The effective management of risk is central to the achievement of Eskom’s vision of providing sustainable electricity solutions to grow the economy and improve the quality of life of the people of South Africa and the region. By understanding and managing risk, Eskom can provide greater certainty and security for its employees, customers and all stakeholders.

The Eskom board, through the audit and risk committee, acknowledges its overall accountability for ensuring an effective results-driven, IRM process. Exco has implemented a risk monitoring system that enables management to respond appropriately to all significant risks that could impact on business objectives.

Responsibility for the management of risk resides with line management in all operating units and projects. Those accountable for the management of risks also ensure that the necessary controls remain in place and are effective at all times. Control effectiveness focuses on improving Eskom’s ability to manage risk effectively, so that it can quickly and confidently act on opportunities to improve and sustain the quality and continuity of supply, create value and achieve sustained growth.

Risk management in Eskom is performed at departmental, regional, operating unit and subsidiary level and is reported upward to corporate (bottom-up). After consolidation of these integrated risk reports, Exco and the board audit and risk committee review and evaluate the risk profile to determine the major operational, strategic and business continuity risks (top-down). See the risk section.