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Risk Management and Control: Beauty or Beast?

Geremew Tadele, FCCA, CIA, CGAP, CCSA, CRMA Head of Internal Audit, African capacity Building Foundation
2 Fairbairn Drive Mt. Pleasant, ACBF Boardroom
14 Mar, 2014
11:00 – 13:00 Hrs.


The perception on risk is sometimes inclined towards adverse and negative occurrence of events that creates vulnerabilities to an organization. Due to different perspectives and ways of responding to risks, occasionally risk management process is considered as deterrent to innovations and non-responsive to seize emerging opportunities. Similarly, internal control is viewed as ‘cast in stone’ sets of processes and procedures that should be complied with in an organization irrespective of evolving changes in operating environments. It is sometimes regarded as constraint to efficiency, agility and flexibility to explore new opportunities. 

The presentation will enlighten that risk is all about the impact of uncertainty of the future, which may have positive or negative deviation from anticipated outcome. One aspect of risk is the positive impact which constitutes opportunity (up side of risk) in creating or preserving value to an organization, while the other aspect is threats to success that diminishes the value (downside of risks).

Organizational objectives and risks are interdependent. One cannot exist without the other. Thus, managing risk is not a matter of choice to organizations; it is rather an essential component of management practices. Risk management is not only able to respond to threats to success but also allows conscious risk taking practices and encourages innovation. On the other hand, internal control should be broadly measured in its contribution towards managing risks and achieving organizational objectives. Control without purpose, ineffective and costly internal control by itself is a major risk to an organization.      

The need for an effective risk management system, which is embedded to the organization’s day to day practices, is fundamental to success. While all stakeholders have a role on risk management, top management and the governing body have the ultimate responsibility to build positive risk culture and risk conscious workforce. The commitment of the leadership (i.e. ‘tone at the top’) in changing the perception of concerned parties towards risk management and control is paramount.

Thomas Kwesi Quartey

ACBF has been granted the status of a specialized agency because of the potential to transform Africa through capacity development.

H.E. Thomas Kwesi Quartey, Deputy Chairperson, AU Commission
Erastus Mwencha

The recognition of ACBF as the African Union’s Specialized Agency for Capacity Development launches the beginning of a new era for capacity building by ACBF, which will require an appropriate level of political commitment and financial support from all stakeholders.

H.E. Erastus Mwencha, Chair, ACBF Executive Board
Lamin Momodou

The remarkable achievements ACBF has registered over the past 26 years is not by accident in our opinion. They have come through hard work, dedication, commitment, purposeful leadership, support from the member countries as well as productive partnership building.

Mr. Lamin Momodou MANNEH, Director, UNDP Regional Service Centre for Africa
Goodall Gondwe

Africa needs ACBF as much, probably more now, than at the time it was created in 1991.

Hon. Goodall Gondwe, former Chair of the ACBF Board of Governors and Minister of Finance – Malawi
Ken Ofori Atta

Ghana’s partnership with ACBF is a tremendous blessing for us and therefore the opportunity for Ghana to host the 26th ACBF Board of Governors Meeting is something that we treasure.

Hon Ken Ofori Atta, Chair of the ACBF Board of Governors and Minister of Finance - Ghana