Managing Risk
To be successful in its role, the Treasury is required to identify and manage the internal and external risks that can impact on delivering on its core outcomes and objectives (risk is defined as “the effect of uncertainty on objectives”). The Treasury's ability to manage in an uncertain and changeable operating environment requires an effective risk management framework.
The Treasury operates a simplified risk management framework that is consistent with the Australia and New Zealand international standard[4] and meets its operating needs. Our Executive Leadership Team regularly identifies and evaluates our biggest strategic and emerging risks, and ensures we take appropriate actions to manage these. Line managers follow a similar approach for operational risks.
Set out below is a summary of the Treasury's core organisational risks and the strategies in place to manage them.
| Core organisational risk | Strategies in place to mitigate the risk |
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Fiscal and Economic Advisor Risk that the Treasury, as the Government's lead economic and financial advisor, could fail to deliver high-quality policy advice that transforms and delivers on the Government's fiscal, regulatory and economic policy agenda. |
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Corporate Centre and State Sector Leadership Risk of loss of influence on, and support from, the State sector to deliver on the Government's priorities. |
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Financial Management of the Crown's Balance Sheet Risk of failure to effectively manage the Crown's financial assets and liabilities. |
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The Treasury's Capability and Capacity The Treasury's is reliant on having sufficient highly skilled and experienced staff to deliver on its work programme. There is a risk that the Treasury may not be able to attract, develop and retain sufficient numbers of people with the appropriate skills and experience. |
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Central Agencies Shared Services CASS could fail to deliver the benefits expected within the agreed timeframe. |
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Notes
- [4]Joint Australian New Zealand International Standard Risk Management - Principles and Guidelines - AS/NZ ISO 31000:2009.
