Statement of Intent 09/12
Managing in a changeable environment
Our risk response
Risk management is a key component of our Planning, Performance and Assurance System. Effective risk management supports the Chief Executive and Strategic Leadership Team to execute their governance responsibilities. It also helps to strengthen the Department's management practices in a manner demonstrable to external stakeholders.
The risk management component includes our risk management policy and a standardised approach to identify, measure, treat and report on key risks. The approach is designed to ensure we identify and effectively manage the key risks that may impact on our ability to achieve our operating intentions. Branch business plans include an outline of the risks that have the potential to impact on service delivery.
Our capability to effectively identify and manage risks is enhanced through our leadership development programme and applying the Department's Charter which defines how we look to perform as an organisation.
The following table describes a number of risks to the achievement of our outcomes.
| Medium-term outcome |
Risks |
Response |
| A business-enabling regulatory environment for building and housing that is efficient and effective, ensures public safety and delivers good quality homes and buildings that perform well in the New Zealand environment |
Regulatory framework changes: Action to simplify and refine the regulatory framework could compromise building quality leading to building failure
Associated legislation: Other legislation (eg, the Resource Management Act and Local Government Act) for which the Department does not have a direct role may not be aligned with changes to the building and housing regulatory framework. This would limit the ability to achieve the desired improvements in sector activity and productivity
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We will work to ensure that, in simplifying and streamlining standards and systems, the right balance is struck between cost/benefit and responding appropriately to risks
We will work with other agencies and stakeholders and participate in inter-departmental initiatives to ensure a collaborative and 'system' approach to building sector reforms
We will contribute actively to work under way on the Resource Management Act and Local Government Act
We chair an inter-agency group which provides coordination and oversight of work impacting on housing and urban development
|
| An enhanced housing and building market that provides an accessible range of houses and buildings that meet New Zealanders' economic and social needs |
Advice to Ministers: Departmental advice may not be sufficiently well tested, or the costs/benefits and impacts not clearly identified. This would limit the ability of Ministers to make quality decisions that take account of broader impacts |
The Department has in place a robust quality assurance process to develop policy advice
We engage actively with stakeholders throughout the policy development process, and test advice to ensure its practicality and effectiveness before advising Ministers
We consider and test the costs, benefits and impacts of all options, and include regulatory impact assessment in policy development and advice
|
| A well performing, professional building and housing sector that has the capability and capacity to do a good job |
Building and construction sector skills: If the level of training and skills in the sector remains low, and/or skills are lost, then the sector's capacity to respond once demand increases will be reduced. This would contribute to delaying an economic recovery, inhibit housing supply and increase the cost of new building and housing |
Solving this issue is not for industry or government alone, but requires a partnership approach. We will work with the education sector, other agencies and the sector to develop and implement a building and construction sector skills strategy based on the recommendations of the Sector Taskforce on Productivity
This will complement the New Zealand Skills Strategy launched in 2008, which is a joint initiative between Business New Zealand, the Industry Training Federation, the New Zealand Council of Trade Unions and government
Licensing of building practitioners - recognising and promoting professional skills and behaviour - is another important contributor to sector skills development. We will develop and implement the occupational licensing system for building practitioners
Identify options for maintaining capacity and skills in the building and housing sector to minimise the loss of skills, and reduce the potential for future price volatility resulting from labour market shortages
|
| Participants in the building and housing market are well informed, can transact with confidence and are supported to resolve their disputes |
Financial pressures: If the reduction in third-party revenues, caused by the economic downturn and low interest rates, continues, then the Department's ability to deliver services could be compromised |
Our Value For Money Programme has identified a range of actions to generate cost reductions and/or improve value
We are reviewing how the Department delivers services and the opportunities presented by online technology to reduce costs and deliver more with less
We are reviewing the fees charged to assess the appropriateness of current fee levels
|
| Continue to build organisational capability |
Capability and capacity: The Department has a substantial work programme. Capability and capacity constraints could impact on the Department's ability to fully deliver the work programme |
Our Planning, Performance and Assurance System and Value For Money Programme will ensure resources are appropriately prioritised and focused on the key deliverables
Our investment in people through development and training will enhance overall capability. Our investment in core business infrastructure over 2008/09 and 2009/10 will support effective service delivery. More broadly, our employee engagement system supports the recruitment, retention and development of staff to do a good job
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