Audit and Risk Management Committee
Risk management is a fundamental component of managing our operations .
Our processes to identify, assess and manage risk include:
- Audit and Risk Management Committee monitoring of the overall risk management framework, financial reporting processes, processes for compliance, performance of auditors and oversight of the audit program.
- A broad based risk assessment process which is used to develop a rolling three-year internal audit plan and to inform risk management activities.
- The corporate planning processes which prioritise actions based on assessed risks.
- The identification and management of compliance areas on a functional basis with legal support where necessary.
- The project control framework which is used for rule change, review and corporate projects. This includes the creation of a risk register, where relevant, and the active management of identified risks.
Audit and Risk Management Committee responsibilities
The Audit and Risk Management Committee is responsible for monitoring the overall risk management framework, the financial reporting processes, the compliance processes, the performance of auditors and overseeing the audit program.
This includes monitoring auditors and management and advising the Commission of the results of that monitoring in relation to:
- the overall risk management framework;
- financial reporting processes;
- systems for internal control and management of financial risks;
- processes for monitoring of compliance with legislation and regulation and the AEMC’s Code of Conduct and fraud prevention;
- audit scopes, outcomes and actions; and
- performance of auditors.
The Committee provides advice to the Commission on the need for audit and risk management programs for AEMC panels, committees and working groups, such as the Reliability Panel. Where such programs are required the Committee is to monitor the audit outcomes and review the audit programs of those panels, committees and working groups and advise the Commission of the adequacy of these audit processes.
The Committee is responsible for recommending to the Commission the appointment of internal auditors.
In discharging its responsibilities, the Committee is authorised by the Commission to:
- obtain external professional advice (including legal);
- seek information from any employee who shall cooperate with the Committee;
- seek information from parties outside of the AEMC or its Advisory Committees;
- require attendance of AEMC officers at meetings of the Committee; and
- request the Chair of Advisory Committees to provide information.
The AEMC’s Audit and Risk Management Committee is comprised of:
Mr David Pendleton – Independent Chair
Mr Pendleton is a financial services professional with over 30 years of experience in financial functions, audit, superannuation, governance and risk management. Most recently he was Chief Operating Officer and CFO at the Australian Broadcasting Corporation where he was responsible for all financial, operational and technical functions of the ABC. He is currently a non-executive director of The Helmsman Project and an Independent Member of the Wodonga City Council Audit Committee. Mr Pendleton was formerly a director of MediaHub Australia, the National DAB Licence Company and Symphony Australia.
Mr Stephen Horne – Independent Committee member
As a Non-Executive Director since 2015, Stephen has developed a portfolio of audit committee experience spanning the Commonwealth, NSW Government, NSW Local Government and Victorian Local Government sectors, with a diverse range of entity types. He previously served for 38 years in the NSW public sector, including roles of Assistant Auditor-General for NSW, looking after performance audits, and the Chief Executive of IAB, a Government Trading Enterprise undertaking internal audits and misconduct investigations.
Ms Michelle Shepherd – AEMC Commissioner and Committee member
Find information about Ms Michelle Shepherd.
View the full AEMC's Audit and Risk Management Committee Charter.