KPMG’s representative in Mozambique, Joaquim Muando, has called on companies to adopt greater rigor in defining risk management limits and policies, arguing that this function should be at the core of corporate governance. His remarks were made during the panel on corporate risk management and compliance at the 1st Corporate Governance Congress of Mozambique, held this Thursday (14) in Maputo.
Muando stressed that it is the responsibility of the Board of Directors to define the so-called “risk appetite” and set clear boundaries for assuming risks, balancing return and safety. “If there is no risk, there is no return, but it is essential to know how far one can go,” he stated, noting that strategic decisions, such as investing own assets or engaging with partners linked to illicit activities, require objective and prudent criteria.
The KPMG executive also highlighted that risk culture must be led from the top of the organization, with a clear commitment from leadership to align internal practices with compliance and prevention standards.
To this end, he advocated for a clear distinction of roles between governing bodies: the Board of Directors as responsible for defining and implementing risk strategy; the Audit Committee as the independent supervisor of its enforcement; and the General Assembly as the accountability forum, which should question and scrutinize rather than merely validate reports and accounts.
According to Muando, the oversight role of governing bodies should go beyond the formal verification of accounts, covering the prevention and mitigation of corporate risks, including reputational, financial, and money laundering risks. “Risk management is not just a technical function — it is a leadership commitment that protects the assets and reputation of companies,” he concluded.
The panel was part of the 1st Corporate Governance Congress of Mozambique, organized by the Mozambican Institute of Corporate Governance Association (IGCMZ) with the support of Standard Bank, bringing together national and international directors, managers, and specialists to discuss modern governance practices in the public and private sectors.
Text: Felisberto Ruco
