The risk management maturity and the performance of the City of Johannesburg and its entities

Abstract

This research aimed to investigate the impact of risk management maturity withinthe City of Johannesburg Metropolitan Municipality (CoJMM) on overallproductivity and organizational performance. Using a quantitative approach,officials responsible for risk management within the CoJMM were surveyed togather data on various aspects related to risk management maturity. The studyrevealed persistent challenges in risk management within the CoJMM despite theimplementation of a framework, as highlighted by the Auditor General of SouthAfrica’s (AGSA) Audit Report (2022). Notably, private-sector firms in South Africaexhibited greater risk maturity compared to public entities, posing a significantchallenge for the CoJMM. Areas for improvement were identified, particularly inenhancing risk awareness, response consistency, and communicationeffectiveness. To address these challenges and improve risk managementmaturity within the CoJMM, several recommendations were proposed. Theseinclude evaluating the effectiveness of educational initiatives aimed at improvingrisk management skills and awareness among CoJMM officials, analyzinginconsistencies in risk management practices, exploring communicationdynamics within the CoJMM to enhance effectiveness in risk managementcommunication, understanding employee perceptions of risk assessmentprocesses to improve engagement and participation, promoting inclusivity in riskidentification culture to encourage collaboration and participation in riskmanagement activities, balancing community engagement initiatives with riskappetite to effectively manage risks while meeting community needs,investigating factors influencing employee confidence in risk response to addressany underlying issues, and developing strategies to handle exceptions tostandard risk management practices effectively. By implementing theserecommendations, the CoJMM can work towards improving its risk managementmaturity, thereby enhancing organizational performance and alignment withnational development objectives