National Disability Insurance Scheme—Risk Management Rules 2013 (Cth)

National Disability Insurance Scheme—Risk Management Rules 2013

I, WILLIAM RICHARD SHORTEN, Minister for Financial Services and Superannuation, determine these rules under section 125B of the National Disability Insurance Scheme Act 2013.

Dated 25 June 2013.

WILLIAM RICHARD SHORTEN Minister for Financial Services and Superannuation

Contents

Part 1 Preliminary 1 Name of instrument 2 Commencement 3 Interpretation Part 2 General responsibilities of the Board 4 General responsibilities of the Board Part 3 Risk management framework and risk management strategy 5 Establishment, maintenance and content of risk management framework 6 Kinds of material risks 7 Reviews of risk management framework 8 Risk management strategy Part 4 Risk management function 9 Risk management function Part 5 Risk management declaration 10 Preparation and content of risk management declaration 11 Qualifications to risk management declaration

Part 1 Preliminary

1 Name of instrument These Rules are the National Disability Insurance Scheme—Risk Management Rules 2013.

2 Commencement These Rules commence on the later of: (a) the day after they are registered; and (b) 1 July 2013.

3 Interpretation In these Rules: Act means the National Disability Insurance Scheme Act 2013. Agency—see section 9 of the Act. Board—see section 9 of the Act. Board member—see section 9 of the Act. Ministerial Council—see section 9 of the Act. NDIS means the National Disability Insurance Scheme (as defined in section 9 of the Act).

Part 2 General responsibilities of the Board

4 General responsibilities of the Board (1) The Board must ensure that: (a) it prepares a written risk management strategy as soon as reasonably practicable after the commencement of these Rules; and (b) the Agency has a sound risk management culture; and (c) the members of the Agency's senior management take the steps necessary to monitor and manage all material risks that are likely to be faced by the Agency, consistent with the risk management strategy; and (d) the Agency's operational structure is such that it facilitates effective risk management; and (e) the Agency develops policies and processes for making decisions affected by risk that are consistent with the risk management strategy; and (f) the Agency dedicates sufficient resources to risk management; and (g) the Agency recognises the uncertainties involved in the measurement of risk and understands the limitations and uncertainties relating to the output of models used to measure components of risk; and (h) the Agency establishes, and has in place at all times, appropriate controls in relation to risk that are consistent with the Agency's risk profile and are understood by, and regularly communicated to, relevant staff of the Agency. (2) The Board must also ensure that the scheme actuary is involved in decisions made by the Agency and the Board in relation to risk, to the extent that that involvement is appropriate and consistent with the scheme actuary's duties and the National Disability Insurance Scheme—Rules for the Scheme Actuary 2013.