1.30 In the 2009-10 MPR, the ANAO's review concluded that while the DMO was working to improve the standard of risk management arrangements applying to Major Projects, the inherently uncertain nature of risks and issues meant that PDSS data could not be considered complete because of unknown risk and issue events that may emerge in the future. For this reason, major risks and issues were placed outside the scope of the ANAO's review.
1.31 Under arrangements with the DMO for this year's review, major risks and issues data in the PDSSs continue to remain out of scope.
1.32 Nevertheless, over the course of the year, the ANAO engaged with the DMO on developments with risk management at an enterprise and project level in order to continue to develop its understanding of the DMO's risk management systems and processes.
1.33 The development of the DMO's ERMF was identified in 2008-09 by the ANAO as a challenging but necessary step for the DMO in striving to achieve its goal of improving project management, which was consistent with advice from the DMO that it would take some time before reliance could be placed on the framework.52 The ANAO highlighted particular challenges, such as the gap between risk management practices and those preferred practices as set out in the ERMF.53
1.34 This year's review continues to note a strong corporate focus on these challenges, although broader executive and organisational engagement was less evident. Work continues to be undertaken by the DMO to better understand and map the business and its controls in the context of enterprise risk management. This includes examining models and approaches that can generate improvements in risk management behaviour and considering how this will be tested within the organisation before the broader adoption of an improvement program.
1.35 At a more applied level, work is being undertaken to improve management's awareness of enterprise risk management and engagement across the organisation. Nevertheless, considerable work remains to be undertaken before effective enterprise risk management is in place to assist the DMO to improve its approach to the identification and management of risks to the delivery of the Major Projects.
1.36 At the project level, the ANAO's review continues to indicate that there has been little progress in improving the consistency of risk management across the Major Projects, as the organisation continues to employ a number of risk management tools. The DMO's main risk management software tool had ongoing operational problems, such as slow response times, and caused a degree of frustration at the project level among competing priorities. Following last year's software upgrade, timely access to risk management training for project staff was again an issue noted during the ANAO's review.
1.37 In 2011-12, the ANAO will continue to review the DMO's progress on risk management across the Major Projects.
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52 Dr SJ Gumley, Official Committee Hansard, Joint Committee of Public Accounts and Audit Hearing, 15 March 2010.
53 Australian National Audit Office, 2008-09 Major Projects Report, Part 1, pp. 38-39.