U-Risk® Overview - King III

The issuance of King III was necessitated by the changes in the Company’s Act of South Africa and changes in international governance trends.

The Code applies to all entities, regardless of their nature, size or form of incorporation.

Chapter 4 on Risk Management reflects the following, inter alia:

  • Risk management is an integral part of the strategy and business processes
  • The Board is ultimately responsibility for the process of risk management
  • Management is responsible for implementing the process
  • The board should ensure that risk assessments are performed on a continuous basis using a top-down approach
  • Risks should be prioritised and ranked to focus the responses and interventions on those risks outside the board’s risk tolerance limits
  • Key risks should be quantified
  • The risk management process should be verified/assured by Internal Audit
  • The effectiveness of risk management should be reported by the Board
  • The board should ensure that there are processes in place enabling complete, timely, relevant, accurate and accessible risk disclosure to stakeholders