Key risks
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What actions were taken to manage the risks over the past year?
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What further actions will be taken to manage the risks in the coming year?
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For emerging/ongoing risks provide a Risk Rating (low, medium, high, very high)
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Increased cost of doing business in PNG due to a decrease in its macroeconomic stability. PNG Government fails to progressively increase the level of recurrent budget funding for maintenance on national priority assets.
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Adherence to the Aid Partnership priority to narrow the scope of work and broaden the involvement of stakeholders (e.g. provincial actors).
Clear communication from the Australian High Commission (AHC) to relevant stakeholders and media about Australia’s support for key impact projects.
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Identify and introduce benchmarks and enter into negotiation with the PNG Government on incentives for achieving these benchmarks.
AHC will explore options for transitional support through long term maintenance contracts, including potential PNG Government co-contributions.
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High
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The Pacific Leadership and Governance Precinct does not deliver expected results due to a diminishment of commitment of University of PNG stakeholders.
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Continued support to PNG Government partners to build and maintain political and bureaucratic commitment through engagement by the Joint Oversight Group, University of PNG Project Steering Committee and through the Australian Foreign Minister, Australian High Commissioner and Minister Counsellors and embedded technical advisers within institutions.
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Manage expectations through regular updates to the Foreign Minister’s office.
Minimise the impact of the recent security developments (i.e. UPNG led student protests, termination of academic year) on the Precinct program through clear and continuous professional engagement with the University of PNG’s senior management.
The gender team plays a lead role in mainstreaming and advocacy of gender throughout the program. Implementation of gender equity and social inclusion policies ensures that these issues are constantly addressed in the program.
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High
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Perception by either government (Australia or PNG) that they are failing to deliver on the Joint Understanding (JU) commitments.
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Clear communication with different stakeholders about the extent of Australia’s support for the JU.
Dedicated JU oversight mechanisms at bilateral, DFAT and project levels.
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Manage expectations through regular updates to stakeholders.
Senior post oversight and engagement with Chief Secretary to address bottlenecks and escalation where needed.
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High
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*New Colombo Plan (NCP) visit results in a consular case.
*Under the NCP policy DFAT is not the responsible organisation for student welfare and safety. Due to the in-PNG security situation and the NCP’s visibility and links to the Australian Government, the risk to Australia’s reputation is considered major, should a consular case occur.
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Regular update meetings held with Counsellor, Education on all NCP activities.
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Develop a handbook on what students can expect in PNG to assist them with their preparations.
In close consultation with the consular team and Canberra, ensure all necessary administrative requirements are in place such as arrival times in PNG, Smart Traveller registrations, and travel insurance.
Ensure the public diplomacy team at post have a media plan.
The education team develops an NCP management plan for post.
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High
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An increase in the incidence of fraud and/or corruption impacts the aid program.
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Fraud management training conducted at the AHC for all key stakeholders as part of the AHC’s strengthening of service delivery linkages amongst partner sectors.
Programs maintain stringent controls over financial management and expenditure, including trust and imprest accounts, with a zero tolerance for fraud or corruption.
AHC maintained an aid program fraud risk register with controls which are revised and updated on a regular basis.
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Managing contractors/service providers report on performance and expenditure monthly/ quarterly.
To enable a greater depth of assurance across the operation of individual partners and programs in PNG, the AHC established an audit services panel in December 2015. The panel will soon be able to conduct sector audits on risk, fraud, financial management, governance structures and in other areas as required by the sector teams.
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Medium
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The TB program is not successful in addressing the increase of TB cases in Western Province and the National Capital District, due to an inadequate amount of financial and HR resources.
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Through policy dialogue with the PNG Government, it was supported to mobilise additional third party funding for the TB response and encouraged further to allocate sufficient funding in its budget.
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Continue to raise the funding shortage issue for TB at PNG Government ministerial level at all opportunities.
Facilitate discussions with PNG's central public health laboratory to resolve bottlenecks to certification.
Regular dialogue with Australian Government MPs on the extent of TB and efforts to manage it.
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Medium
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Security environment in PNG continues to present serious concerns for staff safety.
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Regular security training (such as high threat defensive training) is undertaken at post and during pre-posting.
Email and SMS security alerts are provided to all staff and families alerting to new risks and advising of risk mitigation strategies.
Security escorts guards are stationed at A-based residential compounds and the AHC.
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Ongoing monitoring of the security risk environment to ensure the identification and implementation of appropriate risk controls.
Regular communication with staff to ensure the security environment is understood and policies and procedures are adhered to.
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Medium
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