Strategic risks
A risk-based approach underpins the delivery of
all government services and the implementation of
policy initiatives. The Clean Energy Regulator will
achieve this through the design and implementation
of a Risk Management Framework that is proactive,
systematic, transparent and structured in its approach
to managing risk.
Communication and consultation with external
and internal stakeholders should take place during
all stages of the risk management process and
accordingly, plans should be developed at an early
stage. All organisational decisions are to incorporate
and reflect an objective assessment of the risks and
opportunities that might arise in relation to each
option put forward as part of the analysis.
The agency has identified six strategic risks which
align with the objectives of the Clean Energy
Regulator (discussed in detail in the Strategic
Objective section):
- Regulated entities do not meet their obligations.
- The integrity of the financial instruments and
client data is not protected.
- The agency's services are not supported by a
culture of integrity and performance.
- Client engagement does not build confidence in
the market.
- The Regulator's decisions are not sufficiently
robust to withstand external scrutiny.
- The agency does not establish effective
corporate policies, infrastructure and
governance arrangements.
Measures of success
The Clean Energy Regulator will be successful if
there is demonstrated evidence that Australia is
effectively transitioning to a low carbon economy
and that the mechanisms administered by the Clean
Energy Regulator have contributed to this transition.
The Clean Energy Regulator's performance and
planning frameworks have a strong emphasis on
reporting in a structured and valuable manner,
detailing the progress being made in the delivery of
its objectives.
The reporting approach, which includes the monthly
production of an organisational performance report,
generates information that is valuable for both internal
and external performance management needs. The
data and performance metrics are reported to the
Minister on a quarterly basis, demonstrating the steps
being taken to meet the Clean Energy Regulator's
responsibilities and realise its vision.
Planned outcomes for 2015
- Stakeholders and clients regard the Clean Energy
Regulator as an important institution relevant to
economic performance.
- The Clean Energy Regulator has transitioned from
a mechanistic and prescriptive approach to one
that is outcomes focused and intelligence-led.
- The Clean Energy Regulator's operations are
streamlined, reducing compliance costs and
controlling risk.
- The carbon market is operating effectively,
based on:
- a market price for carbon that is trusted and
enables investment
- published information that enables clients to
understand how to operate in the market while
secondary impacts are managed, and
- a working link that enables international activity.