obtaining adequate mitigating strategies for residual risks;
(d) assigning relative risks to the contracting parties through clear and unambiguous contract documentation;
(e) accepting the cost of the risk where the cost of transferring the risk is greater than that of retaining it; and
(f) ensuring that the costs incurred in managing risks are commensurate with the importance of the purchase and the risks to the operations of Parliament and its administration.