Risk Management Toolkit

All agencies will encounter risks which have the potential to impact their ability to successfully delivering their objectives. The Government Sector Finance Act 2018 (GSF Act) requires all accountable authorities of government agencies (Secretaries, Chief Executives) to establish and maintain effective systems for risk management, internal control and assurance for their agency.

To increase the likelihood of meeting these objectives efficiently and effectively, it is vital for all agencies to maintain an appropriate risk management function. The risk management approach taken by each agency will vary depending on several factors, such as their size and risk profile. The international standard ISO 31000 provides guidance on how to establish a risk management framework and an approach to designing effective risk management processes.

The aim of this toolkit is to:

• Provide an overview of the ISO principles as they may apply to NSW government agencies
• Help agencies to understand what 'good risk management' looks like, and how this can be achieved
• Provide risk managers with a set of tools and resources to support their work and meet their obligations under the GSF Act and TPP20-08 Internal Audit and Risk Management Policy for the NSW Public Sector (TPP20-08)
• Highlight the importance of risk management and how it supports an agency in achieving objectives

The toolkit has been structured to provide key information, with links to appendices containing additional resources to help support your risk management function.