TPP15-03 Internal Audit and Risk Management Policy for the NSW Public Sector issued by NSW Treasury (“the Treasury Policy”) establishes whole of Government standards to support effective corporate governance and risk management practices across the NSW public sector.
To support each public health organisation in meeting their risk management objectives, NSW Health has enacted legislation Risk Management - Enterprise-Wide Risk Management Policy and Framework – NSW Health PD2015_043 which defines the risk management framework required to be in place across each health District.
SESLHD’s Enterprise Risk Management Strategy 2018 - 2021 (“the Strategy”) is an key element of the required framework and one of a number of plans prepared by the District to cover its wide-ranging activities.
The purpose of Enterprise Risk Management (ERM) and the Strategy is to:
- Document SESLHD’s approach to risk management and overall risk management framework;
- Help SESLHD maintain an internal control environment of the highest level appropriate to the size, business mix and complexity of its operations;
- Help ensure compliance to various external regulatory regimes, and;
- Focus on integrating risk management into organisation culture, creating continual improvement and best practice.
SESLHD’s ERM approach is based on the following three key principles. Risk management is:
- the responsibility of all Executives, Managers and employees;
- integrated into all business activities and systems, and;
- established to comply with the NSW Health Policy and Framework and ISO 31000:2018 (Risk Management – Principles and Guidelines).
Several elements make up the solid risk foundation and framework for SESLHD:
- Clinical Risk Governance
- Enterprise Risk Management Strategy
- Enterprise Risk Management Procedure
- Risk Management Plan and Calendar of Activities
- Position Descriptions which include responsibility and accountability for risk
- Catered risk management training
- Risk forums established at each Facility
- Regular reporting to the Executive Council, Ministry of Health, Audit and Risk Committee and Board.
The organisation’s risk appetite or tolerance for risk will vary with its Strategy as well as evolving conditions within the industry. SESLHD’s approach to risk management is to actively identify, analyse and prioritise risks against the appetite and tolerances and to give the most attention to those with a high priority rating.