The Secretary of Defence, Mr Dennis Richardson and the Chief of the Defence Force, Air Chief Marshall Mark Binskin, AC have signed a Joint Directive on the Management of Risk in Defence (30/2015) .
The Joint Directive sets out:
A key aspect of the E&IG Business Management Process is how ongoing risks are managed. An E&IG Risk Management Framework (RMF) and Risk Management Process(RMP) have been developed to establish a clear line of accountability, a clear decision making process and an ability to effectively treat risks.Quick links to these processes are as follow:
In particular the RMF and RMP ensure that:
The First Principles Review (FPR) concluded that the One Defence organisation needed to become a Smart Buyer. Central to Smart Buyer is a new decision-making framework which enables Capability Managers (CM) and project teams to identify key project risks and use that risk analysis to develop tailored Project Execution Strategies (PES).
These execution strategies form a central part of the Gate 0 business case and be revalidated at subsequent approval points. A Smart Buyer collaborates with industry, engages early and throughout the Capability Life Cycle (CLC). It also uses industry best practice tools and techniques to execute projects throughout the CLC, including through sustainment, in a way that strikes the optimum balance of performance, time and cost.