CEI 2.1 Risk Management

1. Scope of these Instructions

These Chief Executive’s Instructions (CEI) outlines the Department of Agriculture Fisheries and Forestry’s (department) approach to risk management and the responsibilities of all officials with respect to risk management.

Information on the process and tools for risk analysis and management can be found in ‘ Guide to risk management in DAFF and the Risk Assessment Tools’.

2. Policy Principles

The department operates in a dynamic and complex environment. Risk management provides a means to ensure that we can identify and respond to the potential risks and uncertainties of our environment and identify opportunities that enable the development of policies and programs that meet our stakeholders’ expectations; demonstrate effective and efficient use of resources and ensure the timely delivery of high quality services.

Risk management helps us to make informed decisions and identify and harness these opportunities. It is an important part of our strategic approach to decision making, underpins the more effective delivery of our performance outcomes and is a key governance and management tool.

The department:

• operates a risk management framework that identifies and manages risks, in accordance with AS/NZS ISO 31000:2009 Risk Management – Principles and guidelines
• ensures that our risk management framework is regularly reviewed and improved in order to ensure it keeps pace with the department’s contemporary business needs
• promotes an internal culture of both collective and individual responsibility for management of risks so that DAFF can better deliver its performance outcomes.

All officials involved in developing risk management strategies must adhere to the fundamentals of good judgement/decision making and maintain adequate records.

By maintaining these principles the department is able to understand and better manage its risks and fulfil its requirements under the Financial Management and Accountability Act 1997 (FMA Act) relating to the proper use of the Commonwealth resources.

3. Target Audience

This CEI is applicable to all officials in the department.

4. Departmental instructions

4.1 Responsibilities

The secretary:

The secretary has the ultimate accountability and overall responsibility for the department’s performance including the accountability for management of risks and the delivery of outcomes and priorities to government.

Executive management team:

The Executive Management Team supports the secretary by developing the strategic risk profile, reviewing divisional business risks, reviewing and assessing risk treatments for significant and critical risk areas, reviewing and monitoring the department’s risk profile and ensuring that the risk management framework is implemented across the department.

Executive managers, Division Heads:

Executive Managers and Division Heads are responsible for identifying, documenting, prioritising and monitoring risks in their divisions. They must ensure the implementation of the risk management framework, promote and encourage the use of risk management tools and processes in their divisions, ensure risk management plans are regularly reviewed and updated, and monitor risks.

Audit committee:

The Audit Committee oversights the risk management framework, reviews risk treatments and monitors the implementation of the risk management plan.

Business improvement committee:

The Business Improvement Committee provides strategic advice to the secretary on a range of business improvement change management matters including risk management.

Officials:

As risk impacts the outcome of all work in the department, all officials carry responsibility for the identification and management of risks that impact on their work areas. All officials should recognise, communicate and respond to expected, emerging or changing risks and contribute to the development and implementation of risk treatments in their area of responsibility. Additional guidance on risk management is provided on MyLink. Officials are responsible for following these policies and procedures.

5. Breaches

Officials are bound by section 13 of the Public Service Act 1999 (the PS Act Code of Conduct) and section 44 of the FMA Act to use Commonwealth resources in an efficient, effective and ethical manner. Officials who do not comply with this CEI may be found to be in breach of these provisions and sanctions may apply.

6. References

6.1 Legislation

• Financial Management and Accountability Act 1997 (s) 44

6.2 Internal guidance/instruction

• Risk Management page on MyLink

6.3 External guidance/instruction

• Finance Circular 2011/05 – Chief Executive's Instructions
• Business Continuity Management Building resilience in public sector entities
• AS/NZS ISO 31000:2009 Risk Management – Principles and guidelines
• Risk Management Better Practice Guide ComCover 2008

7. Definitions and Acronyms

Change History