Strengthen public finance management—GIZ
Country director of the German development arm GIZ, Matthias Rompel, says cases of abuse of public resources might increase if the country does not fully adhere to the Public Financial Management Reforms.
Addressing principal secretaries (PSs) and senior government departments in Lilongwe on Tuesday, Rompel said raising awareness of risk management from controlling officers to senior government officers is important as they oversee public resources in their respective ministries, departments and agencies.
“Ministries, departments and agencies in the public sector have a number of responsibilities, including inter-alia policy formulation, committing funds, contracting for supplies and services, deploying resources and controlling, supervising and reporting on implementation of policies, all in line with rules and regulations and on the basis of existing laws,” he said.
Rompel said enterprise-wide risk management (ERM) includes the methods and processes used by organisations to manage risks and seize opportunities related to the achievement of their objectives.
“ERM provides a framework for risk management which typically involves identifying particular events or circumstances relevant to the organisation’s objectives, assessing them in terms of likelihood and magnitude of impact, determining a response strategy, and monitoring progress.
“By identifying and proactively addressing risks and opportunities, value is created for stakeholders in the case of government for citizens, for employees, and for society at large,” he said.
Chief Secretary to Government George Mkondiwa said government needs a systematic and disciplined approach to manage governance, risk management and control process.
