The reviewed Risk Management Policy and Framework was adopted by Council on 05 December 2014. The Policy has been reviewed and the Audit and Risk Committee section added. It has been approved by Audit and Risk Committee and shared for approval.
The document establishes the processes by the Council will manage its risks. The Council has utilised the approach established in the AS/NZS 31000:2009 Australian Standard and adopts this as its basic approach to risk management. According to the standard, in order for a risk management approach to be effective a framework should be established that integrates the process for managing risk into the organization's overall governance, strategy and planning, management, reporting processes, policies, values and culture. The Risk Management Policy and Framework and its associated Risk Management Plan assists in this process.
The management of risk within the Council should assist by:
- Increasing the likelihood of achieving objectives;
- fostering a culture of proactive management;
- increasing awareness of the need to identify and treat risk throughout the organization;
- improving the identification of opportunities and threats;
- improving financial reporting;
- improving governance;
- improve stakeholder confidence and trust;
- establish a reliable basis for decision making and planning;
- improving operational effectiveness and efficiency;
- enhancing health and safety performance as well as environmental protection;
- improving loss prevention and incident management;
- minimizing losses; and
- improving the Shire’s resilience.