3.24 An enhancement to the area of risk identification in the 2009-10 MPR was the inclusion of emergent risks for projects. These are risks that had not been previously identified but emerged as major risks during the year. This enhancement was intended to address the JCPAA's interest in improved clarity of the emergence of risks over the course of a project's duration.
3.25 To some degree, major risks will emerge as part of a project's normal acquisition life cycle. For example, as the DMO prepares to enter into a contract with industry, risk management processes should be able to clearly identify the nature and severity of contract risks, which may then take on a focus as one of the areas of major risk management for the project at that time. However, as a project progresses, risks associated with achieving the expected capability can arise, and it is not uncommon for previously unanticipated major risks to emerge despite the risk management processes in place to identify and manage risks.
3.26 Emergent risks listed in the 2010-11 PDSSs cover new major risk entries not previously listed by the project as at 30 June 2010. The ANAO expects that further development and tracking of emergent risk data over the next few years could support analysis around the type of major risks that emerge each year and how well risk management mechanisms are anticipating major risks.