RISK OVERSIGHT AND MANAGEMENT Risk is inherent in delivering good policy design and achieving effective service delivery and operational outcomes. The challenge is to incorporate effective approaches to risk that allow us to maximise creativity while protecting the Department and the Government from unreasonable levels of risk. PM&C’s Risk Framework is regularly reviewed. The Policy and Framework is consistent with ISO 31000:2009. The Department has embedded risk management into its business and program planning processes. Risk is considered in decision-making activities and, in particular, when undertaking policy development and giving policy advice as well as planning for and undertaking significant projects and procurements, major events and taskforces, managing contracts and delivering programs. All risks with a rating of ‘very high’ identified throughout these processes must be escalated to the Executive Board for consideration. In 2017-18, we will restructure the Risk Management Framework. Reframing of risks at the strategic and enterprise levels will sharpen the focus on risks from external and internal sources and enhance the management of risk. The Department will strengthen divisional biannual business reporting to support the Executive Board review of risk and over the period of this plan. The Chief Risk Officer will continue to support the Executive Board and the Department by promoting risk identification and management. PM&C is committed to clear lines of accountability and delegating decision-making to employees at the most practical levels. This means those responsible for outcomes have the appropriate authority and are not hindered by unnecessary hierarchy. Risk management capability at all levels is central to our operations. The Department has financial delegations and formal instructions from the Secretary to support consistent decision and compliance with the Public Governance, Performance and Accountability Act 2013. The Department undertakes a broad range of activities and has a moderate risk appetite for pursuing opportunities aligned to purposes. There are circumstances where higher risk is acceptable if it offers significant
RISK OVERSIGHT AND MANAGEMENT Risk is inherent in delivering good policy design and achieving effective service delivery and operational outcomes. The challenge is to incorporate effective approaches to risk that allow us to maximise creativity while protecting the Department and the Government from unreasonable levels of risk. PM&C’s Risk Framework is regularly reviewed. The Policy and Framework is consistent with ISO 31000:2009. The Department has embedded risk management into its business and program planning processes. Risk is considered in decision-making activities and, in particular, when undertaking policy development and giving policy advice as well as planning for and undertaking significant projects and procurements, major events and taskforces, managing contracts and delivering programs. All risks with a rating of ‘very high’ identified throughout these processes must be escalated to the Executive Board for consideration. In 2017-18, we will restructure the Risk Management Framework. Reframing of risks at the strategic and enterprise levels will sharpen the focus on risks from external and internal sources and enhance the management of risk. The Department will strengthen divisional biannual business reporting to support the Executive Board review of risk and over the period of this plan. The Chief Risk Officer will continue to support the Executive Board and the Department by promoting risk identification and management. PM&C is committed to clear lines of accountability and delegating decision-making to employees at the most practical levels. This means those responsible for outcomes have the appropriate authority and are not hindered by unnecessary hierarchy. Risk management capability at all levels is central to our operations. The Department has financial delegations and formal instructions from the Secretary to support consistent decision and compliance with the Public Governance, Performance and Accountability Act 2013. The Department undertakes a broad range of activities and has a moderate risk appetite for pursuing opportunities aligned to purposes. There are circumstances where higher risk is acceptable if it offers significant
pmc-corporate-plan-2017-21.docx