Risk management as a strategic tool for sustainable service delivery in King Cetshwayo District Municipalities

After nearly 30 years of democracy, South Africa grapples with the persistent challenge of ensuring the sustainable provision of basic services to its citizens. In light of this challenge, the study aimed to explore the application and effectiveness of risk management as a tool for sustainable service delivery in the Mthonjaneni, uMlalazi, uMfolozi, uMhlathuze and Nkandla local municipalities under the King Cetshwayo District Municipality. The study used a case study designed with a qualitative research approach. A sample of 22 participants was selected from among a population of local government political leadership and senior local government practitioners who are responsible for risk management, internal audit services and service delivery. Purposive sampling was used to draw this sample and semi-structured interviews were used to collect data from them. Data were analysed using thematic analysis on ATLAS.ti. The findings indicated a failure among municipalities to effectively apply strategic risk management as a tool to support sustainable service delivery. The mere existence of risk management systems and practices in the municipalities did not translate into efficient and effective strategic risk management due to existing challenges and dynamics. Notably, risk management and sustainable service delivery were found to be misaligned, attributed to poor politician-administrator interactions, the absence of risk management policies, and fragmented planning. Municipalities encountered numerous challenges in implementing risk management strategies, including a lack of adequate funding, skills deficits, low leadership commitment, and poor strategic capabilities. The study identified fiscal risks as a common challenge significantly impacting municipalities' abilities to provide sustainable services. In conditions marked by poor revenue generation and high-cost demands, fiscal risk management emerged as a critical activity capable of reducing budgetary gaps. However, the research highlighted hindrances to fiscal risk management, including skills shortages and leadership factors. In view of these findings, the study recommended several measures, including internal audit teams playing consultative roles in strategic risk management, enhancing risk training and awareness among service delivery stakeholders, increasing funding support to oversight departments, attracting and retaining audit and risk management skills, and fostering a risk management culture, among other initiatives.

Grantor dc:publisher.institution

University of Zululand

Year dc:date.issued

2024

Author dc:creator

• Zulu, Khulekani Calalabo

Advisor dc:contributor.advisor

• Jili, N. N.

Licence

• https://uzspace.unizulu.ac.za/bitstreams/3c307303-f5db-4e5e-b9ae-ab95a428ae0f/download