Zimbabwe: Firms Urged to Set Up Risk Management Systems

Zimbabwe: Firms Urged to Set Up Risk Management Systems

30 May 2012

ORGANISATIONS have been urged to adopt enterprise-wide risk management frameworks. The call was made by Academy of Private Security Studies (Pvt) Ltd managing director Dr Bobby Ndungu at a client appreciation breakfast meeting hosted by Peace Security (Pvt) Ltd.

Dr Ndungu contends that security personnel are the best people to deal with risks that emerge within organisational structures.

“Risks for organisations and companies typically emerge from internal and external factors. While external risks are largely uncontrollable, it is important for organisations to understand the risks that emerge internally and are thus peculiar to the organisation.

“To this extent, organisations should establish a formal risk management system that is based on an understanding of the complete business process,” he said.

Effective enterprise-wide risk management frameworks basically follow that the organisation is both conscious of the risk challenges that it faces and be competent in addressing them or reducing their impact.

According to Dr Ndungu — and contrary to popular opinion — critical risks for an organisation do not emerge from finance, but from operations since this is where all the organisational processes occur.

“Operations is where the people are, and people are the biggest risks in organisations,” he said.

Dr Ndungu is also a non-executive director at Peace Security, one of the fastest growing security companies in the country.

Peace Security director Mr Abel Mubango said his organisation has a distinctive focus on health and environmental issues.

“We pay particular attention to issues of health, safety and the environment. Our experience working for mining firms has further enhanced our awareness and culture in these areas,” he said.

In addition to mining, Peace Security has done work across the range of economic sectors and has over 20 branches across the country.

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