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Governance framework

ARPC’s governance framework is based on the Terrorism Insurance Act 2003 (TI Act) and ARPC’s status as a corporate Commonwealth entity for the purposes of the PGPA Act and the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule).

ARPC is established as a body corporate under the TI Act (section 12) and comprises a Chair and between four and six other members (referred to as the Board). Board members are appointed on a part-time basis by the Minister. During the reporting period, the Minister was the Hon. Michael Sukkar MP from 29 May 2019.

The Minister may give written directions in relation to the performance of ARPC’s functions and the exercise of its powers.

The Board is the accountable authority for the purposes of the PGPA Act. As required by the PGPA Act (section 45), ARPC has an audit committee (the Audit and Compliance Committee) which was constituted by four Board members to 4 October 2019 and subsequently three members until 9 June 2020 when the Board re-appointed Robin Low to the Committee.

Under the PGPA Act (section 22), the Finance Minister may make an order (a Government Policy Order) specifying that a policy of the Australian Government is to apply in relation to one or more corporate Commonwealth entities. During the reporting period, there were no General Policy Orders (GPOs) applicable to ARPC.

Under the TI Act, the Board appoints the CEO of ARPC. The CEO manages the affairs of ARPC subject to the strategic directions and policies determined by the Board.

The chart below sets out the organisational framework of ARPC.

Organisational chart Organisational chart

In addition to the statutory framework, ARPC’s corporate governance framework is underpinned by the Board Charter (https://arpc.gov.au/wp-content/blogs.dir/3/files/2020/07/ARPC-Board-Charter.pdf), the Audit and Compliance Committee Charter (https://arpc.gov.au/wp-content/blogs.dir/3/files/2020/07/ARPC-Audit_Compliance-Committee-Charter.pdf) and a suite of policies and procedures in areas such as risk management, financial management, capital management, investment, privacy, delegations, people management, fraud control, conflict of interest, public interest disclosure, security management and business continuity planning.