The NHFB operates in a complex and challenging environment, involving a wide range of internal and external stakeholders. It is subject to legislation, regulations, standards and guidelines applicable to its status as a non-corporate entity under the PGPA Act and the Public Governance, Performance and Accountability Rule 2014. When assisting the Administrator, the NHFB is subject to Commonwealth, State and Territory legislation and its obligations under the Act and Agreement.
Effective risk management is an important component of NHFB’s governance arrangements and is an integral part of the NHFB’s processes, including strategic planning, business planning and all project and change management processes.
The Commonwealth Risk Management Policy sets out nine elements which are to be incorporated in an appropriate system of risk oversight. These elements are addressed within the NHFB’s Risk Management Policy and Framework, reinforcing our commitment to the effective management of risks and promoting a positive risk culture throughout the organisation.
The NHFB’s approach to managing risk is consistent with the Commonwealth Risk Management Policy, Comcover’s Better Practice Guide: Risk Management and the ISO 31000:2018 Risk Management Guidelines.
The NHFB manages risk to its five strategic objectives and works with the Administrator to assess and monitor broader risks to the successful operation of the Pool.
Following a number of workshops in 2018–19, the NHFB undertook a comprehensive review of all risks, sources, consequences, controls, treatments and risk ratings. As a result the NHFB has reviewed and updated its:
Risk Tolerance Statement;
Risk Management Policy and Framework;
Risk Management Instructions;
Risk Assessment Worksheets; and
Risk Performance Report.
Managing risk is the responsibility of all staff within the NHFB. Effective risk management within the NHFB is dependent on all staff understanding risk and the role they play in managing risk. As such, it is critical that there is adequate emphasis on accountability, leadership, ethical conduct and risk capability throughout the NHFB.
Figure: National Health Funding Body approach to risk management