The Australian National Audit Office (ANAO) has raised significant concerns about risk management practices within government entities. 

In a revealing report published on January 9, the ANAO found that a mere 33 per cent of public entities have received a positive audit for their risk management practices since July 1, 2021. 

This figure is alarmingly low, considering the importance of risk management in government operations.

The audit, which encompassed 75 of 90 audits over the past two financial years, underscores a critical need for improvement across the public sector. 

With 16 per cent of entities receiving negative audits and 51 per cent a mix of positive and negative, the findings highlight a widespread challenge.

The ANAO’s audit of the Northern Land Council (NLC) was used in the report as an example of the existing issues. 

While the NLC maintains a risk register, Auditor-General Grant Hehir noted its inadequacies. 

“A suite of corporate policies has been established, although not all policies have been operationalised through appropriate supporting procedures and some are not appropriately endorsed and finalised,” Hehir noted.

This situation is compounded by emerging technologies, like generative AI, which present new and poorly understood risks. 

The government's response to last year's consultation paper on the safe use of AI reflects this concern. 

Industry and Science Minister Ed Husic says there is a need for strong guardrails.

“We have heard loud and clear that Australians want stronger guardrails to manage higher-risk AI,” Husic said, advocating for safe and responsible AI development.

As technologies evolve and the landscape of public service changes, the ANAO says it is imperative that risk management practices keep pace to ensure effective governance and public trust.

More details are accessible here.