Section 6: Program risks

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A framework to proactively identify and manage risks

Risk is a natural part of developing and implementing reform. Given the breadth and complexity of the APS Reform agenda, the APSC uses a mature approach to risk management that accounts for the service’s risk culture, risk appetite, and risk management processes. Considered risks include threats to achieving the primary objectives of reform and threats to individual initiative outcomes. The APSC works with reform-leading agencies and implementation teams to manage risk through 4 main components: understanding the context in which the reform is being implemented, considering the agency’s existing appetite for risk, identifying and assessing potential risks, and developing appropriate strategies to control or treat those risks.

The APSC supports systematic mitigation of risk

The APSC uses a range of complementary approaches to ensure comprehensive consideration of existing and emerging risks. These include centrally coordinated identification of strategic risks, quarterly reporting to measure progress and risks, and regular risk reporting to the APS Reform Program Board and to internal governance mechanisms. This centralised approach to risk mitigation is driving a consistent approach across a distributed delivery model of reform, and ensures that key governance bodies, including the Program Board, have whole-of-program oversight of risks.

The APSC is successfully managing strategic risks

Building on the assessment of overarching risk themes in the previous Annual Progress Report, over the past year the APSC has identified and successfully managed 4 primary whole-of-reform strategic risks: capacity of the APS to absorb reform; ability of the APS to secure buy-in and communicate the value of reform; management of the complex design of reform as a shared, devolved and tailored program; and passage of legislation.

These risks have been managed at a whole-of-program level, supported by the Change Management Strategy, the Implementation Handbook, performance metrics, and the reform governance architecture.

Capacity of the APS to absorb reform

This risk acknowledges the resourcing constraints of APS agencies to implement multiple reforms within their operating environment at the same time, especially for smaller entities. Key to mitigating this risk is the provision of clear guidance and resources to support change, staggering delivery, streamlining project planning, and ensuring project teams have the right mix of capability and capacity.

Ability of the APS to secure buy-in and communicate the value of reform

This risk reflects the level of awareness, knowledge and ‘buy in’ across agencies about the APS Reform program. Key to mitigating this risk is comprehensive and genuine engagement with those affected by the reforms outside of the public service, clear communication regarding expected outcomes, and open and unambiguous advice to government that highlights both progress and challenges of implementing enduring reforms.

Management of the complex design of reform as a shared, devolved and tailored program

This risk reflects the necessary challenges and uncertainties associated with a large-scale and ambitious program of change. Complex systems transformation—that endures and is delivered at scale—requires a transparent understanding of the varied nature of APS working contexts, and the need to tailor changes to individual organisations’ needs. Key mitigation strategies include clear communication, data-informed reform prioritisation, and consistent reporting mechanisms for monitoring, accountability, and transparency.

Passage of legislation

This risk acknowledges the critical role of legislation in multiple reform initiatives. The government’s legislative program is extensive and supports the full extent of government responsibilities beyond the Reform program. Therefore it is vital that the Reform program makes the most of its limited opportunities for legislative change.

Passage of the Public Service Amendment Act 2024 in June 2024 has ensured the successful and timely implementation of several reform initiatives. Future reforms which may benefit from legislative change will consider both legislative and non-legislative options to achieve the desired outcomes.