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Statement of Intent 1 July 2008 - 30 June 2011

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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.

 

  • Each project undergoes comprehensive risk analysis and utilises independent risk consultants to identify project-specific risks at the outset of the acquisition process.
  • Undertaking effective monitoring and reporting through the project's duration, including audits by Audit New Zealand and the Ministry's Evaluation Division.
  • Maintaining and enhancing quality and capability of our acquisition project people, through policies which ensure high professional standards, integrity and objectivity and require peer reviews and quality assurance regimes.
  • Ensuring each project has appropriate support in terms of suitably qualified staff and satisfactory support arrangements for staff posted overseas.

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.

 

  • High-level engagement to facilitate more efficient and timely security checks.
  • Reprioritisation of existing resources to ensure funding for enhanced employment opportunities while exploring opportunities for increased baseline allocation for enhanced employment arrangements.
  • Active recruitment programme.
  • Maintaining and enhancing quality and capability of our people through policies which ensure high professional standards, integrity and objectivity and require peer reviews and quality assurance regimes.

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.

 

  • Strengthen management and organisational processes within the Ministry and with the New Zealand Defence Force, whilst continuing to retain the statutory independence of the Ministry's role vis-à-vis the New Zealand Defence Force.
  • Provide the necessary corporate and operational support to the Ministry's acquisition and/or policy areas.

The Ministry's management of risk is supported by:

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