Oversight, Compliance and Control
The board is accountable for Plan International Australia’s systems of internal control and for the management of risk. The Finance & Audit Committee is responsible for monitoring and reporting to the board on the effectiveness of these systems.
In its governance role, the Plan International Australia Board assumes ultimate responsibility to ensure that adequate risk management procedures are adopted to protect the assets and undertaking of the organisation. Underpinning this policy, the board adopts an active approach to risk management on the basis that Plan International is a risk-aware organisation, rather than a risk-averse one.
The board recognises that prudent risk management does not require that all risks be identified and eliminated, but that procedures are in place to identify material risks arising out of the day to day operation of Plan International Australia and, where the likelihood and/or consequences of such a risk occurring demand that steps be taken to minimise, eliminate or transfer that risk, that such steps are indeed taken.
Finance and Audit Committee
The role and responsibilities of the Financial Audit Committee (FAC) as defined in the FAC Terms of Reference in regards to risk management are:
Risk Assessment and Management
In the context of a risk assessment framework and with a particular focus on child protection across Plan International, the Committee shall review and make recommendations as to the organisation’s risk assessment practices and procedures and risk management systems in respect to all aspects of its operations, legal, operational, regulatory, ethical, environmental etc.
The organisation is responsible for ensuring it has its own policies for identifying, monitoring and managing significant risks.
National Executive Director (NED)
The NED is responsible to the board to ensure that a Risk Management plan is developed and implemented for risk management procedures to become part of the day-to-day operation of Plan International in its dealings.
The NED shall report through the Finance & Audit Committee to the Board on the development and continuing implementation, monitoring and modification of the Risk Management plan.
The NED is responsible to review Plan International’s Global Risk Register on a quarterly basis and report through the Legal and Risk team to the Financial Audit Committee and the Program Evaluation and Audit Committee of the International Board on any significant risk that could impact on the global organisation.
Senior Management Team
Management is responsible for establishing and implementing the risk management system to identify, control and manage strategic, technical, operational and other material risks.
Management of risk
Risk management is the culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects to be within the Plan International environment. The aim of this policy is not to eliminate risk, rather to manage the risks involved in all of Plan International’s activities to maximise opportunities and minimise adversity.
The risk profile of the organisation can be categorised as follows:
- Hazard (Political, Environmental, Regulatory)
- Approach & method for managing risk
Plan International will maintain procedures to provide the organisation with a systematic view of the risks faced in the course of our activities. Where appropriate these procedures will be consistent with the Standards Australia risk management standard, AS/NZS 4360:1999 – Risk Management.
Risks are required to be managed systematically with the adoption of a rigorous, comprehensive, transparent process for identifying, prioritising and treating all risks. Risk management involves establishing an appropriate infrastructure and needs to become part of the organisations culture. As such it requires input from all levels of the organisation with direction from the board and senior management.