The Government has today launched the first whole-of-Government policy for the management of risk.
Previously, Commonwealth departments and agencies managed risk individually, without an overarching framework or clear guidance about whole-of-Government expectations and obligations.
The Commonwealth Risk Management Policy requires Government departments and agencies to define: the tolerance for risk, including for the Government and the community; ownership of risk within their respective organisations; and how entities engage with risks for which they cannot take full responsibility.
A professional approach to risk requires a shift to efficient and informed risk management. The policy acknowledges that engaging with risk is a necessary part of improving performance.
Government officials that are better able to engage with risk are less likely to develop regulatory frameworks that are unnecessarily prescriptive and out of step with commercial practice.
Comcover, the Commonwealth s general risk insurer, will continue to work closely with Commonwealth entities to improve their risk management performance and capability. The Public Governance, Performance and Accountability Act 2013 establishes a formal requirement for all Commonwealth departments and agencies to formalise how they manage risk. The policy launched today gives clarity on what is needed to implement an effective risk framework.
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