Risk Management Policy

PURPOSE

This policy details Leaders Institute's (LI) approaches to risk management over corporate and academic activities of the Institute.

SCOPE

Whole Institute

PRINCIPLES

LI utilises the Risk Management Framework developed under Standards Australia as: AS ISO 31000:2018. The Institute's principles of risk management are to:

1. align with LI's vision, mission, and values

2. incorporate risk management into the strategic and operational planning and quality processes at all levels within the Institute;

3. have clear accountability, ownership, and governance incorporated into the functioning of Governing Board and its subcommittees, Executive Management Team, Academic Board and its subcommittees;

4. systematically, transparently, and consistently communicate and apply risk management processes;

5. ensure that appropriate monitoring, review, and reporting processes are in place;

6. ensure that risk management is the responsibility of all staff and all areas of the Institute;

7. ensure that opportunities and risks are identified and proactively assessed and monitored by staff on an ongoing basis;

8. ensure all staff members take responsible care of Institute property. This includes reporting all incidents, complaints, losses, and near misses involving Institute property, and incidents involving visitors and students, including but not limited to, injuries or potential hazards;

9. implement the Risk Management Plan in accordance with organisational responsibilities.

DEFINITIONS

Risk: the effect (positive or negative) of uncertainty on objectives. Risk is considered with reference to possible consequences and likelihood of occurrence in both internal and external environments.

Risk Management: a tool used to support the achievement of strategic and operational goals of the company. The Risk Management Framework provides a standardised approach to assessing risk at any level of the organisation .

RISK MANAGEMENT PLAN

LI’s Risk Management Plan provides the formal mechanisms to monitor and review risks that may occur due to the breakdown of internal controls and corporate governance. The Risk Management Plan is reviewed every three years.

SUCCESSION PLANNING

The Institute is cognisant of the risk of loss of key staff and the need for it to be mitigated through succession planning. The President will work with the Finance and Budget Committee, Risk Management Committee, and Academic Board to develop a succession plan for Governing Board’s consideration and approval.

PROCEDURES

Risk ratings are determined through a combination of the consequences for the Institute if the risk is not treated, and the likelihood of this happening. The following Risk Assessment Matrix is utilised:

Risk management strategy detailed in the Risk Management Plan is implemented through the following processes:

• Establish Context;

• Identify;

• Analyse;

• Evaluate;

• Treat;

• Communicate and Consult;

• Monitor and Review.

The Risk Management Strategy relevant to each identified risk are recorded in the Risk Management Plan. Risk management processes are also recorded appropriately. Assumptions, methods, data sources, analyses, results, and reasons for decision are also recorded.