Risk Management
As part of its corporate governance framework the department has established mechanisms to identify, monitor and manage general business risks, including fraud risk in particular.
General Business Risk
Finance promotes risk management at all levels of the organisation as a tool to ensure that the way the department operates and the advice it provides to its Ministers and other departments is of the highest standard. Finance’s risk management framework is consistent with the Australian and New Zealand Risk Management Standard (AS/NZS 4360:2004).
The department encourages staff to undertake risk assessments for business planning purposes and for projects as part of good business practice. The Office of the Chief Audit Executive includes a specialist risk management team that supports staff to manage business and project risks. In addition, the Audit Committee, Internal Audit Unit, Chief Audit Executive and Executive Board encourage the application of risk management techniques to all aspects of Finance’s work. The department’s Operational Guidelines require formal risk assessments to be undertaken for all procurement activities exceeding $80,000 and for all complex or high-risk procurements.
Finance’s Office of the Chief Audit Executive coordinates the maintenance, development and testing of departmental business continuity plans to prepare Finance to cope with a range of business interruption events.
Fraud Prevention and Control
Finance maintains a comprehensive Fraud Control Plan that complies with the Commonwealth Fraud Control Guidelines 2002. The department regularly reviews fraud prevention and control measures and is committed to continuous improvement associated with fraud prevention and detection. On 23 June 2009, the Fraud Control and Ethics Plan 2009-11 replaced the Fraud Control and Ethics Plan 2007-2009 and the department is currently implementing the strategies for raising awareness and for fraud prevention set out in the plan. Finance has completed and submitted the Institute of Criminology's annual survey of fraud control activity in Australian Government agencies for 2008-09.
The Finance Audit Committee, Chief Audit Executive, Departmental Security Team and IT Security Adviser have ongoing responsibility for assessing fraud risks and implementing fraud prevention, detection, investigation and reporting measures.