This Part of the report focuses on interagency and statewide risks because these represent critical vulnerabilities for Victoria's public sector. The earlier parts of the report have shown the significant gaps in the current Victorian Government Risk Management Framework and line agencies practices in relation to these risks.
This Part assesses whether our sample of six line agencies are acquitting their responsibilities under the Victorian Government Risk Management Framework (the Framework) and applying practices that mean they are effectively managing the risks they face.
Agencies are largely, but not fully, compliant with the Framework's requirements. However, VAGO is not assured that agencies' practices have matured to the point that they are effectively managing risks.
This Part examines how well the Department of Treasury and Finance (DTF) and the Victorian Managed Insurance Authority (VMIA) have supported agencies and also, how they have informed government about agencies' performance and areas for improvement.
The purpose of the Victorian Government Risk Management Framework (the Framework) is to provide a minimum common risk management approach for public sector agencies.
This Part of the report examines whether the Framework is sound and provides clear and comprehensive instructions to support good risk management practices.
The scale, complexity and likely impacts of the demographic, health, security and climate challenges facing Victoria requires a mature, well-coordinated approach to public sector risk management.
Falling short of achieving this threatens the government's goals for growing the economy in a way that protects and enhances the environment while improving the quality of life of all Victorians. The Victorian Government Risk Management Framework (the Framework) recognises the importance of good risk management:
 Auditor-General |
Audit team Ray Winn—Acting Sector Director Jane Watson—Team Leader Andy Jin—Analyst Dallas Mischkulnig—Engagement Quality Control Reviewer |
Ordered to be printed
VICTORIAN GOVERNMENT PRINTER October 2013
PP No 271, Session 2010–13
In accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Human Services, the Department of Justice and Victoria Police.
The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Response provided by:
The audit examined how well the three audited agencies managed their telecommunications usage and expenditure.
Inconsistent expenditure controls, coupled with inadequate attention to enforcing personal usage policies, reducing waste from redundant services, and leveraging best value from whole‑of‑government agreements indicate significant untapped savings potential exists.