Managing risk

The Ministry recognises that there is a range of risks that may impact on our business and the broader transport sector. The Ministry’s risk management frameworks allow us to identify and manage risks on an ongoing basis. The oversight of risks is the responsibility of the Ministry Leadership Team, which receives monthly reports on any work programme risks. 

We regularly review our progress on the work programme through the weekly meeting of the Ministry Leadership Team, the Transport Managers’ Group and the Minister of Transport. To meet the priorities of the government we have also reorganised the way we work to allow for a more flexible workforce. This means we can shift resources to the areas of priority relatively easily. 

Risks are also mitigated through an annual programme to address risk and performance issues, six-monthly risk workshops and regular scanning of the external operating environment (ie oil and carbon prices, revenue collection and economic indicators). 

This year the Ministry established a new Performance and Risk Advisory Group to provide advice primarily on our organisational development and performance. The Advisory Group is made up of external members who are able to bring a fresh view to our organisational development and any risks associated with that and our performance. 

We have an internal legal team who provide advice on the identification and management of legal risks. This is supported by the ComplyWith software-based compliance monitoring, which helps the Ministry to meet its legislative obligations. The system requires the responsible staff member to confirm that we do comply with all legislative responsibilities. 

The Ministry has also built solid relationships with the transport Crown entities, with particular emphasis on our biggest entity, the NZ Transport Agency. Regular meetings to facilitate effective governance and accountability allow us to ensure that they too are focused on the government’s priorities. 

The Ministry has in place emergency management plans and a business continuity plan which can be activated in the event of a building, local, regional or national emergency. We take part yearly in emergency exercises as part of our coordination role of providing strategic advice to the sector during an emergency. The Ministry plays a lead role in the maintenance of the Transport National Emergency Response Plan. This plan provides a framework for transport agencies to participate in a whole-of-government response to an emergency. 

The Ministry also facilitates a common understanding of transport security risks across the transport agencies to ensure effective coordination and mitigation of those risks.

We will be doing further work on refining our Disaster Recovery preparedness. Updating contingency plans will ensure that we are in a position to continue to deliver a service, even when subjected to emergency pressures brought on by natural, infrastructure or medical events. This may require expenditure on strengthening our back-up equipment.

Managing our assets

Each year the Ministry prepares a capital programme to ensure that we have the infrastructure required to fulfil our functions. The budget set aside for the capital programme for the next three years is set out below. 

Proposed capital programme

 

 

2010/11
$000 

 2011/12
$000

 2010/13
$000

 Property, plant and equipment       

 600

375

375 

 Intangible assets - software

150

150 

150 

 Total

750 

525 

525

The Ministry operates from three offices, with the main site and most of the staff located in Wellington. All of our premises are leased, so the majority of the assets are leasehold improvements, fixtures and fittings, and computer equipment. We also own the infrastructure at Milford Sound/Piopiotahi Aerodrome. The forecast value of the Ministry’s asset base as at 30 June 2010 is $3.9 million.

The Ministry has no plans to incur significant leasehold improvement expenditure in the next four years. All of our offices are well equipped and the environment is modern. Ongoing minor equipment replacement and purchases will continue to ensure that we meet business and health and safety needs.

We will also ensure that our computers and equipment continue to be fit for purpose and are replaced according to our policies. This includes the equipment required for the operation of the network, desktop capability and mobile equipment.

We have replaced a number of our operating systems over the past three years, resulting in a more secure, robust computing environment. Over the next three years we intend to upgrade technology and systems and make improvements to major applications.


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