Corporate governance, firm characteristics and risk management committee formation in Australian companies

Purpose – The purpose of this paper is to examine how a risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation's risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant.

Design/methodology/approach – Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, Chief Executive Officer duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and the existence of a RMC, and the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 Australian Stock Exchange (ASX)-listed companies.

Findings – The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity.

Research limitations/implications – Data limited to top 200 top ASX-listed companies, thus restricting generalisability of the results.

Originality/value – The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

The existence and nature of risk management committees in Australian companies

A risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation’s risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant. Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, CEO duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and (1) the existence of a RMC, and (2) the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 ASX-listed companies. The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity. The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.

Taking environmental water requirements and climate change into account in the designation and management of protected areas for floodplain ecosystems

In 2005, the Victorian government asked the Victorian Environmental Assessment Council (VEAC) to 1) identify and evaluate the extent, condition, values, management, resources and uses of riverine red gum forests and associated fauna, wetlands, floodplain ecosystems and vegetation communities in northern Victoria; and 2) make recommendations relating to the conservation, protection and ecological sustainable use of public land. The design of a comprehensive, adequate and representative (CAR) reserve system was a key part of the recommendations made by VEAC. In order to assist in the decision-making for environmental water allocation for protected areas and other public land, a process for identifying flood-dependent natural values on the Victorian floodplains of the River Murray and its tributaries was developed.

Although some areas such as the Barmah forest are very well known, there have been few comprehensive inventories of important natural values along the Murray floodplains. For this project, VEAC sought out and compiled data on flood requirements (natural flood frequency, critical interval between floods, minimum duration of floods) for all flood-dependent ecological vegetation classes (EVCs) and threatened species along the Goulburn, Ovens, King and Murray Rivers in Victoria. The project did not include the Kerang Lakes and floodplains of the Avoca, Loddon and Campaspe Rivers. 186 threatened species and 110 EVCs (covering 224,247 ha) were identified as flood-dependent and therefore at risk from insufficient flooding.

Past environmental water allocations have targeted a variety of different natural assets (e.g. stressed red gum trees, colonial nesting waterbirds, various fish species), but consideration of the water requirements of the full suite of floodplain ecosystems and significant species has been limited. By considering the water requirements of the full range of natural assets, the effectiveness of water delivery for biodiversity can be maximised. This approach highlights the species and ecosystems most in need of water and builds on the icon sites approach to view the Murray floodplains as an interconnected system. This project also identified for the first time the flood-frequency and duration requirements for the full suite of floodplain ecosystems and significant species.

This project is the most comprehensive identification of water requirements for natural values on the floodplain to date, and is able to be used immediately to guide prioritisation of environmental watering. As more information on floodplain EVCs and species becomes available, the water requirements and distribution of values can be refined by ecologists and land and water managers. That is, the project is intended as the start of an adaptive process allowing for the incorporation of monitoring and feedback over time. The project makes it possible to transparently and easily communicate the extent to which manipulated or natural flows benefit various natural values. Quantitative and visual outputs such as maps will enable environmental managers and the public to easily see which values do and do not receive water (see http://www.veac.vic.gov.au/riverredgumfinal.htm for further details).

Enhancing patient engagement in chronic disease self-management support initiatives in Australia : the need for an integrated approach

♦ Although emphasis on the prevention of chronic disease is important, governments in Australia need to balance this with continued assistance to the 77% of Australians reported to have at least one long-term medical condition.

♦ Self-management support is provided by health care and community services to enhance patients’ ability to care for their chronic conditions in a cooperative framework.

♦ In Australia, there is a range of self-management support initiatives that have targeted patients (most notably, chronic disease self-management education programs) and health professionals (financial incentives, education and training).

♦ To date, there has been little coordination or integration of these self-management initiatives to enhance the patient–health professional clinical encounter.

♦ If self-management support is to work, there is a need to better understand the infrastructure, systems and training that are required to engage the key stakeholders — patients, carers, health professionals, and health care organisations.

♦ A coordinated approach is required in implementing these elements within existing and new health service models to enhance uptake and sustainability.

Integrating farm production and natural resource management in Tasmania, Australia

This paper reports on the social learning from a project aimed to increase the knowledge and capacity of a group of farmers in Tasmania, Australia, to reduce the impacts of intensive agriculture on soil health and waterways, and to optimise the efficient use of on-farm inputs. The plan-do-check-review cycle adopted in this project required the farmers to assess current management practices, identify where to make changes, implement changes and monitor for improvements. The success of the project was due to careful attention to social processes as well as technical input. The combination of group activities with individual mentoring and one-to-one advice was key to the success of this project in enabling farmers to undertake on-farm action.

There is value in social learning that included developing relationships, using one-to-one contact and group workshops together with expert input when working with farmers to tackle some difficult and complex interrelated natural resource management and production issues. Sufficient time must be allowed for the process of facilitating good practice in natural resource management, particularly when addressing systemic environmental impacts. Practical operational recommendations are presented on communication, feedback, focus of activities and meeting content, as these will be useful to other project officers and facilitators working with farmer groups.

Building social capital in groups : facilitating skill development for natural resource management

Analysis of the experiences of four farmer groups set up to learn how to jointly manage local natural resource issues shows that the groups are going though two simultaneous processes. One builds technical competency in natural resource management and the other is the underpinning social process that allows the groups to make decisions and work collectively, which builds social capital. Natural resource management practitioners and farmers are practical people. They are likely to be more comfortable with a process that develops monitoring tools and benchmarks for natural resource management than a process of group development and social capital formation. Yet the two are intrinsically linked. This paper reflects on and analyses the experience of establishing and working with farmer groups as they go through a process of identifying environmental issues, setting and monitoring environmental benchmarks and identifying and implementing sustainable farming practices to meet the benchmarks.

Two questions emerged from the analysis. First, how do the four groups compare to other measures of effective natural resource management groups? Second, what are the characteristics of the groups that make them more or less effective and what has occurred in the groups (either before or during this project) to make them more or less effective? Social capital emerges as a key determinant of group effectiveness. Social capital is most effective when it comprises a balance of bonding and bridging networks, and includes shared values in relation to the purpose of the group.

Policy makers and extension workers need to understand the link between the two simultaneous processes occurring as people come together in groups to define and implement best practice at a local level, and how to use knowledge of social processes when designing the more concrete process of developing and implementing best practice monitoring and benchmarking with groups. An understanding of how people build social capital as they work in groups will assist with designing and facilitating group projects in a range of contexts, not only natural resource management.

Restructuring of education and training in Vietnam : a development and application of arts management training in Australia to Vietnam

The adoption of a more market-oriented economy under doi moi has paved the way for Vietnam to record remarkable human development achievements in the past decades. The Vietnamese education system has been undergoing continuous changes for almost twenty years. Key reforms have been implemented in the education and training sector such as privatising the sector; expanding the schooling system, the vocational education and training (VET) system, and higher education. This paper examines: (1) key reforms implemented in the education and training sector, placed in a broader context of economic reforms in Vietnam; (2) a development of arts management training courses in Vietnam to assist cultural organisations to adjust to social changes, as Vietnamese education institutions have not had much experience in designing training courses in arts and culture management; (3) several arts management training courses in Australian institutions to see the possibility to apply training in arts management in Australia to Vietnam. The findings indicate that a variety of management training modes in Australia can be adapted and applied to the Vietnamese training context. Some factors such as differences in culture, education and training systems, shortages in training staff and resources are also considered in this paper.

Governance, employees and CSR : integration is the key to unlocking value

Corporate governance has gained increasing importance in the last decade as organisations have been involved in bankruptcies and frauds alongside decreases in organisational value and jobs. Researchers have signalled a need for new perspectives and models of governance, especially one that clearly identifies and embeds employees as part of the system. This article explores the importance of human resources as a key component of the governance system. It discusses whether organisational rhetoric in relation to stakeholders and social responsibility incorporates employees and in doing so it delves into the concept of labour as a key stakeholder. The article examines publicly available reports of two resource-based firms and two finance-sector firms: Rio Tinto, Shell Australia, Westpac and ANZ Bank to explore the position of labour. It concludes that the position of labour as a stakeholder is problematic, with a divergence between espoused statements on CSR and how they are operationalised throughout the organisation. The emphasis seems to be on environmental and financial sustainability with lesser importance placed on dimensions of workplace management and accompanying employee relations approaches.

Manual on application of molecular tools in aquaculture and inland fisheries management. Part I : conceptual basis of population genetic approaches

The aim of this manual is to provide a comprehensive practical tool for the generation and analysis of genetic data for subsequent application in aquatic resources management in relation to genetic stock identification in inland fisheries and aquaculture. The material only covers general background on genetics in relation to aquaculture and fisheries resource management, the techniques and relevant methods of data analysis that are commonly used to address questions relating to genetic resource characterisation and population genetic analyses. No attempt is made to include applications of genetic improvement techniques e.g. selective breeding or producing genetically modified organisms (GMOs). The manual includes two ‘stand-alone’ parts, of which this is the first volume: Part 1 – Conceptual basis of population genetic approaches: will provide a basic foundation on genetics in general, and concepts of population genetics. Issues on the choices of molecular markers and project design are also discussed. Part 2 – Laboratory protocols, data management and analysis: will provide step-by-step protocols of the most commonly used molecular genetic techniques utilised in population genetics and systematic studies. In addition, a brief discussion and explanation of how these data are managed and analysed is also included. This manual is expected to enable NACA member country personnel to be trained to undertake molecular genetic studies in their own institutions, and as such is aimed at middle and higher level technical grades. The manual can also provide useful teaching material for specialised advanced level university courses in the region and postgraduate students. The manual has gone through two development/improvement stages. The initial material was tested at a regional workshop and at the second stage feedback from participants was used to improve the contents.

Manual on application of molecular tools in aquaculture and inland fisheries management. Part I : laboratory protocols, data management and analysis

The aim of this manual is to provide a comprehensive practical tool for the generation and analysis of genetic data for subsequent application in aquatic resources management in relation to genetic stock identification in inland fisheries and aquaculture. The material only covers general background on genetics in relation to aquaculture and fisheries resource management, the techniques and relevant methods of data analysis that are commonly used to address questions relating to genetic resource characterisation and population genetic analyses. No attempt is made to include applications of genetic improvement techniques e.g. selective breeding or producing genetically modified organisms (GMOs). The manual includes two ‘stand-alone’ parts, of which this is the second volume: Part 1 – Conceptual basis of population genetic approaches: will provide a basic foundation on genetics in general, and concepts of population genetics. Issues on the choices of molecular markers and project design are also discussed. Part 2 – Laboratory protocols, data management and analysis: will provide step-by-step protocols of the most commonly used molecular genetic techniques utilised in population genetics and systematic studies. In addition, a brief discussion and explanation of how these data are managed and analysed is also included. This manual is expected to enable NACA member country personnel to be trained to undertake molecular genetic studies in their own institutions, and as such is aimed at middle and higher level technical grades. The manual can also provide useful teaching material for specialised advanced level university courses in the region and postgraduate students. The manual has gone through two development/improvement stages. The initial material was tested at a regional workshop and at the second stage feedback from participants was used to improve the contents.

Processes influencing the development of graduate nurse capabilities in clinical risk management : an Australian study

Objectives: To explore and describe key processes influencing the development of graduate nurse capabilities in clinical risk management (CRM).

Methods: This study was undertaken using an exploratory descriptive case study method. Four sample units of analysis were used, notably: 2 cohorts of graduate nurses (n = 11) undertaking a 12-month graduate nurse transition program; key stakeholders (n = 34), that is, nurse unit managers, clinical teachers, preceptors, a quality manager, a librarian, and senior nurse administratiors employed by the participating health service; patient outcome data; and pertinent literature.

Results: Data strongly suggested that graduate nurse capabilities in CRM were most influenced not by their supposed lack of clinical knowledge and skills but by their lack of corporate knowledge. The failure to provide new graduate nurses with pertinent information on CRM at the beginning of their employment and thereafter at pertinent intervals during the graduate nurse year program aslo hindered the development of their capabilities to manage clinical risk.

Conclusions: Management and educational processes pertinent to informing and involving new graduate nurses in a hospital's local CRM program (including information about the organization's local policies and procedures) need to be implemented systematically at the very beginning of a new graduate's employment and thereafter throughout the remainder of the graduate nurse year.

Clinical risk management and patient safety education for nurses : a critique

Nurses have a pivotal role to play in clinical risk management (CRM) and promoting patient safety in health care domains. Accordingly, nurses need to be prepared educationally to manage clinical risk effectively when delivering patient care. Just what form the CRM and safety education of nurses should take, however, remains an open question. A recent search of the literature has revealed a surprising lack of evidence substantiating models of effective CRM and safety education for nurses. In this paper, a critical discussion is advanced on the question of CRM and safety education for nurses and the need for nurse education in this area to be reviewed and systematically researched as a strategic priority, nationally and internationally. It is a key contention of this paper that without ‘good’ safety education research it will not be possible to ensure that the educational programs that are being offered to nurses in this area are evidence-based and designed in a manner that will enable nurses to develop the capabilities they need to respond effectively to the multifaceted and complex demands that are inherent in their ethical and professional responsibilities to promote and protect patient safety and quality care in health care domains.

Investigating people management issues in a third sector health care organisation - an inductive approach

Objective : To explain use of inductive convergent interviewing to generate the perceived critical people management issues, as perceived by staff, as a prelude to longitudinal surveys in a third sector health care organisation.

Design : Convergent interviewing is a qualitative technique that addresses research topics that lack theoretical underpinning and is an inductive, flexible, evolving research approach. The key issues converged after six rounds of interviews as well as a further round to ensure that all of the common people management issues had been generated.

Setting : Studies in employee behaviour in the health care industry exist, but there is little in the way of tested models of predictors of such behaviour in third sector organisations in the Australian health care industry. The context is what differentiates this study covering a range of facilities and positions in hospitals and aged care situations within one third sector health care organisation.

Subjects : The study proposed twenty seven extensive interviews over a range of facilities and positions. Twenty one interviewees participated in the final convergent process.

Conclusions : Critical issues included: workload across occupational groups, internal management support, adequate training, the appropriate skill mix in staff, physical risk in work, satisfaction, as well as other issues. These issues confirm the proposition of sector‑ness in health organisations that are multi‑dimensional rather than uni‑dimensional.

Ecological processes : a key element in strategies for nature conservation

A common approach to nature conservation is to identify and protect natural 'assets’ such as ecosystems and threatened species. While such actions are essential, protection of assets will not be effective unless the ecological processes that sustain them are maintained. Here, we consider the role of ecological processes and the complementary perspective for conservation arising from an emphasis on process. Many kinds of ecological processes sustain biodiversity: including climatic processes, primary productivity, hydrological processes, formation of biophysical habitats, interactions between species, movements of organisms and natural disturbance regimes. Anthropogenic threats to conservation exert their influence by modifying or disrupting these processes. Such threats extend across tenures, they frequently occur offsite, they commonly induce non-linear responses, changes may be irreversible and the full consequences may not be experienced for lengthy periods. While many managers acknowledge these considerations in principle, there is much scope for greater recognition of ecological processes in nature conservation and greater emphasis on long time-frames and large spatial scales in conservation planning. Practical measures that promote ecological processes include: monitoring to determine the trajectory and rate of processes; incorporating surrogates for processes in conservation and restoration projects; specific interventions to manipulate and restore processes; and planning for the ecological future before options are foreclosed. The long-term conservation of biodiversity and the wellbeing of human society depend upon both the protection of natural assets and maintaining the integrity of the ecological processes that sustain them.

Using competencies in human resource management : case studies in Australian companies

This study investigated the use of competencies for human resource management in seven Australian companies. Despite advocacy for the use of competencies by Government Committees and Task Forces (For example Carmichael (1992), Mayer, (1992) and Karpin, 1995), and the existence of competency standards for eighty per cent of the Australian workforce, the competency approach has not been widely adopted. A review of the literature indicated that the term competency had several meanings with different implications for its use depending on the meaning. The study looked at how individuals have defined the term and applied the approach to human resource management practices. Interviews were conducted with Human Resource and Training managers, and operative staff in companies using competencies. How they defined the term, described the rationale for using competencies, and applied competencies to selection, training, performance appraisal and remuneration were determined. Case studies were written for each company to describe their particular application of competencies. Competencies were found to be defined in several ways by those interviewed. Some advantages of using competencies in human resource management applications were found. The amount of work involved in introducing the competency approach was described as a reason why competencies have not been more widely adopted.