Managing in a Changeable Operating Environment

Risk management

A core element of being able to meet challenges and take on new opportunities in achieving our strategic direction is the way we identify and manage risk. We acknowledge, and our policies reflect, that risk management supports good governance and informed decision-making. Our Risk Management Framework developed in 2008/09 will implement our risk policy and provide LINZ with:

• a business-wide approach to risk management
• risk management as part of priority setting and decision-making activities, and
• confidence that risks are identified, communicated and managed.

We already proactively manage risks associated with our e-focused interventions, industry self-compliance and decision-making processes but realise that, as we start to execute our new areas of strategic focus, new risks will need to be managed.

Other aspects of managing our strategic risks are the risks associated with service provision. We manage these through various avenues such as the Project Management Framework, regular independent reviews of our decision-making processes, strategic business planning processes, information technology control processes, and our regulatory intervention risk-based framework. We also have an Audit Committee, and Business and Risk Assurance functions providing advice to the Chief Executive.

Strategic alignment

Strategic risk is the current and prospective risk to achieving our end outcomes, the reputation of LINZ or our capability to operate at the highest level. This may arise from strategic choices, the improper implementation of our strategic choices, or changes to the environment. To mitigate this we need to have a clear understanding of emerging issues by using and monitoring relevant indicators and trend data. We are currently looking at ways to reinforce environmental scanning across the organisation so that we can identify weak signals before they become an issue. The development of a Strategic Research and Evaluation Framework will also contribute to the measurement of progress towards our outcomes and expose any risks that will prevent us from achieving those outcomes.

Our role and mandate authorise us with responsibility for contributing to certain outcomes in relation to land (or real) property rights. In determining LINZ’s role within government, particularly our leadership in the geospatial sector, and in developing a clear articulation of the government’s expectations regarding the land market, we provide confidence to Ministers that our contributions are aligned
with the Government’s priorities.

Decision-making

LINZ’s statutory decision-making relies on high levels of judgement. This requires robust analysis and sound and documented processes.

Our focus on optimal regulation requires a clear rationale for intervention, and that intervention needs to be aligned with risk. The level of industry co-operation required to move to an ‘optimal’ level of regulation may require a shift away from the current paradigms in which each industry operates.

These and other risks related to our regulatory outputs are managed through:

• ongoing review (including consultation) of standards and rules to ensure an optimal level of intervention
• regular audits to ensure compliance with standards through a quality assurance function
• collaboratively establishing a strategic context with each industry group to identify what is likely to occur in the future and what can be done to shape and meet that future, and
• ensuring decisions are clear and transparent, underpinned by sound documented rationale and cross-agency consultation.

Core business systems — people, processes & technology

LINZ is increasing its reliance on electronic delivery of information, products and services. This increased reliance requires LINZ to have a comprehensive approach to ensuring the stability of the underpinning technology infrastructure. Key to this comprehensive approach are:

• robust architectural principles for guiding decision-making, and
• capacity planning and regular technology maintenance to ensure the infrastructure is current and able to respond to our changing environment.

Associated with e-delivery is a risk of a loss of knowledge about LINZ core paper records, combined with the requirement to move records due to the upcoming closure of three LINZ offices. The implementation of our strategy for these core paper records aims to ensure continued and improved access, safe and efficient storage, and that records are preserved.

The maintenance of technical capability in an environment of electronic delivery and self-regulation is a key risk for LINZ. We are developing a strategy that will include options such as targeted recruitment and using industry secondments.

We also ensure ongoing development and integrity of our electronic systems through:

• relationship management and consultation with customers to proactively identify and manage their needs, and
• standardised, risk-based validation procedures to ensure data complies with standards.