Risk Appetite Statement

Advice/Customer Service

  • Provide quality, independent and objective advice so that we:
    • strengthen our trusted advisor status with the Treasurer and Premier
    • avoid an unanticipated impact on State finances of +/- $500m
  • Drive achievement of Fiscal Responsibility Act 2012 targets:
    • maintain AAA credit rating
    • keep expense growth below revenue growth
  • Securely maintain confidential and sensitive data and only disclose as required by contractual & legislative obligations

* Implement a strong customer centric culture so that we have no more than one ministerial  concerning a customer complaint where LSC actions were incorrect per year

Project, Transaction & Business Management

  • Implement strong governance over all key projects, transactions and BAU activities to ensure:
    • effective decision making
    • clear accountabilities and responsibilities
    • timely & quality delivery
  • 100% compliance with applicable policies, legislation & regulation
  • No successful litigation claims against LSC

Budgeting, Forecasting & Financial Reporting

  • Excellence in budgeting and forecasting demonstrated by:
    • gross budget variance for non-systemic items <$1m for revenue and <$2m for expenditure
    • adherence to NSW Public Sector Wages Policy (incl. 2.5% cap)
  • Produce high quality, accurate and timely financial reporting and minimise public censure by the Audit Office of NSW:
    • unqualified Auditor opinion on the LSC financial statements
    • Audit Office identify < 2 errors above $20m
  • Maintain sufficient liquidity to meet all short term cash obligations as they fall due
  • Continually invest in IT infrastructure and applications to enable business strategy and ensure recovery of the payroll system within 24 hours and for other business critical systems within 1 week of a service interruption  ^
  • Asset to liability coverage (ABRI) target of 115% with a range of 105% - 125%

People & Capability

  • Maintain zero tolerance for workplace injury and fatalities
  • Drive superior People Matter Employee Survey results:
    • Survey response rate is > 75%
    • Engagement Index score is 5% better than Sector average
    • Scores are better than Sector average for all questions
  • Develop talent by ensuring:
    • Performance & Development Plans exist for all staff
    • succession plans exist for all critical roles
  • Demonstrate the LSC is an Employer of Choice:
    • voluntary staff turnover is < 10%
    • promote staff mobility by ensuring the average number of years in the same role is < 3 Years
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