Risk management culture and capability (in progress)

Risk management is a critical element of good corporate governance. Effective risk management enables agencies to improve their decision making by allowing them to make informed decisions about risks. It is now widely accepted that organisational culture plays a key role in implementing a robust risk management framework. Neglecting the ‘soft’ side of risk management – which includes fostering a culture where risks are proactively communicated and risk management is integrated into daily activities - can prevent institutions managing the risks that threaten their success. This audit will examine how effectively NSW Government agencies are building risk management capabilities and embedding a sound risk culture throughout their organisation.  To do this the audit will examine whether:

  • Agencies can demonstrate that senior management has provided a mandate for, and is committed to, risk management
  • Information about risk is communicated effectively throughout the agencies
  • Agencies are building risk management capabilities.

The audit will examine risk management in NSW Treasury Corporation (TCorp), NSW Police Force, Ministry of Health, and the Fair Trading function within the Department of Finance, Services and Innovation. The Treasury will also be included as an auditee as the agency in charge of the NSW Government risk management framework.

Ausgrid unsolicited proposal

In 2016, the NSW Government held a competitive tender process for the partial lease of a 50.4 per cent interest in Ausgrid, however, the Commonwealth Government blocked the NSW Government from accepting a bid from Chinese backed consortia on national security grounds. On 23 September 2016,  the NSW Government announced it had received an unsolicited proposal to acquire the 50.4 per cent interest in Ausgrid. On 20 October 2016, the NSW Government announced it had accepted the unsolicited proposal, delivering $16.2 billion gross (estimated to be around $6 billion net) to the NSW Government.

This performance audit will  examine how the 'uniqueness' criteria required to accept an unsolicited proposal was satisfied, how value for money was established, how probity was assured, and the governance arrangements required by relevant guidelines.


Governance of state financial assets and liabilities

Description pending.


FMT implementation

Description pending.