Chapter Four - Outcome Performance > Outcome Five: Strategic Policy > page 2 of 14
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Outcome Five: Strategic Policy

Mitigation of Key Risks

The Defence Portfolio Budget Statements 2004-05 identified four key risks that could adversely affect the performance of the Strategic Policy outcome. The first of these risks was the prospect of a deterioration in Australia's strategic circumstances, both generally and with respect to specific potential crises. To mitigate this risk, regular reviews of the strategic environment were undertaken during 2004-05 to ensure Defence capabilities were able to respond to possible threats and contingencies and the effectiveness of Defence operations and international engagement was monitored.

A second risk was identified as the emergence of new and more immediate threats from terrorism and the proliferation of weapons of mass destruction. Defence supported enhanced national counter-terrorism efforts, through reviews of Australia's counter terrorism capabilities and increased cooperation with other countries in our region. Defence also participated in counter-proliferation efforts, mainly through strong involvement in the United States-initiated Proliferation Security Initiative, which now has the support of over 60 nations.

The third risk identified was our ability to manage core priorities at times of increased operational tempo, such as during the war against terrorism or ADF activities in Iraq. This concern was addressed through a variety of strategies, including the continuous monitoring of workloads and reviewing of priorities. This enabled Defence to retain its focus on core priorities, including maintaining capacity to respond to contingencies and the development of new military concepts and priorities for future military capabilities.

The fourth risk identified was the management of projects funded under the Defence Cooperation Program in regional countries where factors external to Defence impacted on the achievement of objectives. This risk was mitigated by regular and close consultation with regional countries over our mutual objectives for cooperative projects and on progress towards achieving them, as well as ensuring appropriate guidance and supervision for the management and implementation of projects.

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