Submissions - The Australian Risk Policy Institute (ARPI)
Resources Acts Program Queensland
The Queensland Government has called for feedback on a framework discussion paper: Modernising Queensland Resources Acts Program.
Call for submissions: https://www.getinvolved.qld.gov.au/gi/consultation/1754/view.html
Due: 17 January 2014
ARPI Web Publication: after 17 January 2014
ARPI endorses the proposed framework and commends the Queensland Government for embarking on this initiative.
ARPI encourages the Queensland Government to make express reference to the identification and reduction of vulnerability and the identification and reduction of systemic risk in the objectives of the new Act. In this context, we suggest that:
· vulnerability, in relation to an entity, is a condition where entity is exposed to a potential risk because of inadequate protection, preparation, resourcing, or leadership. Vulnerability is a potentiality – risk is a probability.;
· systemic risk, include actions that may damage a market. A systemic risk is complex and has multiple owners who must work collaboratively together to manage the risk lest it materialise into an unmanageable live issue or indeed a wicked problem
Examples: A company is vulnerable during a start-up phase, if staff and managers are still learning the ropes. A company may also be vulnerable if it acts with inadequate resourcing or poor financial or business planning, or if responsible managers leave unexpectedly and replacements are not immediately available or need additional support and training.
Note: Systemic risk commonly arises when a company breaches market/community trust through a failure to deal with vulnerabilities.
This proposal is, at one level, a technical drafting exercise designed to improve the
The draft framework appears appropriate. When Queensland comes to settling the precise form of the objectives of the Act, ARPI considers that it would be appropriate to make a clear statement about identifying the vulnerabilities sought to be reduced by the scheme and the need for identifying and implementing appropriate approaches to treat systemic risk.
Note that this submission reflects input from other ARPI members.