Step 7: Ongoing mentoring 24 Abbreviations 27 Definitions 27 Leadership 29 Strategy and Planning 35 Financial Management 41 Innovation, Quality and Improvement 53 People 64 Client and Market Focus 77 Introduction This resource is one of a series produced by National Disability Services Victoria to strengthen management capacity in the disability sector. It was developed as a collaborative effort between National Disability Services Victoria, the Victorian Managed Insurance Authority and the Department of Services. The resource was developed in the context of the Victorian Disability Plan 2001–2012, which laid the foundation for significant changes for the disability sector, with a shift to empower people living with a disability to make their own choices and direct their future supports. Community Service Organisations delivering disability services are responding to an increasingly competitive environment by focusing on the customer, improving the quality of services, responding to individual needs and developing more sophisticated governance and management practices. Effective Risk Management is an important part of this strategic response and will contribute to long-term sustainability. Why Risk Management Risk Management is the activities undertaken by an organisation to ensure that it understands the risks that it faces and makes informed decisions in managing these risks. An organisation which undertakes a strong set of risk control activities will: reduce the likelihood and/or consequences of potential adverse events maximise the results of positive events provide decision-makers with information to assess risks in their business operations
This model comes with a number of practical step-by-step resources that have been developed to support implementation of the ‘Basic’ standard in CSOs requiring less sophisticated risk controls. These are not intended to be comprehensive, but focus on areas of greatest need as identified by NDS members. These resources can be found on the : Leadership – Governance Structure and Charter Strategy and Planning – Strategic Plan Innovations, Quality and Improvement – Client Services Charter People – WHS Management System Audit People – WHS Home Checklist Client and Market Focus – Marketing Plan Risk Management for Support Workers (forthcoming 2012). A wide range of resources and learning opportunities are available to assist community service organisations to undertake effective risk management: DHHS Funded Agency Channel Other resources available to organisations include training, risk consulting partners, mentoring with like organisations, industry bodies and insurance companies, financial institutions etc. Organisations must still recognise and implement external requirement such as: Due diligence requirements DHS Standards AS/NZ ISO 31000-2009 Victorian State Disability Plan 2002–2012 Model Work Health and Safety (WHS) Act How to use the Model The model is designed around a process, which is detailed below: Use the Quick Self-Assessment to understand your organisation’s context Complete self-assessment Checklists to identify your risk controls gaps Complete Key Element Summary Table for overview of risk management level Formulate goals to address gaps in risk management Develop a Risk Matrix for your organisation Use the risk matrix to evaluate and prioritise key risks
Cash and Cash Flow Management Basic – Intermediate – Advanced – Accept – Action Status – Innovation, Quality & Improvement Policies and Procedures Basic – Intermediate – Advanced – Accept – Action Status – Service Delivery Basic – Intermediate – Advanced – Accept – Action Status – Quality – Intermediate – Advanced – Accept – Action Status – Information Management Basic – Intermediate – Advanced – Accept – Action Status – Management – Intermediate – Advanced – Accept – Action Status –
Effective Board oversight of investment policy with regular meetings Investment management expertise Transaction review Use of performance indicators Regular position monitoring, review and reporting Wage increases/costs increase Robust budgeting system Effective cost control policies and procedures Human resource policies and procedures Quickly adaptable and responsive pricing process Fraud Segregation of duties Delegations process Internal and external audit plan Management control Fraud control plan and whistle-blowing procedures Investigation and termination policy (human resource) Government legislation/direction affects financial position Maintain close relationships with government Be proactive/innovative for early response Economic climate Robust budgeting system Effective monitoring system Investment policy and procedure Diversified investment strategy Regular market reviews and reports Capital guaranteed investments Investment committee oversight and approvals Compliance Financial Management Act 1994 Audit Act 1994 Financial Management Regulations 2004 Standards for Disability Services in Victoria 2007 Pricing regulations National Competition Policy DHS Funding and Service Agreement Fundraising Appeals Act 1998 Resources developed by NDS as part of the Strategic Business and Financial Planning Project