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Defence Estate Quality Management System (DEQMS) Davis Langdon Certification Services

Defence & EIG Risk Management Function Policies

Joint Directive on the Management of Risk in Defence

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:

  • Defence’s approach to risk management. Risk management is to be integrated into all planning, approval, review and implementation processes at all levels, to ensure that risk is one of the major considerations in decision-making;
  • When a risk assessment must be undertaken – namely when an initiative is proposed or there is a major change to the way functions or activities are undertaken;
  • Risks that must be brought to the attention of the Secretary and CDF;
  • Key risk terms that Defence is to use to help facilitate clear risk discussions across Groups and Services; and
  • Responsibilities for the implementation of the Joint Directive of 30/2015, including specific responsibilities for supervisors, project managers and contract managers.


E&IG Risk Management Framework and Process

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:

  • E&IG has access to accurate and timely information and trustworthy and current industry advice, when considering risk;
  • E&IG is able to balance risk with operational need;
  • Risk management activities are integrated into daily work practices with minimal disruption to core duties; and
  • The requirements of the Work, Health and Safety Act (2011) are met within the RMF.

Risk and Smart Buyer

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.