Risk oversight and management
Creating a positive risk culture
We are committed to developing and promoting a culture of active risk management supported by transparent and robust governance oversight. The Board’s risk appetite statement supports effective risk management, decision-making processes and anticipation of risk. This assists us to meet our obligations under section 16 of the Public Governance, Performance and Accountability Act 2013 and the Commonwealth Risk Management Policy.
Our risk environment
We perform an integral role in the Australian aviation industry and operate in an inherently complex environment. Our external risk considerations include our regulatory environment, technological advancements, changes to the domestic and international economic environment, and our role in the broader commercial aviation industry.
While risk management does not prevent adverse events from occurring, it assists us in proactively identifying and treating risk across our business and operating environment. This helps to minimise vulnerabilities and allows us to pursue new opportunities in a safe manner.
Risks identified in the 2017–18 enterprise risk management plan cover:
- strategic risks, such as customer value, geopolitical uncertainties, technological disruption, safety and security;
- transitional risks, including delivery of the Civil-Military Air Traffic System (CMATS) and Airservices Investment Program, and on-going management of Per and Poly Alkyl substances contamination; and
- business risks, including ANS and ARFFS service delivery, as well as compliance with Work Health and Safety (WHS), environment and financial obligations.
Our approach to managing risk
In order to provide safe, secure, efficient and environmentally responsible services, our staff may, at times, have to make difficult decisions. We expect our staff to proactively manage risk and support them in making informed, evidence-based decisions that adhere to policy and operational guidelines.
A key aspect of our risk management framework is to identify and effectively manage our enterprise risks and key controls. Airservices Enterprise Risk Management framework comprises three layers of risk management activities:
- Enterprise level—risks which may impact Airservices achieving its objectives
- Group level—risks which may impact business groups achieving their objectives
- Organisational processes—application of risk assessment and management techniques in organisational systems and processes
Each enterprise risk is assigned to an Executive General Manager for management. Broader oversight across these risks is undertaken by the Chief Executive Officer (CEO), Executive, Board Audit and Risk Committee and the Board. Managing these risks effectively assists our senior leaders in making strategic decisions on major threats and opportunities in an open and transparent way.
Airservices Enterprise Risk Management Framework