‘RISKY BUSINESS’
An overview of the Commonwealth
Risk Management Policy
Mr Robert Antich
Assistant 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
1600+
Relationship
Management
Current Active Claims
Claims
Management
Comcover
Financial
Management
$80 Billion
$70 Million
Annual Claims
Risk
Management
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.
2.
3.
4.
5.
6.
7.
8.
9.
establishing a risk management policy;
establishing a risk management framework;
defining responsibility for managing risk;
embedding systematic risk management into business processes;
developing a positive risk culture;
communicating and consulting about risk;
understanding and managing shared risk
maintaining risk management capability; and
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