Key risks What actions were taken to What further actions will be taken For emerging/ongoing risks manage the risks over the past to manage the risks in the provide a Risk Rating (low, year? coming year? medium, high, very high) Political instability leads to Strong engagement with central Ongoing open dialogue with the High • changes in policy direction agencies for oversight of policies Vanuatu Government. and key stakeholders, and expenditure. resulting in diminished Regular dialogue with relevant • understanding and senior officials. sustainability of the Australian aid program. Work to agreed priorities and • work Poor planning and human Recruit HR and Capacity Ongoing engagement with key High • resource management Development advisers where stakeholders, such as PMO / impacts negatively on appropriate. MFEM / PSC on human resource effectiveness, efficiency and management. Strong engagement and policy • sustainability of programs. dialogue with relevant officials. Dialogue with development • partners. Coordinate efforts and • messaging with GfG. Ongoing dialogue with PMO / • MFEM / PSC on HR management. Weak partner government Work through managing Ongoing reporting, monitoring and High • financial systems and contractors and advisers where audits to ensure are spent fraudulent use of program to manage and appropriately and used to resources. monitor funds and processes strengthen local financial systems. Funds delivered in tranches as • appropriate. Regular reporting, acquittals • and audits required. Significant natural disaster Climate change and disaster Ongoing dialogue with partner High • disrupts implementation resilience built into aid programs. government. and/or relevance of programs. Crisis Action Plan updated. • May also have an impact on economic growth, which in Programs amended as • turn could lead to reduced appropriate following disasters to ministry budgets and capacity ensure continued relevance. to implement reforms / programs. Progress addressing last year’s management responses was mixed. Annex A provides detail. Proposed management responses for 2016-17 are as follows. Finalise a new aid partnership between Vanuatu and Australia, sets objectives for the program, provides greater strategic coherence and outlines clear performance benchmarks and mutual obligations.
Key risks What actions were taken to manage the risks over the past year? What further actions will be taken to manage the risks in the coming year? For emerging/ongoing risks provide a Risk Rating (low, medium, high, very high) Political instability leads to changes in policy direction and key stakeholders, resulting in diminished understanding and sustainability of the Australian aid program. • Strong engagement with central agencies for oversight of policies and expenditure. • Regular dialogue with relevant senior officials. • Work to agreed priorities and work Ongoing open dialogue with the Vanuatu Government. High Poor planning and human resource management impacts negatively on effectiveness, efficiency and sustainability of programs. • Recruit HR and Capacity Development advisers where appropriate. • Strong engagement and policy dialogue with relevant officials. • Dialogue with development partners. • Coordinate efforts and messaging with GfG. • Ongoing dialogue with PMO / MFEM / PSC on HR management. Ongoing engagement with key stakeholders, such as PMO / MFEM / PSC on human resource management. High Weak partner government financial systems and fraudulent use of program resources. • Work through managing contractors and advisers where to manage and monitor funds and processes • Funds delivered in tranches as appropriate. • Regular reporting, acquittals and audits required. Ongoing reporting, monitoring and audits to ensure are spent appropriately and used to strengthen local financial systems. High Significant natural disaster disrupts implementation and/or relevance of programs. May also have an impact on economic growth, which in turn could lead to reduced ministry budgets and capacity to implement reforms / programs. • Climate change and disaster resilience built into aid programs. • Crisis Action Plan updated. • Programs amended as appropriate following disasters to ensure continued relevance. Ongoing dialogue with partner government. High Progress addressing last year’s management responses was mixed. Annex A provides detail. Proposed management responses for 2016-17 are as follows. Finalise a new aid partnership between Vanuatu and Australia, sets objectives for the program, provides greater strategic coherence and outlines clear performance benchmarks and mutual obligations.