The 6 Rs for managing conflicts of interest
The approach taken will be proportionate to the risk.
These strategies are listed from lowest to highest response level.
Register (minimum requirement) – Declare and document the interest
Circumstances when this action may be appropriate or sufficient:
- The conflict is very low risk and of no major concern (for example, apparent, but not real conflict).
- Declaration of the interest is sufficient to ensure transparency.
Circumstances when this action may not be appropriate or sufficient:
- Potential or perceived effect of the conflict on the performance of duties requires more proactive management.
Restrict – Restrict involvement in the matter
(For example, limited access to information, withdraw from discussions, abstain from decisions.)
(For example, limited access to information, withdraw from discussions, abstain from decisions.)
Circumstances when this action may be appropriate or sufficient:
- There can be effective separation from parts of the matter.
- The conflict is not likely to frequently arise.
Circumstances when this action may not be appropriate or sufficient:
- The conflict is likely to arise frequently (ad hoc restriction is not viable).
- Performance of duties is significantly affected in managing the conflict.
Recruit – Recruit a third party to oversee the matter
(For example, probity advisor or increasing the number of people sitting on a decision-making body.)
(For example, probity advisor or increasing the number of people sitting on a decision-making body.)
Circumstances when this action may be appropriate or sufficient:
- Restrict or remove is not viable.
- The conflict is reasonably apparent, but not real.
- The conflict is identified near the conclusion of a process.
Circumstances when this action may not be appropriate or sufficient:
- The conflict is serious and ongoing (ad hoc recruitment of other is not viable).
- Third party involvement is not appropriate for the proper handling of the matter.
- An appropriate third party is unable to be sourced.
Remove – Removal from the matter and/or reassignment of duties
Circumstances when this action may be appropriate or sufficient:
- Restrict, recruit or relinquish is not viable.
- Where COI is serious and ongoing.
Circumstances when this action may not be appropriate or sufficient:
- The conflict and its effects are of low risk and/or low significance.
- The interest holder is prepared to relinquish the interest rather than significantly change their duties.
Relinquish – The interest creating the conflict be relinquished
Circumstances when this action may be appropriate or sufficient:
- Remove is not viable.
- The interest holder’s commitment to public duties outweighs attachment to the interest.
Circumstances when this action may not be appropriate or sufficient:
- The interest holder is unable or unwilling to relinquish the interest.
- The conflict and its effects are of low risk and/or low significance.
Resign – Role/position ceased
Circumstances when this action may be appropriate or sufficient:
- No other actions are viable.
- This action is a matter of personal preference for the interest holder.
Circumstances when this action may not be appropriate or sufficient:
- The conflict and its effects are of low risk and/or low significance.
- Other actions would appropriately manage the conflict.
Due diligence questions
When engaging with the non-government sector, the organisations you are engaging will be required to declare their material interest so that you can make an assessment on whether there are conflicts. To support you in undertaking due diligence, you may consider asking additional questions to identify if there any interests that may be material and potentially lead to a COI.
Asking the right questions will support a due diligence process. Below are some questions you could consider asking as part of the due diligence process.
These questions are suggestions only and may not be applicable all of the time. Entities are encouraged to apply discretion in determining which questions will be most appropriate based on the context of your engagement.
Policy
By asking specific questions, you can gain a better understanding of the potential COIs that may arise during the policy consultation process and take appropriate measures to mitigate them.
Financial Interests
- Does your organisation or any of its officers who are involved in the policy proposal have any financial interests, such as investments or shareholdings, in industries or sectors that could be directly or indirectly impacted by the proposed policy?
- Does your organisation or any of its employees who are involved in the policy proposal have any business partnerships with entities, or clients that engage with your organisation’s services that could benefit or be significantly affected by the policy's implementation?
- Does your organisation have any ongoing contracts, partnerships or other arrangements with other organisations that could influence your organisation’s stance/advice on the policy/proposal being consulted on?
Personal Relationships
- Does your organisation or any of its employees who are involved in the policy proposal have family or close personal relationships (including social and business relationships) with individuals or organisations who could:
- benefit from this engagement?
- influence the outcome of this engagement?
Intellectual Property
- Does your organisation hold any intellectual property rights that could be affected by the proposed policy?
- Does your organisation have any projects, products or services that could be influenced by the policy's direction?
Industry Associations and Lobbying
- Does your organisation support, work for, or have membership of any industry associations or lobby groups that have an interest in the policy proposal?
- Has your organisation engaged in lobbying activities related to this policy, either directly or through third-party organisations?
- Has your organisation provided any financial contributions to political parties or candidates that could influence the policy's development?
Long-Term Implications
- What are the potential long-term implications of the proposed policy for your organisation's business model and future operations?
- How will the policy impact your organisation's ability to innovate and compete in the marketplace?
Procurement
By asking specific questions, you can gain a better understanding of the potential COIs that may arise during the procurement process and take appropriate measures to mitigate them.
Financial Interests
- Does your organisation or any of its employees who are involved in the procurement/contract (including their family) have any other financial interests, such as investments or shareholdings, in other companies that could benefit from this contract, beyond the direct contractual payments?
- Does your organisation have any existing or planned joint ventures, partnerships, or collaborations with other companies that could benefit or be significantly affected by this contract?
- Does your organisation receive any funding or grants from entities that could benefit or be significantly affected by how you deliver the outcomes for this contract?
- Does your organisation or any of its employees who are involved in the procurement/contact have any financial interests in companies that could be suppliers or subcontractors for this contract?
- Does your organisation have any financial relationships with consultants or advisors who could influence the terms of this contract?
Personal Interests
- Do any of your organisation’s employees who are involved in the procurement/contract have social or business relationships with individuals or organisations that could benefit from or be affected by this contract?
- Do any of your organisation’s employees who are involved in the procurement/contract have family members or close friends who work for government entities or other organisations that could benefit or be affected by this contract?
- Does your company have any employees who are involved in the procurement/contract who are former public officials or employees who have insider knowledge that could unfairly benefit the organisation in the procurement process?
Corporate Structure and Ownership
- Can you provide a copy of your organisation corporate structure and ownership? This will assist in determining if there any related parties or internal/external affiliates of your organisation that could benefit from this contract, even if they are not directly involved in the bidding process.
- Are there any undisclosed financial relationships between your company and other companies that could influence how you deliver the outcomes of this contract?
Long-Term Implications
- Is your organisation seeking to expand into new markets or industries, or additional pro bono work within the department, that could be facilitated by this contract? If yes, how?
Grants
By asking specific questions, you can identify potential COIs and take steps to mitigate them, ensuring that the grant funds are used effectively and ethically.
Financial Interests
- Does your organisation or any of its board members, employees or volunteers who are involved in grants administration processes (such as the design of the grant program and its intended outcomes) (or their family) have any financial interests, such as investments in funds or portfolios or shareholdings, in companies or organisations that could be affected by the grant?
- Does your organisation receive any funding or grants from other entities that could benefit or be significantly affected by using this grant?
- Does your organisation have any ongoing contracts, partnerships or other arrangements with other organisations that could influence the selection of your proposed grant activity during the application process?
- Do employees in your organisation have any family members or close personal friends who work for companies or other organisations that could benefit from the grant?
Personal Interests
- Do any of your organisation’s employees who are involved in the grant process have social or business relationships with individuals or organisations that could benefit or be affected from this grant?
- Do any of your organisation’s employees who are involved in the grants administration process have family members or close friends who work for other organisations that could benefit or be affected by this grant?
- Does your organisation have any employees who are involved in the grant process who are former public officials that had access to official information relevant to the matter?
Corporate Structure and Ownership
- External to your organisation, are there any related parties or affiliates that may gain financially from the use of the grant funds?
- Are there any undisclosed financial relationships between your organisation and other organisations that could influence how you deliver the outcomes of this grant?
Long-Term Implications
- Does your organisation have any plans for future partnerships or collaborations with other organisations that could benefit or be affected by this grant? If yes, how?
Other forms of financial arrangements
By asking specific questions, you can gain a better understanding of the organisation's financial interests, corporate structure, and potential COIs, which will help you make informed decisions about the financial arrangement.
Financial Interests
- Does your organisation or any of its employees who are involved in the financial arrangement own stock, bonds, or other securities in companies that could benefit or be affected by this financial arrangement?
- Does your organisation have any loans or other financial obligations to entities that could be influenced by this financial arrangement?
- Does your organisation have any investments in funds or portfolios that could benefit or be affected from this financial arrangement?
Personal Interests
- Do any of your organisation's board members or staff have social or business relationships with individuals or organisations that could be affected or benefit from this financial arrangement?
- Do your employees in the organisation have any family members or close personal friends who work for companies or organisations that could be affected or benefit from this financial arrangement?
- Does your organisation have any employees who are involved in the financial arrangement who are former government officials or employees who have insider knowledge that could unfairly benefit the organisation in the financial arrangement process?
Corporate Structure and Ownership
- Does the organisation have any related parties or affiliates, such as subsidiaries, parent companies, or joint ventures that could benefit or be affected by this arrangement?
- Are there any undisclosed financial relationships between your organisation and other organisations that could influence the outcomes of this financial arrangement?
- Does your organisation or any of its board members or employees who are involved in the financial arrangement (including family) have any financial interests, such as investments in funds or portfolios or shareholdings, in companies or organisations that could be affected by the outcomes of this financial arrangement?
Long-Term Implications
- Does your organisation have any plans to acquire or invest in companies that could benefit from this financial arrangement?
- Does your organisation have any future business plans or strategies that could be influenced by this financial arrangement?
Regulatory
Financial Interests
- Do you or any family member have any financial interest, such as investments or shareholdings, in any company or organisation that is regulated by your entity?
- Do you or any family member receive any income, gifts, or benefits from any company or organisation that is regulated by your entity?
- Do you have any personal loans or financial obligations to any company or organisation that is regulated by your entity?
- Does your entity have any contracts/partnerships/other arrangements with organisations that are also party to regulatory arrangements administered by your entity?
Personal Interests
- Do you have any personal relationships with employees or executives of companies or organisations that are regulated by your entity?
- Do you have any family or social relationships with individuals who could be affected by your entity’s decisions, processes or policies?
- Have you previously worked for or consulted with any company or organisation that is regulated by your entity?
Professional Affiliations
- Do you belong to any professional organisations or associations that have a vested interest in the industry regulated by your entity?
- Do you participate in any industry conferences or events that could expose you to potential conflicts of interest?
Political Affiliations
- Do you or any family member have any political affiliations or connections that could influence your decision-making or the entity’s regulatory actions?
- Have you or any family member made any political contributions or donations to candidates or political parties that could be affected by your entity's decisions?
Future Plans
- Do you have any plans to work for or consult with any company or organisation that is regulated by your entity after leaving government service?
- Do you have any plans to start your own business in the industry regulated by your entity?
Public Perception
- Could your actions or decisions be perceived as biased or unfair by public or industry stakeholders?
- Could your actions or decisions damage the public's trust in the regulatory process?
