The risk culture of a public sector regulatory entity

Abstract

There is a scarcity of published information on risk culture in the public sector regulatory environment in South Africa. The public sector regulatory entity in this study was established by an Act of Parliament to safeguard the interests of housing consumers and to regulate the homebuilding industry. This entity faces threats as it delivers on its mandate from political, economic and operational environments. This study assessed the perception of risk culture, at different employment levels, and in terms of different roles of employment, in the public sector regulatory entity selected for study. The assessment was based on evidence from the literature and a questionnaire survey. The survey was distributed to approximately 600 employees of the chosen organisation. The results showed a relatively high level of perception of risk culture among the senior management employees compared to middle management and non­management staff. Furthermore, the study found significant differences in the risk culture perceptions between members of the risk section and the rest of the organisation. Training was cited as the intervention required most to improve the maturity of the risk culture, followed by improved communication. This study demonstrated also an effective technique for assessing risk culture, and for obtaining recommendations for improving risk culture maturity, of the regulatory entity studies and other similar organisations. This study could be the first of its kind to address a public sector regulatory entity.