A/2.5 Risk management

Policy Owner	Director, Governance and Performance
Approval Date	09/11/2022
Approval Authority	Council
Date of Next Review	01/11/2027

2.5.1 Purpose
2.5.2 Application
2.5.3 Roles and responsibilities
2.5.4 Risk appetite
2.5.5 QUT's Enterprise Risk Management approach
2.5.6 QUT Risk Management Framework
2.5.7 QUT Risk Management Procedure
2.5.8 Business continuity management
2.5.9 Definitions
Related Documents
Modification History

2.5.1 Purpose

This policy details QUT’s approach to risk management. The university is committed to promoting an organisational culture that values effective risk management as a core management capability. QUT recognises that risk management is a critical component of good management practice and an essential element of governance. Effective risk management allows the university to take advantage of opportunities to improve its outcomes by ensuring that any risk taken is based on informed decision-making and realistic analysis.

QUT’s risk management system does not intend to eliminate risk completely, but is designed to ensure:

the university’s risk appetite is set and approved by QUT Council
a common or consistent approach to the management of risk is used across QUT
risk management is integrated into QUT’s planning framework
the management of risk contributes to the quality of performance and continuous improvement of QUT business, its operations and delivery of services
all significant risks to QUT are identified, evaluated, managed and reported in a timely manner to Council through its Risk and Audit Committee.

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2.5.2 Application

This policy applies to all QUT operations as an integral and embedded part of all university activities.

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2.5.3 Roles and responsibilities

Position	Responsibility
Council	sets, monitors and approves the university’s risk appetite statements
Risk and Audit Committee	evaluates the adequacy and effectiveness of the university’s risk management and compliance framework advises Council on QUT’s exposure to, and management of, significant business risks
Director, Governance and Performance	provides risk services (including training, facilitation and advisory) to assist management and staff with identifying, assessing and treating enterprise risks associated with achieving university objectives informs and reports to Risk and Audit Committee regarding emerging trends and changes to risks and risk treatments oversees QUT’s Enterprise Risk Management Framework, including integration of the annual risk assessment process with QUT’s Integrated Planning Framework
Management and staff	identifies and manages risks within their areas of responsibility

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2.5.4 Risk appetite

QUT’s risk appetite is described in a set of qualitative, directional risk appetite statements that are prescribed, monitored and approved by Council as part of the university’s planning processes.

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2.5.5 QUT’s Enterprise Risk Management approach

QUT’s Enterprise Risk Management approach is consistent with the Financial and Performance Management Standard 2019 (Qld) and designed on the principles and process set out in the International and Australian Standard for Risk Management (AS ISO 31000:2018 – Risk management - Guidelines) and comprises:

Policy
Risk Management Framework
Risk Management Procedure
Risk Consequence Matrix
Template for Risk Management Plan and Risk Assessment Worksheet.

The function of risk management is to provide a sound contribution to the achievement of QUT's corporate objectives and to support the strategic directions of divisions, faculties and portfolios. This is demonstrated through the integration and embedding of risk management within the following QUT policies, frameworks and plans:

Governance framework (A/1.1)
University Integrated Planning Framework (A/2.2)
Project Management Framework (QUT staff access only)
Corruption and Fraud Control (B/8.6)
Business Continuity Management Framework (QUT staff access only).

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2.5.6 QUT Risk Management Framework

The QUT Risk Management Framework outlines how risk will be managed and reported and demonstrates alignment of governance and risk management including optimising opportunities and achieving the university’s objectives.

The Framework comprises the following elements:

risk appetite and linkage to strategic priorities
governance accountabilities and responsibilities for risk management in accordance with the 'Three Lines Model'
QUT’s risk management process, including

establishing context, objective and scope of the activity
identifying, analysing and evaluating risks
treating risks
recording and reporting risks
monitoring and reviewing risks.

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2.5.7 QUT Risk Management Procedure

QUT Risk Management Procedure provides a step-by-step guide on the risk assessment process and how to complete the Risk Management Plan and Risk Assessment Worksheet.

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2.5.8 Business continuity management

QUT is committed to business continuity management as an integral component of risk management, to ensure the university is able to resume business after a disruption. Business continuity management enables QUT to resume day-to-day operations as quickly and efficiently as possible, while minimising the impact on people, processes, systems, assets, and reputation.

Further information on how the university ensures the continuity of key business activities is available in the QUT Business Continuity Management Framework (QUT staff access only).

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2.5.9 Definitions

Business Continuity management is any preparation in a systematic manner to resume business after a disruption.

Risk is an event which, if realised, has the potential to affect the achievement of the university’s ability to contribute to its vision, goals, organisational values and objectives.

Risk appetite is the amount of risk QUT is willing to accept in the pursuit of its strategic objectives or strategic priorities for the purpose of maximising value to its stakeholders.

Risk management is the coordination of activities to direct and control QUT with regard to risk, including the establishment of culture, policy, processes and structures.

Risk treatment is the process of modifying risk by implementing a risk strategy.

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Modification History

Date	Sections	Source	Details
12.04.23	A/2.5.3	Director, Governance and Performance	Administrative amendment to transfer policy and add responsibility following Legal and Related Governance Functions CMP, effective 01.02.2023
09.11.22	All	Assurance, Risk and Integrity Services	Periodic review - no change required
07.12.21	All	Assurance, Risk and Integrity Services	Editorial amendments identified by Assurance, Risk and Integrity Services
25.11.19	All	Council	Periodic review - policy revised to reference University’s risk appetite and update QUT’s Enterprise Risk Management approach
03.12.14	All	Council	Periodic review - policy revised to include definitions of additional risk management terms
06.07.14	A/2.5.2	Executive Director, Finance and Resource Planning	Policy revised to reflect the Project Proposal Framework replacing the Business Case Framework
23.06.10	All	Council	Revised policy
13.12.06	All	Council	Revised policy (endorsed by Audit and Risk Management Committee 08.11.06)
04.06.04	A/2.5.1	Executive Director, Finance and Resource Planning	Added statement re QUT's commitment to business continuity management (endorsed by Audit Committee 24.03.04)
12.02.04	A/2.5.1	Deputy Vice-Chancellor (Technology, Information and Learning Support)	Added reference to Project Management Framework and Business Case Framework (endorsed by Vice-Chancellors Advisory Committee 17.07.03)
29.05.02	All	Council	Revised policy (endorsed by Audit Committee 08.05.02)
03.09.97	All	Council	New policy (endorsed by Planning and Resources Committee 27.08.97)

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