Statement of Intent 2008 - Managing in a changing environment
Opportunities and risks
Responding to the needs of children, working age people, families and communities involves managing significant financial, physical and people resources. This inherently carries risk as well as opportunities.
Risk management is continuous. Whether the decisions involved are about everyday operations or major policies and strategies, the effective application of risk management is essential.
All managers and staff are expected to manage risk and reduce the likelihood of failure, error or disruption. This involves identifying, analysing and treating risks within our workplace and escalating these where necessary so that business objectives and potential opportunities are realised.
Primarily, our risk management approach provides staff with the tools to be more effective in risk management activities, and to take it beyond a compliance exercise.
Our risk management tools, in the form of a Risk Management Handbook, are available to all staff both in hard copy and online.
How we manage risk
Seven principles guide our approach to risk management. They support a flexible process while ensuring consistency and transparency across the Ministry:
- the Chief Executive and Leadership Team lead and promote risk management across the Ministry
- we are risk-aware and take responsibility for managing risk
- staff are encouraged and supported to escalate risks as required
- we openly and constructively engage in risk discussions at all levels
- we integrate risk management into all decision-making and planning processes
- we proactively manage risk to reduce the consequence and likelihood of adverse events occurring
- we maintain flexible risk management processes while ensuring that key elements are consistent throughout the Ministry.
Each business unit takes responsibility for managing its own risks. All staff are building a clear understanding of the risks involved in their business activities and the practices in place to manage them. We are actively improving the flow of risk information across the Ministry to ensure we manage risk collaboratively.
We have moved from a compliance-and-control-based risk management approach, to a risk-smart culture where we expect to see business units evidencing that they have:
- a clear understanding of the key business objectives they are managing and the controls that support them
- robust identification, assessment and management of the risks to those objectives
- integrated risk principles into all business strategies, projects, activities and management systems
- a flexible approach to risk management that effectively monitors and manages the changing risk environment
- identification and management of risk throughout the development and implementation of any business plan, policy, programme or project.
How we manage fraud
It is extremely important that New Zealanders have trust and confidence in the way the Ministry operates. The occurrence of internal and external fraud is a key risk for the Ministry. When it happens, stakeholder confidence in the integrity of our stewardship and operations is undermined.
We will continue to future proof, strengthen and enhance our practices and procedures to build a risk-smart culture that maintains public trust and confidence in our ability to professionally manage the operations for which the Ministry is responsible.
Environmental scanning and keeping abreast of the operating environment
The Ministry, and its Leadership Team, has governance mechanisms in place that assist in the identification of future and current risks. These mechanisms include:
- an Audit Committee that operates independently of the Chief Executive and has a mandate to look across all our activities. This committee meets four times a year. Membership comprises three external members with extensive experience in public and private sector financial and risk management, one of whom is the chair and internal senior management covering delivery, policy and corporate functions
- the Leadership Team receives quarterly updates on potential and identified strategic and environmental risks.
