Document ID: chunk:federal_register_of_legislation:F2013L01183:reg:5
Version: federal_register_of_legislation:F2013L01183
Segment Type: reg
Provision Reference: reg 5
Character Range: 3433–4957

5                         Establishment, maintenance and content of risk management framework
(1)          The Board must, as soon as reasonably practicable after the commencement of these Rules, establish a risk management framework, and must have such a framework in place at all times.
(2)          The risk management framework must provide a reasonable assurance that the Agency's risks are managed prudently and soundly.
(3)          The risk management framework is to deal with the systems, structures, processes and people within the Agency that identify, assess, mitigate and monitor all internal and external sources of risk that could have a material impact on the Agency's operations, funding and financial sustainability.
(4)          The risk management framework must include:
(a)          a written risk management strategy prepared in accordance with section 8; and
(b)          policies and procedures to identify, assess, monitor, report on and mitigate all material risks, whether financial or not, that are likely to be faced by the Agency; and
(c)          clearly defined managerial responsibilities and controls in relation to risk; and
(d)          a review process to ensure that the risk management framework is effective in identifying, measuring, evaluating, monitoring, reporting, and controlling or mitigating, material risks.
Note: The risk management framework is not necessarily a written document, although it will include various written documents such as the risk management strategy.