Risk and Integrity Management

Risk Management

We are committed to the identification and management of all risks so that our business outcomes and effective service delivery to our customers are achieved. Our risk management approach considers regulatory, financial, safety, political, economic environment, and compliance requirements, reputational exposures, and community expectations.

Risk management is integrated into our business planning model which ensures that it is not viewed as a separate activity, but as an inherent part of business processes where everyone is involved and has a responsibility in the management of risk.

Management of risk in our projects is embedded in our project management tools, methodologies and the Enterprise Project Management system. Through risk management workshops at the commencement of projects and quality audits during projects, we ensure that the correct reviews and controls are in place.

Our corporate strategic risk assessment is embedded within the corporate business planning process to enhance our ability to make better decisions, deliver on objectives and improve performance. Corporate strategic risk workshops for all our directorates and the Corporate Executive are held every year. The following table identifies the key Strategic Risk Themes and aligns them against the material aspects and key resources that are inputs to our business creating value.

Risk Theme	Material Aspects	Key Resources
Stakeholder engagement Inability to manage community and customer expectation supported by early and ongoing stakeholder engagement Opportunity to enhance efficiency and delivery outcomes through further collaboration between transport agencies	Good Public Policy Local Communities Open and Transparent Communication
Policy Failure to set internal position and approach to meet evolving government and community expectation on sustainability Failure to maintain momentum in delivering on Aboriginal engagement commitments	Good Public Policy Aboriginal Heritage and Native Title Climate Change and Energy Biodiversity
Asset management and delivery Failure to deliver and demonstrate a robust Strategic Asset Management approach Failure to deliver the transition to in house maintenance and minor capital works delivery model	Road Safety Congestion and Freight Productivity Regional Presence and Development Value for Money
Resource management Inability to fund existing commitments, deliver asset investment program and outcomes Inability to develop and maintain a capable workforce Failure to provide staff safety and support health and wellbeing	Procurement Practices Value for Money Workforce Safety and Health Training and Education Job Creation Diversity and Equal Opportunity
Project delivery Time delay and cost pressures due to supply chain constraints Inability of industry to deliver the project and delivery program in a competitive manner Increasing exposure to contractor and sub-contractor failure Failure to deliver effective network management and performance during project delivery, in an improving economy and to customer expectations	Road Safety Congestion and Freight Productivity Regional Presence and Development Value for Money Legal Compliance Procurement Practices Supplier Social Assessment Compliance with Environmental Legislation
Information technology Inability to adopt and leverage technologies to deliver outcomes Failure to adequately and effectively manage cyber security	Congestion and Freight Productivity Road Building Materials Customer Privacy

Business Continuity Management

All business areas have a Business Continuity Plan in place and function within an overarching corporate business continuity management procedure. Plans ensure that we can respond to, and recover from, any business disruption. Considering the pandemic and impacts on delivery of essential service throughout the year, we continued to ensure services were appropriate and took into consideration the potential of widespread loss of staff due to illness or requirements to self-isolate. We continued to strengthen our ability to mobilise resources to operate from non-traditional locations.

Integrity Framework

Our Integrity Framework represents our commitment to effective fraud and corruption risk management and the promotion of a culture of integrity. The framework consolidates and clarifies policies and processes in relation to fraud and corruption, gifts and benefits, conflict of interest, contact with lobbyists and misconduct.

Features of the framework include biennial fraud and corruption risk workshops within our organisation’s directorates, a comprehensive integrity data analytics detection program and increased transparency through a central fraud and corruption incident register. The framework was developed in a consultative fashion and is aligned with Australian Standard 8001:2021 and is available to all employees.

Fraud and Corruption Prevention

We have detection activities and strategic controls in place to help prevent the misappropriation of funds and inappropriate use of public property, including a comprehensive annual Audit Plan, Integrity Detection Plan, Integrity Detection Improvement Plan and a Fraud and Corruption Risk Management cycle. Our Framework clearly sets out the relevant policies and obligations for all employees regarding preventing, mitigating, and reporting instances of fraud and corruption.