The revised Commonwealth Risk Management Policy (the Policy) takes effect from 1 January 2023.
Click here to review the Policy which sets out the principles and mandatory requirements for effectively managing risk.
The Policy supports section 16 of the Public Governance, Performance and Accountability Act 2013 which requires accountable authorities of all Commonwealth entities to establish and maintain appropriate systems of risk oversight, management and internal control for the entity. The Policy is mandatory for all non-corporate Commonwealth entities and recommended as best practice for corporate Commonwealth entities.
Changes to the Policy include:
• a new element requiring entities to regularly review control effectiveness
• a new element requiring entities to have arrangements in place for identifying, managing and escalating emerging risks
• the inclusion of specific risk management responsibilities that should be defined in an entity’s risk management framework
• the simplification and consolidation of existing elements, including the use of clearer language and a reduction in complex risk management terminology.
The changes to the Policy were the result of a comprehensive review guided by a steering committee of senior executives from a cross section of Commonwealth entities.
Over 30 Commonwealth entities and a number of external stakeholders informed the development of the revised Policy as part of the extensive consultation process undertaken. We would like to thank everyone who participated in this process.
The collaborative process used to develop the Policy reflects Finance’s continuous focus on building strong relationships with entities across the Commonwealth.
As the steward of risk management in the Commonwealth, Finance will continue to provide ongoing risk management support to entities across the Commonwealth by delivering a range of risk management resources and advisory services, including Comcover’s education program.
To supplement the wide range of existing support services, Finance will be releasing the updated companion guide to the Policy (RMG 211 – Guide to Implementing the Commonwealth Risk Management Policy) and new guidance materials on the new Risk Management Services website over the coming weeks.