Managing in a Changeable Operating Environment
This section:
- describes the Ministry's risk management framework
- identifies the specific risks faced by the Ministry to achieving its six outcomes
- discusses how these risks will be managed.
The operating environment of any Ministry is subject to change, and the diversity and breadth of our work makes this a particularly important consideration. We manage the risks of our changing environment by assessing our progress, prioritising and reprioritising our work, monitoring known and emerging risks, and taking corrective action where necessary. This is achieved through processes embedded at every level of the organisation, from risk reporting to the Chief Executive, to the performance agreements of operational staff.
The Operating Review Process Helps The Ministry Manage Its Risk
The Ministry's quarterly Operating Review provides our strategic leadership team with a regular assessment of organisational performance, and assurance on compliance with statutory and internal policy requirements. This helps the Ministry to manage its key risks as it works towards its intended outcomes, including highlighting areas for further management action.
Managers And Staff Have A Critical Role In Risk Management...
Managers across the Ministry are expected to anticipate and innovatively respond to change. As goals and objectives are identified, so, too, are any potential impediments to their achievement, along with the most effective treatment of these. Managers and staff use their knowledge and experience to deal with risks through the Ministry's business planning processes. The Ministry's structure and systems promote risk management by staff at all levels.
...Along With Strong Management Systems
The majority of the Ministry's risks are managed through strong management systems, for example, knowledge-sharing, performance management, and operating reviews.
These systems build on the strategy and planning frameworks and provide managers and staff with tools to better identify and manage their risks. They are also part of our organisation's learning system, enabling people to build their knowledge and experience.
The Ministry Faces Risks To Achieving Its Outcomes...
Risks that could threaten the achievement of the Ministry's strategic objectives are:
- lack of clarity on the roles and responsibilities of the Ministry and relevant Crown entities for the delivery of the Government's economic development and regulatory regimes
- inappropriate advice in areas that could lead to systemic failure
- shortage of capability in the employment market to meet the needs of the Ministry.
...And Manages These Risks At A Strategic Level
Risks at the strategic level are identified, in part, through analysis of international literature on what drives productivity improvement, as well as more domestically-focused research and information on the main issues and challenges facing the New Zealand economy. These risks are then managed through quality policy design that takes account of the results of the research.
The strategic and business planning processes continue to be strengthened to address these risks by improved direction-setting, accountabilities, capability-building, knowledge management, debrief and review, and communication.
Risks To Operations And Organisational Capability...
A range of operational risks could compromise the Ministry's ability to deliver on its outcomes. These include:
- risks arising from our internal management systems
- risks with our public-facing systems, including failure of technology
- individuals acting in a fraudulent or criminal manner
- lack of probity of individuals in meeting their responsibilities as public servants
- failure to prepare for instances outside of the control of the Ministry (for example, natural disasters).
...Are Managed Through Operational Planning And Project Management
At an operational level, the Ministry identifies and manages risk through project planning, operating review and review of projects, audits and risk profiling, quality management principles, business continuity planning, and control over suppliers.
A Risk Management and Assurance Committee, which includes external members to provide independent perspectives, advises the Chief Executive on risk and assurance arrangements. We also make use of other approaches where appropriate – for example, an IT Governance Committee supports decision-making on IT capability development.
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