An evaluation of risk management practices in South African Public Institutions

Efficient risk management within the supply chain is essential for municipal success. This study assesses the supply chain risk management procedures of the Thulamela Municipality to guarantee service delivery. The main objectives were to evaluate the municipality's risk management structure and recommend enhancements in accordance with the MFMA and King IV requirements. The study question examined the implementation of a risk management system by Thulamela to guarantee service delivery. Utilising risk management and institutional theory, the study adopted a mixed-methods approach, applying deductive thematic analysis and SPSS software to examine data regarding the municipality's risk management procedures, team expertise, and framework suitability. The findings reveal that although Thulamela possesses a supply chain risk management framework, enhancements are necessary, specifically in (i) empowering the risk management team, (ii) incorporating technology and maintaining a record of suppliers with a history of non-compliance, and (iii) augmenting staff's risk management expertise. A favourable correlation was observed among effective risk management, institutional theory, supply chain procedures, and service delivery. This report provides essential information for policymakers to improve municipal supply chain risk management. Future research may investigate the impact of technology on mitigating risks such as non-compliance, corruption, and supplier failures, and also analyse the risk management frameworks among South African municipalities.