Story by Justin Mahlahla
Zimbabwe must incorporate enterprise risk management and good corporate governance to better withstand and recover from shocks as well as to increase productivity, competitiveness, and innovation, which are essential for economic growth.
This was the rallying call at the 2024 Enterprise Risk Management (ERM) and Corporate Governance Awards held this Wednesday in Harare.
Guest of Honour, the Minister of Skills Audit and Development, Professor Paul Mavima, said corporate governance and risk management practitioners’ work must feed into the national vision of an upper middle-income economy and beyond.
“We must think about how we can contribute to the national aspirations of Vision 2030, but also begin to conceptualise the Zimbabwe we want to see in, say, 2075 and beyond. Let us also reflect on the challenges that lie ahead. The world is changing rapidly, and the risks and opportunities we face are becoming increasingly complex. In this dynamic environment, effective enterprise risk management and strong corporate governance will be critical to the success of businesses, organizations, and communities,” he said.
The Minister added, “It is a fact that enterprise risk management is a crucial aspect of national development that is often overlooked. We mainly look at ERM as a holistic approach to manage risks that affects an organisation’s objectives, but ERM goes beyond organisations. ERM contribute to national development in many significant ways. Our country has been implementing a lot of reforms to ensure that the economy gets back on track. We have seen a lot of effort in the Ease of Doing Business initiative.
“By identifying and mitigating risk organisations can reduce the likelihood of failure. Promoting sustainable business undertakings promotes economic stability through the creation of favourable business environment and attracting investment, which are the main objectives of Ease of Doing Business Reforms.”
He said as Zimbabwe intensifies the drive to encourage investment and innovation, ERM is crucial for organisations as it enables them to identify opportunities for growth and development, leading to increased investment and innovation.
“This, in turn, drives national development by creating new industries, jobs, and opportunities. We are also promoting Public-Private Partnerships in various sectors of the economy. ERM can assist by identifying and managing risks associated with these PPPs to ensure that we leverage on private sector expertise and resources to deliver critical infrastructure and services to spur national development,” he said.
The awards celebrate outstanding achievements of individuals, teams and organizations who have demonstrated exemplary leadership, innovation and commitment to excellence in risk management and corporate governance.
Enterprise Risk Management and good corporate management integrate the principles of transparency, accountability, and responsiveness to stakeholders’ concerns.
On the other hand, good governance promotes the development of strong institutions that are reliable for driving national development, as it enables governments and organisations to make informed decisions, manage resources effectively, and deliver services efficiently.
