Statement of Intent 1 July 2008 - 30 June 2011
Managing in a changeable operating environment
Analysing and managing risks and opportunities
The Ministry will continue to review the operating environment, the risks that must be managed, and the opportunities available. In doing so, the Ministry will need to identify and monitor the strategic risks and opportunities that are likely to be faced both within individual divisions and as an organisation. The Ministry will ensure that the Government is fully advised with regard to those risks and opportunities.
In the Acquisition Division, individual acquisition projects undergo comprehensive risk analysis, mitigation, and management. The Acquisition Division also maintains certification to ISO 9001 for quality management processes and outcomes.
The Capability Management Framework has provided a direction for establishing mechanisms for defining the capabilities required of the New Zealand Defence Force. It also provides a means for identifying the risks and opportunities prior to any equipment procurement.
Ministry of Defence's risks
The Ministry has identified the following key strategic risks:
| Risk | Management strategy |
|---|---|
Failure of acquisition projects A failure in one or more of the Ministry's acquisition projects, whether in terms of timing, budget (almost invariably very large), deliverables or any other key aspect of a project, will have a significant impact on the Ministry – including in terms of its reputation and credibility. In addition, the Ministry's acquisition projects frequently require assessment and purchase of high-cost equipment, which is still under development. |
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Failure to recruit and/or retain staff The Ministry is one of the smaller government departments, which means that the Ministry's staff are critical to the success of the organisation. Loss of one staff member may have a serious impact on not just major projects, but the full range of all the Ministry's outputs. Recruitment, as well as retention, is increasingly being put at risk as a result of heightened security checks undertaken on prospective employees, which can take up to six months to complete. The Ministry's ongoing ability to attract and retain suitably qualified staff, including staff based offshore, and maintain investment in their development, is at risk if we cannot maintain our competitiveness and attractiveness as an employer. |
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Not maintaining credibility and reputation Any damage to the credibility and reputation of the Ministry would seriously impair its effectiveness, particularly in terms of its role in supporting New Zealand's defence and security objectives. Such damage could occur as a result of any failure in the Ministry's outputs, including a failure to adequately respond, react, or envisage changing defence and/or security circumstances or to adequately fulfil our remit to provide robust, independent civilian policy advice. |
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The Ministry's management of risk is supported by:
- evaluation reports produced by the Evaluation Division on the Ministry's acquisition activities
- oversight of the policy and acquisition activities by the Executive Capability Board and Office of the Chief Executives (both having joint Ministry and New Zealand Defence Force representation)
- consistent Ministerial and other agency feedback on our activities.

