articulate the ANAO’s Risk Management Policy; provide an overview of the risk management processes adopted by the ANAO; define the key attributes and objectives for the ANAO’s risk culture; describe roles and responsibilities for managing risk; and. Organisations must monitor not only risks but also the effectiveness and adequacy of existing controls, risk treatment Reporting as required under the Risk Framework. Further information on the steps involved in evaluating identified risks is available through the risk analysis tools available from CMG. Ensure the practice objectives and the internal and external context for risk management are current and accurate. Risks in relation to audit are governed by audit standards that are incorporated into the ANAO Audit Manual. Source ISO 31000. outline the process for reporting on risk and ongoing monitoring and review. The Framework is a high-level public document and is disclosed in the Annual Report and on our website. The ANAO work program outlines potential and in-progress work across financial statement and performance audit. The ANAO has a clearly defined governance framework that supports and provides structure to the management of the Office and its resources. The Management Team will ensure that the results of its reviews are provided to Council for update of the Council’s risk profile as appropriate. Risk culture refers to the set of shared attitudes, values and behaviours that characterise how an entity considers risk in its day to day activities. The ANAO Auditing Standards and the ANAO Independence Policy require staff and contractors engaged in audits to comply with the relevant provisions of the Accounting Professional & Ethics Standard Board, APES 110 Code of Ethics for Professional Accountants relating to independence. This ensures alignment between CCAR material risks and storylines and the actual risk profile and loss experience of the institution. Key roles and responsibilities for the management of risk are shown in the table below. To address these … All staff with risk management roles and responsibilities are provided with the necessary skills to undertake these responsibilities. The ANAO’s commitment to high ethical and professional standards underpins the quality of its work. Risk treatment is a risk modification process. Following a risk analysis the risk rating determines the risk owners and required reporting obligations. Parliament questioning the ANAO’s ability to execute its mandate. Activities that may result in a change to the existing assessment will be escalated in line with the Risk Framework. Damage to our reputation is the single most important consequence should our risk management fail in a significant way, as it goes to the core of the way we conduct our business and our integrity as a professional audit organisation. To provide for the maintenance of an effective risk management program the ANAO is committed to ensuring: The ANAO accepts that, on occasions, even with sound risk management practices, things may go wrong. The risk management objectives have been achieved, or are progressing satisfactorily. A consequence can be certain or uncertain and can have positive or negative, direct or indirect effects on objectives. In the first instance staff should raise any suggestions relating to new or identified ANAO risks with their executive director and CMG, who will liaise with the appropriate risk owner as necessary. Tax risk is the risk that companies may be paying or accounting for an incorrect amount of tax (including both income and indirect taxes), or that the tax positions a company adopts are out of step with the tax risk appetite that the directors have authorised or believe is prudent. The risk appetite and tolerance set at the strategic level determine what level of management intervention is required. Risk is owned by a hierarchy of risk owners aligned to the urgency defined in the risk rating. That is driving the freeway of life and only looking up and ahead every 15-20 minutes. The Auditor-General and EBOM have a low risk appetite. The framework is only effective if the context remains relevant to the firm, as this sets the scope for risk management. You can view samples of our professional work here. Our Risk Management Framework (Framework) explains our core principles and the types of risk that we face. The Best Practices Framework should be refined into a Management of Risk Framework for providing guidance to departments on how to address the organizational / strategy implication and the risk management process implications of any initiative they would undertake. Board refined the Group’s Enterprise Risk Management Policy and Framework during the year and this is set out on page 3 of this review. Risks rated as ‘High’ or above and strategic category risks are monitored by EBOM and the Audit Committee. The Risk Framework requires that risk assessments be undertaken in all key activities including when: All risk assessments and risk ratings will be documented consistently across all groups using the format on Audit Central. Considering risk during the ANAO corporate and group business planning processes allows us to set realistic delivery timelines for strategies/activities or to choose to remove a strategy/activity if the associated risks are deemed to be at an unacceptable level. Determine whether a sound and effective approach has been followed in establishing business continuity planning arrangements, including whether business continuity and disaster recovery plans have been periodically updated and tested. 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