Assessing and managing risk

Managing risk is a core part of good governance and supports entities to achieve their purposes in a changing operating environment. It involves identifying and assessing risks, deciding how they will be treated, and embedding controls and responsibilities into day-to-day decision-making. An effective approach to risk management helps entities respond to uncertainty, protect public resources and support informed decisions. Effective risk management should also consider integrity risks, including risks relating to fraud, corruption, conflicts of interest, misuse of information and inappropriate conduct.