Fraud and Risk Management
ACT Site Office
Helen McKenna (Chief Risk Officer and Branch Manager Business Assurance) June 2014
Page 122 of 292
Session Outline
- What is Risk/Risk Management?
- Why is it important?
- The Agency’s approach to Risk Management
- What is your role?
- Fraud in the Commonwealth
- The Agency’s approach to Fraud Control
- What is your role?
What is Risk?
“Risk is the effect of uncertainty on objectives”
AS/NZS ISO31000:2009
Page 124 of 292
Risk Management
Risk Management is the process of identifying, analysing and evaluating risks with a view to ensuring the effective management of potential opportunities while reducing or avoiding adverse effects.
Page 125 of 292
Why is it important?
- To minimise the negative impact of risks upon achievement of objectives; and
- To maximise the Agency’s ability to realise potential opportunities
Prevention is better than the cure.
Risk management is a proactive attempt to identify potential risks and incidents before they happen in order to develop prevention and response strategies.
Risk Management: Benefits
- Increase the likelihood of the Agency achieving strategic and business objectives;
- Encourage a high standard of accountability at all levels of the organisation;
- Support more effective decision making through better understanding of risk exposures;
- Create an environment that enables the Agency to deliver timely services and meet performance objectives in an efficient and cost effective manner;
- Safeguard the Agency’s assets — human, property and reputation; and
- Meet compliance and governance requirements.