Governance, Risk, and Compliance Handbook: Technology, Finance, Environmental, and International Guidance and Best Practices

CHAPTER 44

CORPORATE GOVERNANCE AND RISK MANAGEMENT IN AFRICA

Jackie Young

44.1 INTRODUCTION

44.2 PURPOSE OF CORPORATE GOVERNANCE

44.3 ROLE OF THE BOARD

44.4 RISK MANAGEMENT

44.5 REPORTING AND DISCLOSURE

44.6 CONCLUSION

REFERENCES

South Africa has been called the "Hub of Africa" because so many financial and business transactions flow through the country from the rest of the continent. The major South African banks have developed a vast outreach, and now provide services to many other countries in Africa and elsewhere. However, at the same time it is important to demonstrate a solid commitment to good corporate governance practices. Essentially, this entails that South African banks should think how they must approach and attain a reputable and beneficial framework of corporate governance that is aligned with the basic guidelines and requirements thereof. This includes a sound approach to risk management.

This chapter aims to discuss basic concepts of corporate governance and risk management within the African environment with specific reference to the South African banking industry.

44.1 INTRODUCTION

Corporate governance as well as operational risk management are fairly new disciplines that only recently emerged as disciplines in their own right, with many countries, including South Africa, giving them a rightful place as a critical determinant in an organization's management structure.

All the countries on the African continent are regarded as developing countries, although some ...