RISK MANAGEMENT
The ARC recognises the potential impact of a number of its risks could be significant. In light of the ARC’s role as a key funding agency, the agency is vigilant in the management of financial risks as well as having a low tolerance for risks that damage the ARC’s reputation or impact on the safety of ARC staff and stakeholders.
The ARC has four strategic risks which are managed through its Risk Management Framework. The risks are:
Strategic Risk 1 —The ARC is perceived to not be funding the best research
Strategic Risk 2 —Outcomes from ERA and EI do not meet the needs of the Government and/or stakeholders Strategic Risk 3 —The ARC is not engaging effectively with its stakeholders (including across Government and with the research sector)
FIGURE 3: Risk at the ARC
escalated and reported on as required
everyone’s responsibility
Strategic Risk 4 —The ARC fails to comply with its legislative requirements.
At the ARC, risk is...
The ARC’s Risk Management Framework (the framework) is a comprehensive package designed in accordance with section 16 of the PGPA Act, for the management and oversight of the ARC’s risks and controls. The framework has been developed to comply with the nine elements outlined in the Commonwealth Risk Management Policy and meets the needs of the ARC giving consideration to the unique context of the entity’s functions. The framework is underpinned by the ARC Risk Management Policy (the policy) and Risk Management Plan and Toolkit (the plan). These documents define the ARC’s approach to risk management, the organisation's appetite and tolerance to risk plus key accountabilities and responsibilities for managing risk across the agency. The plan details the process for effective management of risk. The policy and plan together support all other elements of the framework including the strategic risk register, operational risk register and the fraud risk register. The ARC also has an established risk champions network to ensure that risk management responsibility is widely communicated, embedded in our culture and that risks are carefully considered and proactively managed in all areas of business.
openly discussed and shared across the entity
regularly reviewed and improved upon
an integral part of planning, performance and decision-making
The ARC will continue to develop and improve processes and systems to record and analyse emerging and realised risks. It will also continue to build capacity, awareness and expertise in risk management through formal risk management training and systems training to assist with communication and interaction of stakeholders with risk management, activities and outcomes across the agency.
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Australian Research Council / CORPORATE PLAN 2020–21
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