Statement of Intent
Risk Approach
Managing in a Changeable Operating Environment
MAF manages risk in every part of the organisation. We are recognised world leaders in biosecurity-related risk management and assurance. Our success in managing these risks has a significant impact on the health and vitality of New Zealand’s economy, people and environment. To ensure we can manage these operational risks, we need to be aware of the organisational or strategic risks that may prevent us achieving our stated purpose and outcomes.
MAF uses a risk management process based on the Australia–New Zealand Standard 4360:2004. This model has been chosen, and at times customised, to suit our operational needs. Risks are incorporated in business-as-usual reporting and in specific risk registers, although MAF has chosen not to implement specific software for risk management.
In 2007, our Assurance and Risk group undertook a fraud and security risk assessment that included visits to nearly every MAF workplace and incorporated over 400 responses to an online survey. We intend to repeat similar risk assessments for other “Top Five” risks noted in MAF’s risk profile. Unsurprisingly, our existing “Top Five” organisation-wide risks have remained unchanged this year. This risk profile will be reviewed in 2008/09 and will integrate our strategic foresight work. The risks of our individual business groups will be reviewed during strategic planning sessions.
Table 3: “Top Five” organisational risks
THE RISKS: THAT WE MIGHT NOT… |
KEY MITIGATION STRATEGIES |
Have the right people – right skills We are operating in a tight labour market. We have a high proportion of long-service staff members combined with a high turnover of the workforce. We must manage our skill blend and our management of knowledge (as opposed to information). |
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Be engaging with stakeholders We rely on co-operation and compliance of industry and inter-departmental stakeholders. Internally, we may not gain buy-in to our business initiatives, or fail to engage with the right people at the right time. |
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Provide leadership Internal and external leadership failures present a significant obstacle to achieving our objectives. Effective sector and industry leadership is critical as is ensuring we promote realistic and effective solutions and policies. Internally, we need to ensure we share a vision and have robust debates that support a clear unified direction. |
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Give robust policy advice Our policy advice may produce unexpected or unwanted outcomes. Our policy advice may not be robust, leading to poor decision-making by the Government or inappropriate positions taken by farmers. If policy advice is not robust it may result in market access restrictions for primary produce. |
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Deliver (credibility) MAF has a leadership role for various aspects of the agricultural, food and forestry sectors. Failing to deliver at an outcome or operational level could be disastrous for the department. MAF must ensure it is always aware of progress against objectives and monitors the effectiveness of remedial action when required. |
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Assurance and Risk Committee
The purpose of the Assurance and Risk Committee is to advise the Director-General about MAF’s viability as an organisation to pursue government policy and public good objectives. The committee focuses on:
• the adequacy of the Ministry’s risk management and internal controls;
• compliance with legal, ethical and regulatory requirements;
• co-ordination of the internal and external audit effort;
• the adequacy of the Ministry’s response to audit and risk management findings;
• the robustness of financial and non-financial reporting systems and external reporting required by the Public Finance Act 1989;
• the appropriateness of MAF’s governance framework and processes.
The committee is an independent advisory board and has no executive powers, but has access to all parts of the Ministry and the power to call before it any staff member to provide advice or answer questions. MAF’s Director of Assurance and Risk is a non-voting member of the committee. The committee reports to the Director-General on any matter that it sees fit to do so.
Committee Members
- WILLIAM FALCONER (chair), professional company director and former chief executive of Petrocorp.
- PETER HUGHES, career public servant, currently chief executive of the Ministry of Social Development.
- RICK BETTLE, professional director and former chief executive of Wrightson and the Alliance Group.
Contact for Enquiries
Strategy and Performance Group
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526, Wellington
Tel: +64 4 894 0100
Fax: +64 4 894 0738
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