Abstract
This paper assesses risk management practices at South African universities by analyzing the extent of risk management disclosure recommended by King IV and the level of risk governance maturity. This study was motivated by #Feesmustfall disruptions, which pointed to the lack of effective risk management, preparedness for volatility and increased scrutiny by stakeholders. A qualitative content analysis using a risk disclosure checklist was conducted on 18 annual reports and analyzed using an exploratory research design. The results revealed that over 80% of the sampled South African universities have disclosed most of their risk management practices, showing an improved disclosure due to King IV’s “apply and explain” philosophy as introduced in 2016. However, there were areas of improvement identified, such as: defining and approval of risk appetites and tolerance; development and implementation of business continuity plans; confirming the unpreparedness for volatility; annual revision of policies; and integration of risk management into the culture and daily activities of the university. This paper builds upon previous studies that highlighted a lack of detailed disclosures in South African organizations’ annual reports. This study also provides interesting insights into the impact of social events on organizational practices and supports the notion that legislative accounting practices should echo stakeholders and societal expectations.
Highlights
It was South Africa’s first black president Nelson Mandela, who expressed that “Education is the most powerful weapon which one can use to change the world” (Assar et al 2010), a statement he strongly believed in as the newly elected democratic government embarked on a journey to transform the South African education system
The two sections consist of risk management practice disclosures as recommended by King IV for good governance
The main aim of this paper was to assess the extent of risk management practice disclosures of South African universities and risk governance maturity thereof
Summary
It was South Africa’s first black president Nelson Mandela, who expressed that “Education is the most powerful weapon which one can use to change the world” (Assar et al 2010), a statement he strongly believed in as the newly elected democratic government embarked on a journey to transform the South African education system Such an ambitious task was not easy given the inherent challenges of the past. It is in the best interest of the government, the private sector or external funders, the public and regulators for these institutions to strive and continue adding value to the economy and producing future leaders With challenges, such as the high cost of education, increased competition due to globalization, internationalization of education, availability of e-learning, and the increasing demand for free higher education, the future of HEIs with their existing business model and strategic positioning is questionable and uncertain (Kevin 2010; Moloi 2016b; Botha 2019).
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