www.spb.sa.gov.

au

Risk Management Policy

Version 2.0 (Revised)

Date Issued January 2009
Review Date January 2011
Principal Contact State Procurement Board
Telephone 8226 5001
Purpose

This policy sets out the requirements for public authorities to adopt appropriate risk management
practices when procuring goods and services, consistent with across-government risk
management policy and objectives.

General Principles

The Government of South Australia Risk Management Policy Statement outlines the requirements
of public authorities relating to risk management practices to be implemented and integrated into
all activities.

A key objective of this policy is a common risk management language and framework to ensure
uniform risk management processes are undertaken across government.

It is expected that public authorities will develop or have in place, local policies and procedures
addressing risk management, in accordance with the Australian Standard AS/NZS 4360:2004.

Policy Statement

The State Procurement Board (the Board) requires risk management practices to be utilised when
undertaking procurement.

In addition to compliance with the Government of South Australia Risk Management Policy
Statement, the principal officer shall ensure that:

• in undertaking procurement, agency procurement practitioners and/or representatives

take appropriate action in relation to risk management during the planning and purchase
of goods and services; and
• public authority procurement policies and procedures are consistent with the State
Procurement Board’s requirements on risk management in procurement.

Policy Scope
This policy applies to all procurement by public authorities as defined in the State Procurement
Act 2004.

Application
Risk management is a key element when undertaking procurement. Depending on the nature of
the procurement, public authorities must observe risk management practices that involve:

• identifying, assessing and understanding components of risk;

• monitoring risks; and
• using various risk management tools.

Risk Management Policy Page 2 of 3 Issue Date: January 2009

Version 2.0 (Revised) Review Date: January 2011
Exclusions

Nil

Compliance

State Procurement Act 2004

Related Policy and Guidelines

State Procurement Board Risk Management Guideline

State Procurement Board Procurement Reporting Policy and Guideline
State Procurement Board Acquisition Planning Guideline
Australian Risk Management Standard AS/NZS 4360:2004
Government of South Australia Risk Management Policy Statement

Responsibilities
Principal officers are responsible for ensuring this policy is implemented and monitored within
their respective public authority.

The Board is responsible for ensuring this policy is promulgated, evaluated for its effectiveness
across government and reviewed.

Review Date
This policy will be reviewed 24 months from the date of approval.

Risk Management Policy Page 3 of 3 Issue Date: January 2009

Version 2.0 (Revised) Review Date: January 2011