Risk Management and Compliance

The SARB is exposed to significant inherent risks in many of its core functions. Given its unique role, the SARB’s risk management and control objectives go beyond institutional risk and return considerations to include public interest in line with its constitutional and statutory responsibilities.


The SARB’s risk management framework ensures that the risks that may threaten the achievement of its strategic objectives are adequately and effectively managed at acceptable levels. The approach to risk management includes monitoring and appropriately responding to potential and actual risks emanating from global and domestic political and economic environments. The risk management framework governs the full spectrum of risk, including strategic, financial (including credit, market and liquidity risk), reputational, operational and  policy process (risks related to the SARB’s processes that support monetary and financial stability policy) risk. The framework also considers and, where appropriate, incorporates the recommended risk management principles of King IV, and ensures that risks are managed in a way that is consistent with internationally accepted standards and guidelines.

The Risk Management and Compliance Department (RMCD) facilitates structured risk assessments conducted at various levels and covering all functions and business units. The coordinating role of the RMCD extends to the management of specialised cross-cutting risks, which include compliance and business continuity management. The RMCD also coordinates and facilitates continual risk management activities, which include reporting risk incidents, monitoring the implementation of action plans to mitigate identified residual risks, and implementing and monitoring key risk indicators.

Ethics management is facilitated by the RMCD, including the management of ethics risk assessments, commercial crime risk assessments and employee declarations. An ethics policy, framework and procedures are in place to prevent unethical behaviour or unlawful conduct and to manage instances of such behaviour when they occur.