‘RISKY BUSINESS’An overview of the Commonwealth

Risk Management Policy

Mr Robert AntichAssistant Secretary

Risk, Insurance and Special Claims Branch

Department of Finance

Overview of presentation

• Comcover – what is it?• Commonwealth Risk Management Policy• Case studies: Home Insulation Program; Australian Electoral

Commission• Q&A

Comcover

In July 1998 Comcover was established by the Australian Government as a self-managed insurance fund, with two objectives:

• to provide a comprehensive insurance fund to protect Australian

Government agencies (agencies) against the impact of insurable losses; and

• to promote better practice risk management in agencies to improve policy formulation and delivery of Government programs and services, so as to deliver a net benefit to the Budget over the long term.

Comcover at a glance

Comcover

Relationship Management

Financial Management

Risk Management

Claims Management

$70 MillionAnnual Claims

1600+ Current Active Claims

$80 Billion Assets Insured

Comcover – our portfolio includes..

Commonwealth risk management policy

Key policy concepts:

• the goal of the policy is to embed risk management as part of the culture of Commonwealth entities where the shared understanding of risk leads to well informed decision making; and

• the policy sets out nine elements which non-corporate Commonwealth entities must comply with in order to establish an appropriate system of risk oversight and management.

Commonwealth risk management policy - 9 elements

1. establishing a risk management policy;

2. establishing a risk management framework;

3. defining responsibility for managing risk;

4. embedding systematic risk management into business processes;

5. developing a positive risk culture;

6. communicating and consulting about risk;

7. understanding and managing shared risk

8. maintaining risk management capability; and

9. reviewing and continuously improving the management of risk.

Risk culture

“Risk culture is the set of shared values and behaviours that characterise how an entity considers risk in its day-to-day activities.

A positive risk culture is one where risk is appropriately identified, communicated and managed throughout the entity.”

Attribute quote to Parl sec….

“The ultimate goal for all organisations is to build risk management into the organisational fabric and culture so that we have better performing and more resilient organisations...”

Attribute quote to AG

Case study: Home Insulation program

Case study: Australian Electoral Commission

Key things to consider

• Get the culture right• Communicate and consult about risk• Understand and manage shared risk

Questions?

Comcover – 1800 651 540 www.finance.gov.au/comcover