Risk Management Policy : Schedule A
9 June 2005
Date Last Amendment:
Nature of Amendment:
Consequential amendments arising from a restructure
of Central Administration/VC's office and the creation of
new senior executive positions replacing the EDA and Registrar
Date Last Reviewed:
Vice-President (Strategic Finance and Resources)
Procedures for Planning Significant New
(i) outlines the protocol for identifying commercial and significant
initiatives. The ultimate purpose is to establish an efficient pathway,
which ensures that major proposals with higher risk implications
are directed to Council, and that other proposals are attended to
within existing University policy, risk management and decision-making
(ii) incorporates procedures for developing proposals for significant
new commercial initiatives.
2 Review Protocol
When is an initiative commercial, and what is a significant investment
of University assets?
The following review protocol:
- provides guidelines for determining whether initiatives are
commercial ventures or proposals to invest significant University
assets, and therefore to be presented to Council for approval;
- allows for certain types of initiatives to be approved in accordance
with existing Council-approved policies and plans, as nominated.
2.1 Step 1
Is the initiative a significant commercial venture or initiative?
Ventures or initiatives which are:
- commercial (i.e. related to business, as established by Criterion
- significant (i.e. important, notable, material and of consequence,
as established by Criterion B) should prima
facie be referred to Council for approval.
Where capital is to be laid out on any work and there is a risk of
profit or loss, it is a commercial venture or initiative.
The commercial venture or initiative is significant
if any one of the following apply.
(i) regarding the University’s reputation
If, in the Vice-Chancellor’s assessment, the potential risk
to the University’s reputation is significant
(ii) regarding University assets (other than cash)
If the University is required to make available staff and/or equipment
and/or infrastructure and/or intellectual property, to a notional
value of greater than $250,000 per annum
(iii) regarding cash investment
If the University is required to make a commitment of greater than
$250,000 in total, across the expected duration of the commercial
venture or initiative
(iv) regarding potential liability
If the University is potentially liable to underwrite an initiative
at a cost greater than $250,000
(v) regarding ownership
If the University ownership interest is 20% or more )
(vi) regarding annual revenue
If the annual net revenue is expected to exceed $250,000 per annum
(vii) regarding offshore initiatives
If the offshore initiative is not within the scope of the Policy on
the Development of Offshore Programs
(viii) regarding other imperatives
If, in the Vice-Chancellor’s judgement there are important internal
or external factors which should be brought to the attention of Council.
is 20% or more, the entity is deemed to be an "associate"
according to Australian accounting standards
2.2 Step 2
Is the initiative within the scope of an existing requirement for
Council approval or an existing Council-approved policy or plan that
provides appropriate assessment and decision-making processes?
If, in the judgement of the Vice-Chancellor, a Deputy or Pro Vice-Chancellor,
a Vice-President, or an Executive Dean, the initiative falls within
the scope of an existing Council-approved policy or plan, the proposal
will be developed and approved in accordance with the relevant policy
and procedures. "Nominated policies and plans " include
- Policy on Course and Topic Development, Management and Approval
- Policy on the Development of Offshore Programs
- Policy on Centres
- Policy on Controlled Entities
- Policy on Delegations of Authority to Enter into Contracts
- Intellectual Property Policy
- Policy on Investments
- Policy on Financial Delegations
- Flinders Strategic Priorities and Future Directions MkIII 2006-2010
2.3 Step 3
Is the initiative likely to recur regularly? Does it warrant the
development of a Council approved policy that establishes requirements
for assessment and decision-making, including delegated authority?
3. Approval process
3.1 Proposals which are deemed to meet the criteria for "significant"
and "commercial", as set out in Step 1 of the Review Protocol,
will be referred to Council for approval in accordance with the
3.1.1 The Vice-Chancellor will receive the proposal and taking advice
as required, will consider whether a suitable case has been made.
3.1.2 On deciding that a suitable case has been made, the Vice-Chancellor
will refer the proposal to Resources Committee for endorsement and
to Council for approval, giving the reasons for the University’s
establishment or support of the venture, its primary areas of activity,
and a risk assessment.
3.2 If, in the judgement of the Vice-Chancellor, a Deputy or Pro
Vice-Chancellor, a Vice-President, or an Executive Dean, the initiative
falls within the scope of the Council-approved policies and plans
specified in Step 2 of the Review Protocol, decision-making will
continue to occur as required by the relevant policy.
3.3 The criteria in Step 1 will be reviewed after a 12 month period
to determine their effectiveness with regard to identifying significant
3.4 Council approval may be achieved either through the Executive
Committee or through a scheduled meeting of Council, subject to
further advice from the Working Party on Commercial Ventures, having
regard to the type of initiative, risk profile, stage of development
and external time lines.
4. Procedures for Developing Proposals for Significant New
4.1 Proposals for initiatives which are deemed to meet the criteria
for "significant" and "commercial", as set out
in Step 1 of the Review Protocol and which do not fall within the
scope of a Council-approved policy and plan specified in Step 2
of the Review Protocol, will be developed in accordance with the
Procedures for Developing Proposals for Significant New Commercial
Initiatives at Attachment 1.
PROCEDURES FOR DEVELOPING PROPOSALS FOR SIGNIFICANT NEW
COMMERCIAL INITIATIVES (as identified in accordance with
Step 1, Criterion A and B of the Review Protocol at Schedule A of
the Risk Management Policy)
The flow chart (Attachment 2) illustrates
the development and approval process for significant new commercial
1. Phase 1: Initial Concept Proposal
1.1 Proponents of any significant new commercial initiative are
required to prepare an initial concept proposal that will include:
1.1.1 a brief outline of what the proposal is about;
1.1.2 benefits to Flinders;
1.1.3 how the proposal fits in with the University's strategic
directions, goals and objectives;
1.1.4 significant areas of risk associated with the proposal and
an indication of how they will be managed; and
1.1.5 key proponents of the proposal and key Flinders staff involved.
1.2 The initial concept proposal will be referred to the appropriate
Deputy Vice-Chancellor, Executive Dean or Cost Centre Head for consideration,
prior to moving to the second phase of proposal development, a detailed
consideration of the issues and associated risks.
2. Phase 2: Detailed consideration of issues and risk assessment
2.1 The initial concept proposal, if supported, will undergo further
detailed development to identify and consider all relevant issues.
2.2 General advice and guidance about the development of proposals
may be sought from the Faculty General Manager and the Vice-President
(Strategic Finance and Resources). Frequently
Asked Questions to be used as a guide to development of proposals
are available on the website for this policy.
2.3 For each relevant issue, any significant risk considerations
will be identified and given a risk probability rating (Low, Medium,
High), with specific advice on how the risks will be managed.
2.4 The more detailed proposal, incorporating consideration of the
key issues and risk assessment will be referred to the appropriate
Deputy or Pro Vice-Chancellor, Vice-President, or Executive Dean
2.5 The proposal, if supported, will be referred to the Vice-President
(Strategic Finance and Resources) and/ or the appropriate Deputy
Vice-Chancellor for consultation and advice as to whether the proposal
will require development of an initial business plan.
3. Phase 3: Business plan
3.1 The extent of detailed analysis that is required in the business
plan will depend on the nature of the proposal and the outcome of
the phase two consideration of issues and risk assessment.
3.2 The business plan will be referred to the appropriate Deputy
or Pro Vice-Chancellor, Vice-President, or Executive Dean for consideration
and endorsement, prior to being submitted to the Vice-Chancellor,
who will take advice as required.