72.2 CORPORATE GOVERNANCE
72.3 OPERATIONAL RISK
72.4 KING COMMITTEE ON CORPORATE GOVERNANCE
72.5 CAPITAL CHARGE FOR OPERATIONAL RISK
72.6 FINANCIAL SECTOR CHARTER
South Africa has been called the "Hub of Africa" because so many financial and business transactions flow through the country from the rest of the continent. The major South African banks have developed a vast outreach, and now provide a service to many other countries in Africa and elsewhere. However, at the same time, it is important to demonstrate a solid commitment to good corporate governance practices. Essentially, this entails that South African banks should think how they must approach and attain a reputable and beneficial framework of corporate governance that is aligned with the basic guidelines and requirements thereof. This includes a sound approach to risk management.
This chapter aims to discuss basic concepts of corporate governance and risk management within the African environment with specific reference to the South African banking industry.
Most South African banks have accepted operational risk as a major risk type that must be managed. This decision was enhanced by a number of major events and developments on an international front. Of these, the following played a major role in the decision to embed a formal operational risk management ...