Risk Management Policy and Procedure
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- Amber Day
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1 1. Objective To develop a Risk Management Strategy that documents the process used at Master Builders Association of Victoria RTO (hereinafter referred to as Master Builders) to identify, direct, manage, control and/or eliminate risk. The National Vocational Education and Training Regulator Act 2011 places a major focus on Risk Assessment. Risk assessment determines the level of Regulatory Intervention utilising a Risk Assessment Framework (NVETRA Act 2011, S 190 pg 129). 2. Scope This policy applies to all persons employed by or contracted to Master Builders and includes categories of Human Resources, Documentation and Paperwork, Policies and Procedures, Property, Assets and Facilities. 3. Policy Statement Master Builders uses a systematic and continuous improvement approach to the management of risk. Master Builders documents and implements procedures to: a. Identify and manage risks concerned with compliance with the VET Quality Framework and Conditions of Registration for Master Builders. b. Correct and prevent any failure to comply with the VET Quality Framework and Conditions of Registration for Master Builders and Master Builders s quality system, policies & procedures. To minimize Master Builders risk, the following strategies are in place: i. Master Builders has written policies and procedures for ensuring quality Training and assessment is consistent with its scope of registration and scale of operations. ii. Master Builders complies with the VET Quality Framework and Conditions of Registration across all of its operations and in all Training /assessment activities. iii. Master Builders has an organisational chart and duty statements or terms of reference that show the lines of authority in the organisation, the responsibility and allocation of functions. iv. Manager, Training or an external consultant conducts an internal audit of its compliance with these standards, the VTG Funding Contract requirements and all policies and procedures, at least annually. v. Master Builders has a business plan that is consistent with its scope of registration and scale of operations. This plan is reviewed annually. Page 1 of 5
2 4. Definitions Risk is defined as the effect of uncertainty on objectives Risk management refers to the architecture (principles, framework and process) for managing risks effectively, and managing risk refers to applying that architecture to particular risks. Master Builders: a. meets and maintain quality and compliance to & above VET Quality Framework expectations; b. enables formal monitoring and review of risk; and c. aims to become a LOW Risk Provider. 5. Procedure From a VET Quality Framework context, Risk Management involves four steps: a) Identification: Identify Indicators of Risk b) Risk Assessment: Risk Potential and Impact c) Response: Assessment applications, Audits and Monitoring d) Ongoing Review: Audits, Monitoring Performance The Manager, Training is responsible for the identification and management of risks concerned with compliance with the VET Quality Framework and the Standards for RTOs 2015 as well as Master Builders VTG Funding Contract requirements. Each of the instruments within the VET Quality Framework and the VTG Funding Contract is evaluated for compliance. Following identification of a compliance risk, an appropriate compliance control is applied to control and manage the risk. Where required, a corrective action is created with a responsibility and date for completion. This is managed and monitored for completion and signed off by the Manager, Training for closeout verification. All compliance controls are documented within the VET Quality Framework and Master Builders Association of Victoria RTO Quality Manual and are referenced accordingly. Master Builders undertakes the following processes to identify and manage risk: a. A Continuous Improvement Plan is developed by Manager, Training in consultation with staff b. NVR Risk Assessment Framework is reviewed by Manager, Training c. Schedule of internal audits to assess compliance with VQF is notated on Operational Plan and is conducted systematically d. An Internal Audit is undertaken annually to assess compliance with the VET Quality Framework and Conditions of Registration; e. An internal Audit is undertaken annually to assess compliance with the VTG Funding Contract and any Contract Notification s issued by the department from time to time f. The Manager, Training ensures that: Page 2 of 5
3 i. policies and procedures are monitored to ensure quality Training and assessment is consistent with scope of registration and scale of operations; ii. risk management is embedded into RTO practices with the impetus that it must be effective, relevant and efficient; iii. corrective action is implemented to prevent any failure to comply with the VET Quality Framework and Conditions of Registration and Master Builders quality system, policies or procedures; iv. Master Builders develops and implements written procedures relating to continuous improvement of its systems; v. Master Builders policies and procedures meet the requirements of Commonwealth or State/Territory legislation which are relevant to Master Builders operations; vi. Master Builders documents and implements procedures to assure the integrity, accuracy and currency of records; vii. Master Builders policies and procedures include a requirement that it recognises the AQF Qualifications and Statements of Attainment issued by any other RTO (Australian RTO); viii. Master Builders policies and procedures incorporate access and equity principles; ix. Master Builders has written procedures for the recruitment, induction and ongoing development of each member of its staff who is involved in Training, assessment or client service, to encourage and provide relevant opportunities for their professional development, and to monitor their performance; x. Master Builders has developed and implemented strategies for Training delivery and assessment for each Training Package qualification and accredited Training program within its scope of registration through effective consultation with industry; xi. xii. Master Builders complies with the Assessment Guidelines included in the applicable nationally endorsed Training Packages or the assessment requirements specified in accredited Training programs; Master Builders accurately represents to prospective clients Training products and services that lead to AQF Qualifications or Statements of Attainment and ensures that advertised outcomes are consistent with these qualifications; xiii. Training Services Staff and Trainers/Assessors are employed in line with VET Quality Framework and Conditions of Registration requirements and organisational Structure; xiv. Master Builders monitors its financial position formally on a monthly basis; xv. Master Builders proactively identifies and implement Training programs that may attract funding from either Government or on a Fee for Service System; xvi. Master Builders develops a working relationship with the Training funding authorities in state and territories in which it operates; xvii. Master Builders collates data to complete the Management Review Report half yearly. Page 3 of 5
4 6. Management Review Report To ensure that Master Builders continues to improve its services Master Builders systematically checks processes to actual outcomes, via a half yearly Management Review. Results from audits and reviews of feedback are analysed by the Manager, Training and senior management to identify areas for improvement. 7. Corrective Action When corrective action is identified, a Corrective Action Record (FCAR) is raised, monitored (status reports) and actioned. The Manager, Training reviews the Continuous Improvement Register monthly, and discusses the status report on each open action at the Training Team meetings. Completed Actions are also discussed and closed via signoff by Manager, Training. 8. Financial Risk Management 8.1 ACPET Student Tuition Assurance Scheme (ASTAS) Master Builders holds current membership with ACPET Student Tuition Assurance Scheme as approved by ASQA. This insurance ensures that our students that are displaced from a course, due to Master Builders inability to continue the course are relocated efficiently and with minimal disruption to a comparable course with another member of ACPET or approved provider. We will ensure the student is placed into an equivalent course such that: o the new location is geographically close to where the learner had been enrolled; and o the learner receives the full services for which they have prepaid at no additional cost to the student; or o if an equivalent course cannot be found, the student is paid a refund of any prepaid fees for services yet to be delivered above the threshold prepaid fee amount. 8.2 Public & Products Liability Insurance Master Builders holds responsibility to third parties and therefore holds an ongoing insurance with Professional Risk Underwriting Pty Ltd for Public & Products Liability Insurance which covers the Association including the RTO for third party injury or property damage. The activities insured are as an employer association to the building industry, Training, issuing of building permits and town planning advice and insurance services. This Policy is renewed each year, before its expiration date and includes public liability insurance of not less than $20 million per event. Master Builders also has a current Tuition Assurance Scheme with ACPET, which covers loss or damage caused by the Training Services provided, including compensation or transfer of students to another RTO in the event that Master Builders is no longer able to provide the Training Services students are enrolled into. Page 4 of 5
5 Master Builders will ensure that all appropriate Insurances will continue to be taken out at an adequate level until 7 years after expiry of the Term of any funding contract with the Victorian or any other State funding body. Master Builders will also ensure that: a) the insurances are taken out and maintained with reputable insurers b) Master Builders comply with all relevant insurance requirements, including conducting and improving relevant risk management practices and incident notification processes and c) will not do anything to jeopardise indemnity under an insurance policy 9. Responsible Parties The Manager, Training is responsible for the control and issue of this policy. 10. Associated documents Internal Audit Policy (PPIA) Corrective Action Record (FCAR) VET Quality Framework Internal Audit Toolbox (FIAT) Management Review Report (FMRR) Continuous Improvement Register (FCIR) Code of Practice (PPCP) Version Document Control Policy (PPVDC) Version Document Control Register (FVDCR) VQF Quality Management System (PPVQFQMS) Policy developed by: Manager, Training and Compliance Coordinator Refer to: Standard 8, Clause 8.5, Standards for RTOs 2015 Approved by: Policy endorsed by: Corrie Williams, Manager, Training Viviana Hood, General Manager - Commercial Services Radley De Silva, Chief Executive Officer Page 5 of 5
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