Approach to risk
The ARENA Board is ultimately responsible for the operation of ARENA and its management of risk. Effective risk management is an essential part of performance management. While the Board and ARENA executive are ultimately accountable for risk management, it is also the responsibility of all ARENA workers to manage risk.
In 2017, ARENA undertook a comprehensive review of its approach to risk, and adopted an enhanced risk management framework that embeds risk management practices and mitigation measures into all processes and operations.
ARENA’s Risk Report, which includes a Risk Appetite Statement, Risk Dashboard and Risk Register, is reviewed regularly by management, the Board and the RAC.
ARENA classifies its risks in three categories:
- Safety, compliance and mandate
- People, environment and operations
- Innovation, technology and projects.
Overall ARENA has assessed 15 strategic risks, of which one remains outside the Board’s risk appetite and for which additional treatments have been put in place to manage and reduce risk.
ARENA will consider climate risk in future annual reports based on Climate Compass, a climate risk management framework for Commonwealth agencies.
ARENA’s RAC provides independent assurance and advice to the Board on ARENA’s risk management.