1. UNIVERSITY OF BALLARAT RISK MANAGEMENT OVERVIEW OF THE DEVELOPMENT OF POLICIES AND PROCEDURES John Gavens Managing Principal

2. RISK MANAGEMENT POLICIES AND PROCEDURES INTRODUCTION INTRODUCTION BACKGROUND BACKGROUND RISK ASSESSMENT vs RISK MANAGEMENT RISK ASSESSMENT vs RISK MANAGEMENT DEVELOPMENT PROCESS DEVELOPMENT PROCESS DRAFT POLICY DRAFT POLICY DRAFT PROCEDURES DRAFT PROCEDURES

3. RISK MANAGEMENT POLICIES AND PROCEDURES INTRODUCTION WHAT IS RISK? The chance of something happening that will have an impact upon objectives. (AS/NZS 4360:1999)

4. RISK MANAGEMENT POLICIES AND PROCEDURES INTRODUCTION WHAT IS RISK MANAGEMENT? The culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects (AS/NZS 4360:1999)

5. RISK MANAGEMENT POLICIES AND PROCEDURES INTRODUCTION WHY DEVELOP RISK MANAGEMENT POLICIES AND PROCEDURES? To assist in achieving the objectives of the University through a comprehensive, systematic and targeted process

6. RISK MANAGEMENT POLICIES AND PROCEDURES INTRODUCTION OTHER FACTORS University risk assessment 2001 University risk assessment 2001 Worldwide focus on governance and accountability Worldwide focus on governance and accountability Financial Management Act 1994 and associated compliance framework Financial Management Act 1994 and associated compliance framework Victorian Managed Insurance Authority Act 1994 Victorian Managed Insurance Authority Act 1994

7. RISK MANAGEMENT POLICIES AND PROCEDURES BACKGROUND Financial Management Act and Audit Committee charter Financial Management Act and Audit Committee charter Risk assessment 2001 Risk assessment 2001 Risk register follow up Risk register follow up Outstanding item – risk management policies and procedures Outstanding item – risk management policies and procedures

8. RISK MANAGEMENT POLICIES AND PROCEDURES RISK ASSESSMENT vs RISK MANAGEMENT Risk assessment Snapshot/static Snapshot/static Risk management Continuous/dynamic Continuous/dynamic

9. RISK MANAGEMENT POLICIES AND PROCEDURES DEVELOPMENT PROCESS Develop and approve policy Develop and approve policy Develop and approve procedures Develop and approve procedures

10. RISK MANAGEMENT POLICIES AND PROCEDURES DEVELOP AND APPROVE POLICY Draft policy content University commitment to risk management in accordance with AS/NZ standards University commitment to risk management in accordance with AS/NZ standards Ultimate responsibility with Vice-Chancellor Ultimate responsibility with Vice-Chancellor Delegated responsibility to responsible officers Delegated responsibility to responsible officers

11. RISK MANAGEMENT POLICIES AND PROCEDURES DEVELOP AND APPROVE POLICY Process Distribute draft policy and associated Risk Map to the University community for comment on 24 September 2003 Distribute draft policy and associated Risk Map to the University community for comment on 24 September 2003 Receive comments from University community by 24 October 2003 Receive comments from University community by 24 October 2003 Review comments received and revise policy as appropriate Review comments received and revise policy as appropriate

12. RISK MANAGEMENT POLICIES AND PROCEDURES DEVELOP AND APPROVE POLICY Process (cont.) Draft Policy to be provided to the Vice- Chancellor for consideration by 31 October, 2003 Draft Policy to be provided to the Vice- Chancellor for consideration by 31 October, 2003 Submit revised draft policy to Audit Committee for approval on 12 November 2003 Submit revised draft policy to Audit Committee for approval on 12 November 2003 Subject to approval, submit to University Council for approval Subject to approval, submit to University Council for approval

13. RISK MANAGEMENT POLICIES AND PROCEDURES DRAFT PROCEDURES Draft procedures content Overview of the risk management process Overview of the risk management process Outline of the University risk management implementation structure Outline of the University risk management implementation structure

14. RISK MANAGEMENT POLICIES AND PROCEDURES PROPOSED STRUCTURE Earned Income Committee to become Risk and Earned Income Committee (REIC) Earned Income Committee to become Risk and Earned Income Committee (REIC) REIC to be responsible to the Vice-Chancellor for Risk Management REIC to be responsible to the Vice-Chancellor for Risk Management Schools/Sections to be responsible for development and maintenance of their Risk Registers and will be accountable to the REIC for actions and outcomes against risks identified Schools/Sections to be responsible for development and maintenance of their Risk Registers and will be accountable to the REIC for actions and outcomes against risks identified

15. RISK MANAGEMENT POLICIES AND PROCEDURES TRANSITIONAL ARRANGEMENTS Draft Risk Management procedures to be developed following approval of Risk Management policy Draft Risk Management procedures to be developed following approval of Risk Management policy Consultation with University community prior to submission of Risk Management procedures to Vice- Chancellor for approval Consultation with University community prior to submission of Risk Management procedures to Vice- Chancellor for approval Strategic risk assessment scheduled by Audit Committee to be completed by internal audit in first half of 2004. Likely involvement of extended senior leadership team. Strategic risk assessment scheduled by Audit Committee to be completed by internal audit in first half of 2004. Likely involvement of extended senior leadership team. Phase in of requirement for Schools/sections to develop and maintain risk registers including training Phase in of requirement for Schools/sections to develop and maintain risk registers including training

16. RISK MANAGEMENT POLICIES AND PROCEDURES REMINDER 24 October 2003 Closing date for submissions on draft policy Comments to Robert Hook