Managing in a changeable 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, arising from strategic choices, improper implementation of strategic choices, or changes to the environment.
To improve strategic and operational planning the Ministry is implementing an organisation strategic and operational risk management framework, based on ANZS 4360 and identified best practice for linking the strategic and operational risks to the strategic planning process.
The Ministry has established a Risk Assurance Advisory Group (RAAG) as part of its governance arrangements.
The RAAG will monitor and provide advice to the Chief Executive on the Ministry’s risk management framework, policies, and procedures.
In 2008/09 a series of workshops identified strategic risks for the Ministry. These included risks arising from the Ministry’s strategic planning assumptions, a lack of common/shared understanding of fisheries outcomes, and the organisation’s ability to respond to change. Ownership of the strategic risks has been assigned to a member of the Strategic Leadership Team, who will lead a process to develop actions to mitigate the risks. The status of the risks and related mitigation actions will be reported to, and monitored by, the RAAG.
The operational risk management framework is being piloted in four diverse Ministry operating units. Once finalised, the operational risk framework will be rolled out across the Ministry. The status of operational risks, and related mitigation actions, will also be reported to the RAAG.