Managing in a Changeable Operating Environment
Strategic risk management
Strategic decision making involves balancing strategic risks. The Ministry defines strategic risk as:
The current and prospective risk to fisheries outcomes, the Ministry’s reputation, and the Ministry’s operating capability, which arise from strategic choices, improper implementation of strategic choices, or changes to the environment.
A dedicated risk management resource has been established within the Evaluation and Risk Team. The Evaluation and Risk team is updating the Ministry strategic risk policy to incorporate the new international risk management standard, ISO31000. The strategic risk policy will be part of the performance management framework, which will integrate strategic risk management with Ministry performance and planning.
The effectiveness of the strategic risk policy is overseen by the Risk Assurance Advisory Group (RAAG), an internal governance committee. The RAAG monitors and provides advice to the Chief Executive on the Ministry’s risk management framework, policies, and procedures.
A number of global factors – climate change, trade barriers, and the lack of an integrated approach to managing ocean resources – have an impact on New Zealand. In addition there is the clear pressure on the economy as we seek to manage through what has been the most severe world-wide recession in the past fifty years.
Delivering Government services efficiently and effectively, and ensuring they represent value for money, is critical to the achievement of Government priorities to grow the New Zealand economy and deliver greater prosperity, security and opportunity for all New Zealanders.
Minimising Government costs will mean a reduced impact on the commercial fishing sector, creating the potential for the sector to improve its earnings, employment prospects, and its value to New Zealand. A Ministry delivering effective and efficient services, and with decisions being made on the best information available, will also promote value for the amateur sector.
Fisheries are a significant export earner for New Zealand and it is important that the resources continue to be managed in a sustainable manner. Sustainability remains a key issue, with markets and environmental groups increasingly demanding proof that fisheries are being managed sustainably and that catches are not having a negative effect on future viability.
Increases in population in the developing world and changes in eating habits in the developed world mean that fish is becoming a more valuable food source. The desire to harvest increasing quantities needs to be balanced against the need to set and enforce limits to ensure sustainability. New Zealand’s fisheries are well managed and we need to ensure that this highly valued commodity is not overfished or subject to illegal fishing activity. This may require innovative approaches from the sector.
Climate change has the potential to pose challenges for fisheries management and fishing activity. Changes in coastal waters may also have an effect on marine aquaculture.
There is increasing pressure for transparency in fisheries management decision making, but also increasing complexity around the legal framework in which fisheries management is required to operate.
The Ministry already interacts with its stakeholder groups and also with a number of Government agencies who have an involvement in fisheries-related issues. These interactions are a key source of information and feedback on fisheries issues and become key inputs into the planning process.