Page 49 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
Risk Management
KZNFILM’s primary objective is to create, preserve and realise value for the Organisation. KZNFILM’s approach to risk management seeks to identify risks and opportunities in the macro-environment, internally in the organisation, as well as issues that impact our stakeholders.
During the reporting year, KZNFC hosted a risk workshop with input from the executive and the management team, together with the risk officer to map the strategic and operational risks facing the organisation. The workshop also served to clarify KZNFC’s appetite and thresholds for risk. The result was a newly prioritized risk register, which was continuously monitored and reported on by the compliance and risk officer.
Area
Explanation
Strategy and objective-setting
KZNFILM’s risk appetite is aligned with our strategy and business objectives. How KZNFILM translates strategy into practice serves as a basis for identifying, assessing, and responding to risk.
Performance
Risks are prioritised by severity. The organisation responds and adopts a holistic view of the risk it has assumed.
Review and revision
By reviewing performance, KZNFILM considers how well risk management processes are functioning over time
Information, communication and reporting
Risk management requires an ongoing process of collecting and sharing information
KZNFILM’s Risk Appetite Framework
It is the responsibility of the KZNFILM’s Board to set the risk appetite for the organisation in line with the strategy. KZNFILM developed a risk appetite decision framework to drive risk reporting and management at the appropriate levels within the organisation. The Board and management teams make decisions about risks that may require a change to the strategy, risks that affect operations and the implementation of the strategy, while KZNFILM employees make decisions about risks that could potentially impact strategy execution negatively within their delegated authority.
The risk management process undertaken during the year provided a strong foundation and focus for the executive team. It significantly improved the strategic management and corporate governance of the Entity. KZNFILM’s Board believe that strategy, risk performance and sustainable service delivery are inseparable. Quality reviews are undertaken by EXCO and presented to the Audit and Risk Committee (ARC) through quarterly progress made during the year in addressing the strategic and operational risks. A risk register is compiled at the beginning of the financial year.
For the 2023/24 financial year, the following areas were identified as high-risk areas:
• Failure to Implement and deliver on KZNFilm Key service delivery programmes. The root cause of the risk was identified as
the following: ‘Budget cuts by the Shareholder, rollovers due to multi-year contracts of the film fund projects and ‘lack of
internal coordination and Prioritization
• Lack of competitiveness. The root cause of the risk was identified as follows: Lack of infrastructure, lack of permitting
system and lack of service companies.
• Loss of productivity due to disruption of operational services. The root cause for this risk was identified as ‘High Turnover of
staff, short term contracts - IT, HR, service providers and loadshedding
• Current Interventions and targets are not impacting effectively on transformation. The root cause for this risk was identified
as ‘lack of internal coordination and alignment in delivery of programmes
• High Staff turnover leading to disruptions to service delivery.The root causes identified was the pending merger and fixed
term contracts.
• Fragmentation in stakeholder management. The root cause for this risk was identified as ‘Non participation by some
stakeholders on our programmes due to perceived lack of transformation. Lack of Municipal specific plans to adddress filmmakers challenges
47 ANNUAL REPORT 2023/2024