Annual general report of the controller and - Parliament of Tanzania

in terms of likelihood of occurrence and impact to the
government and its entities.
On the other hand, risk management is a systematic
process of identifying, analyzing, evaluating and taking the
corrective measures against their occurrence and impact. It
consists of a systematic process of assessing and then
dealing with risks. This process entails consideration of the
context, followed by identification, analysis, evaluation,
and treatment of risks.
The government and its entities are exposed to both
internal and external risks which need to be identified and
mitigated. Therefore effective strategic plans and systems
need to be developed to enhance increased knowledge and
understanding of key risk exposures.
Recommendations
The government and the entities under its jurisdiction
should forthwith embrace the concept of risk management.
Institutions should develop strategic risk assessments; and
organize high profile training events on risk management as
important initiatives required to promote a wider
understanding of sound risk management and how it should
be applied. In doing so, the following should be dealt with:
• risk management policies and the benefits of effective
risk management should be clearly communicated to all
staff,
• Chief Executive Officers need to own, support, promote
and lead on risk management concept,
• the department's culture should support well thought
through risk taking and innovation,
• risk management should be fully embedded in the
management processes of government and its entities,
• the management of risks should be closely linked to the
achievement of objectives,
• the risks associated with working in other organisations
should be assessed and managed; and
• involve monitoring, review, and can usefully encompass
a dialogue with stakeholders along the way.
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Office of the Controller and Auditor General PA&oBs 2007/08 247