Risk Management Policy

Proposed amendments to the Risk Management Policy

Public notice of proposed amendments to the Risk Management Policy was approved by Council at its 23 August 2022 meeting.

A copy of the Council Agenda and Minutes relating to this approval are available at www.vincent.wa.gov.au

The substantive changes to the policy are as follows:

• minor amendments to the terminology used, including the addition of a reference to “project risks”, “residual risks (risks with controls/ treatments)” and the role of the Audit Committee in risk management;
• risk consequence criteria has been updated to align with risk management best practice and the City’s context, including the addition of contract / project risks, and the change in terminology of an extreme consequence to a catastrophic consequence (to avoid confusion with extreme risks);
• risk likelihood criteria has been updated to include probability (from 0-100 percent) – this is an alternative means of assessing risk likelihood to the risk frequency method;
• a controls rating table has been added, to identify what are fully effective, adequate and inadequate controls;
• risk classification matrix – likely and major risks are rated as extreme instead of high, and minor and almost certain or catastrophic and unlikely are also rated as high risks;
• terminology changes to the risk management table and inclusion of role of Audit Committee;
• an additional provision to ensure that an appropriate level of expertise is sought in relation to risk classification;
• additional provision regarding implementation of changes to the Policy within the City’s existing risk register;
• in the Risk Classification Matrix at Attachment 2 of the Policy, the proposed amendment from High to Medium risk under the catastrophic column should not proceed and the risk should remain as High; and
• new clause 4 has been included to ensure that the City’s Risk Appetite and Tolerance Statements are reviewed within 3 months of each ordinary Council election.

A tracked copy of the policy, highlighting the proposed amendments, is available for review in the documents section on this page.

Share your Thoughts

Submissions have now closed. The outcome of advertising will be reported to the November Ordinary Council Meeting.

Questions in relation to the proposed amendments can be directed to the Governance Team on 9273 6000 or mail@vincent.wa.gov.au.