New Government of South Australia New Government of South Australia Risk Management Policy StatementRisk Management Policy Statement

Darryl Bruhn

Risk Management Coordinator

SAICORP

History of Risk Management Policy History of Risk Management Policy StatementStatement

First released in 1995 and updated in 1999. Signed by

Treasurers Stephen Baker & Rob Lucas from the Liberal

government.

Re-released in 2003 by current administration and jointly

affirmed by the Premier and the Treasurer. This was done

to enact a recommendation contained in the Fahey

Report into the Public Sector Responsiveness in the 21st

Century review of May 2002.

Working PartyWorking Party

Stephen Blight, Director Risk Management & Audit, DFC

Julie Lister, Manager Internal Audit, DTEI

Mohua Mukherjee, Manager Strategic Risk & Audit, DECS

Peter Brass, General Manager, Risk Management & Audit,

PIRSA

Gordon Thomson, Manager Strategic Services, DTF

Romeo Rigon, Risk Adviser, Attorney Generals Department

Darryl Bruhn, Risk Management Coordinator, SAICORP

WP Assessment of 2003 PolicyWP Assessment of 2003 Policy

Essentially the policy was good and effective as the key risk management

driver although a little longwinded and repetitive.

Questioned the need to single out two specific requirements in the 2003

policy, namely:

Expectation that contractors to government demonstrate risk management and

SAICORP responsibility to provide advice to the Crown

Agreed that it was a matter of refining the existing statement.

to state accountabilities and responsibilities clearly.

to promote the use of risk management as a key business tool that increases the

achievement of government objectives

on the need for a central theme to market the policy – mantra

Influences on risk management requiring Influences on risk management requiring consideration since in 2003consideration since in 2003

State Strategic Plan issued and re-issued.

PSM (CE Accountability) Amendment Act 2005. This

is now reflected in the new Public Sector Bill.

Treasurer’s Instructions 2 replaces FMF references

and TI 28 on compliance issued.

Pending release of AS/NZS ISO 31000

Commitment StatementCommitment Statement

The South Australian Government recognises that

commitment to risk management contributes to

sound management practice and increasing

community confidence in government performance.

Mike Rann Kevin FoleyPREMIER TREASURER

Accountability StatementAccountability Statement

Public Sector Chief Executives are accountable to their Ministersfor the development and implementation of a risk managementframework specific to the organisation’s business and theorganisational context. The design of this framework reflects theprinciples and the process outlined in the international riskmanagement standard, AS/NZS ISO 31000.

Chief Executive accountability for risk management extends totheir agency contribution to the attainment of the whole ofGovernment economic, social and environmental objectivesstated in South Australia’s Strategic Plan.

The Guiding Principle – Risk The Guiding Principle – Risk Management MantraManagement Mantra

Risk management is underpinned by the key

principle that

“risk management contributes to

the creation of sustainable value”

Benefit of using Risk Management?Benefit of using Risk Management?

The consistent and systematic application of risk

management is central to maximising community

outcomes, effectively leveraging the benefit of

opportunities, managing uncertainty and

minimising the impact of adverse events.

Integration of Risk Management?Integration of Risk Management?

Risk assessment is integrated into planning and all

other activities of the agency including significant

proposals and cabinet submissions. The risk

information obtained is a fundamental consideration

in measured risk taking and decision making.

FinallyFinally Continues commitment to risk management of successive

governments since 1995. Key driver for risk management Positions risk management as a key business process for

achieving the SA Strategic Plan agenda. Promotes the development of risk management that is

organic and underpinned by the need to contribute to creation of sustainable value.

Provides an important source of information for decision-making purposes.

QUESTIONS ??