The Department of Defence


Defence had made several attempts to implement an enterprise risk management (ERM) framework but had failed to achieve a process that managed their ‘material’ risks in a meaningful way. No single methodology allowed an effective senior level risk discussion on such organisationally material risks. Defence wanted to understand what represented effective practice from the public and corporate sectors both domestically and internationally. The key requirement was a methodology that addressed all dimensions of risk within a single process using a common language.



Noetic’s experience and expertise in effective risk management practices in organisations aspiring to be high-reliability organisations (HROs) provided Defence with a fresh context in which to examine its key business risks. As a result Defence have an ERM framework that supports its senior decision making processes. Importantly, the ERM framework had a positive effect on Defence’s risk culture with a greater focus on examining the evidence on the effectiveness of risk controls and acceptance that news of ineffective risk controls is valuable information that should be encouraged. This shift in culture and attitude towards risks and controls enhanced Defence’s ability to make informed decisions about those risks.