Risk Management Framework

The �Ӱ�ֱ�� Council is the governing body and has statutory responsibility, among other things, for overseeing and monitoring the assessment and management of risk.

A sound approach to managing risk is essential to the ongoing sustainability and success of the �Ӱ�ֱ��.

Demonstrable risk management helps to assure stakeholders that �Ӱ�ֱ�� governance and management understand the risks of operating a university, that adequate steps have been taken to minimise and mitigate risks, and that the �Ӱ�ֱ�� has in place systems to operate commercially, flexibly and responsibly.

The �Ӱ�ֱ��’s approach to risk management aligns with the Standard ISO 31000:2018 Risk Management – Guidelines.

�ճ��Ծ��ٲ�’s Risk Management Framework connects the �Ӱ�ֱ��’s governance structure and the management structure so that the two work together to provide a joint commitment, set of expectations, and organisational and personal accountabilities and responsibilities. The Framework defines risk operating model, appetite, responsibilities, methodology, and monitoring and reporting obligations for the �Ӱ�ֱ�� of Adelaide and all its operations and entities.

Risk management framework

Risk Management Policy

The affirms the �Ӱ�ֱ��’s commitment to building a risk culture that encourages deliberate and proactive risk management in a manner and at intervals commensurate with the �Ӱ�ֱ��’s strategies.

The Policy is to be read in conjunction with the �Ӱ�ֱ��’s Risk Management Framework and other resources, directions and guides approved and published from time to time by the �Ӱ�ֱ��’s governing body and by �Ӱ�ֱ�� management.
Risk Appetite
Risk appetite refers to the amount of risk the �Ӱ�ֱ�� is willing to accept or retain in order to achieve its objectives. The �Ӱ�ֱ��’s risk appetite is applicable at strategic, tactical and functional level.

At the �Ӱ�ֱ��, risk appetite is described as conservative, balanced or entrepreneurial.

Conservative

The �Ӱ�ֱ�� is reluctant to accept risk exposures or potential losses. Risk taking should proceed with caution and the �Ӱ�ֱ�� expects a higher level of confidence around the management of associated risks.

The �Ӱ�ֱ�� may be reluctant to take risks for the expected returns.

Balanced

The �Ӱ�ֱ�� is willing to accept some risks to pursue opportunities and potential benefits commensurate with the risk taking. The �Ӱ�ֱ�� will take well justified risks in return for associated benefits.

The �Ӱ�ֱ�� expects some uncertainties in the undertaking for the expected returns.

Entrepreneurial

The �Ӱ�ֱ�� expects a level of uncertainty and is willing to accept risks associated with the opportunity being pursued, where the opportunity is worth pursuing or too good to miss.

The Council sets the tone for risk taking in the �Ӱ�ֱ��’s Risk Appetite Statement. The document describes the application of risk appetite, and behaviours the �Ӱ�ֱ�� has zero appetite for.

It is important to consider all applicable risk categories during decision making. Willingness to pursue risk is contextual and therefore the risk appetite associated with a specific risk category should not be viewed in isolation.

Risk appetite table
�Ӱ�ֱ�� Risk Matrix

The �Ӱ�ֱ�� Risk Matrix outlines the categories of likelihood and consequence and the 5 x 5 risk rating matrix. The Matrix also identifies the management action required for risks rated extreme, high, medium and low risk.

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Risk Management Framework

Risk Management Policy

Risk Appetite

�Ӱ�ֱ�� Risk Matrix