It is mandated by the Standing Directions 2018 that fall under the Act (Directions), specifically Direction 3.7.1 – Risk Management Framework and Processes.
The Framework describes the minimum risk management requirements agencies are required to meet to demonstrate that they are managing risk effectively, including inter‑agency and state significant risk.
Detailed guidance, information and risk management support is available from the Victorian Managed Insurance Authority.
The new Framework provides greater clarity as to the roles of managers and audit committees when it comes to risk management functions. Departments and agencies are now asked to consider and define their risk appetite within their risk management frameworks, and to demonstrate a positive risk culture based on the guidelines.
The new Framework commences from 1 July 2021 and is designated: Victorian Government Risk Management Framework - August 2020 (to take effect from 1 July 2021).
The revised Framework has been made available to departments and agencies to allow them to make preparations for the new Framework in advance of it coming into formal effect from 1 July 2021.
For the 2020-2021 Financial Year agencies are required to comply with the current Framework designated: March 2015 (Updated July 2018).
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