7How does the risk-based compliance approach work?#
Risk is managed on two levels:
- strategic (systematic risk), and
- operational (provider risk).
| Level of Risk | Description |
|---|---|
| 1. Systemic | Systemic risk is defined as any risk likely to exist across more than one or two RTOs. If left untreated, significant risks of this type have a detrimental impact on the quality of training and assessment for individuals, industry and the wider community. This may lead to unsafe practices in traffic management at roadworks and a loss of confidence in the department. |
| 2. Provider | Provider risk is the risk an individual RTO presents through their choices and actions, behaviours and practices. If left untreated, this could have a significant detrimental impact on training and assessment outcomes. |
7.1Managing systemic risk#
Systematic risks are identified through environmental scanning. These environmental scans draw on inputs from a range of sources including but not limited to:
- Transport and Main Roads regulatory data (traffic management registration and regulation data)
- stakeholder engagement (Councils, QPS, RACQ, State Authorities / Regulators / Bodies / Associations)
- print and social media
- government and industry reviews and findings
- intelligence from internal and external sources.
Environmental scanning identifies areas of concern for Transport and Main Roads, towards which regulation and compliance effort can be targeted. The information derived from environmental scanning influences and informs the direction of the compliance requirements for the development of training materials and for the RTOs who are licensed to deliver TC and TMI on the department’s behalf.
7.2Managing provider risk#
Managing provider risk is the foundation of Transport and Main Roads’ governance approach. The department addresses this level of risk by using data and intelligence to identify and intervene with individual providers.
7.2.1Target areas 1: RTO compliance with the licence agreement/s#
There are a range of mechanisms for identifying and assessing provider risk. These enable the department to monitor and identify those providers who present greatest risk of adversely affecting the quality of training delivery and the safety of training participants and road users.
Transport and Main Roads continuously reviews provider performance through a central system – RTO Governance Framework. Provider profiles include information such as:
- provider compliance history
- monthly reports submitted to Transport and Main Roads (timely, accurate data provision)
- current and past complaints
- desktop audits – monthly reports, student’s records and pre-compliance audit
- compliance audits – onsite, and
- provider conduct to rectifying non-compliance (rectification plans).
7.2.2Target area 2: Trainer and assessor capability#
RTO trainer and assessor capability is a critical concern for the delivery and assessment of the approved programs. Trainer capability and the quality of delivery and assessment practices directly affects the integrity of the approved program outcomes.
ASQA’s Regulatory Strategy 2017 –18 attributes the ‘lack of trainer and assessor capability” to a range of drivers, with responsibility for addressing this issue shared among a number of stakeholders.
They group the main causes into two main areas:
- 1.the quality of delivery and assessment of the Certificate IV in Training and Assessment (TAE) qualification, and
- 2.lack of continuing professional development of the trainer and assessor workforce beyond TAE.
Cause 1 is out of Transport and Main Roads’ scope and is being addressed by ASQA.
The following strategies help minimise the risk of Cause 2:
- scrutiny of RTOs and their trainers and assessors who apply to deliver the approved programs (Trainer application form)
- submission of evidence of 10 days per year of currency and professional development evidence for every approved trainer and assessor (RTO renewal application)
- monitor and observe the delivery and assessment of the approved programs (Training observation form)
- implement a trainer / assessor risk profile (under development)
- provide communication, education and tools for providers to promote quality training and assessment practices (Training packages).
7.3RTO analysis#
New RTOs#
Upon application, all new RTOs are to meet a minimum standard criteria (Application to deliver the approved program/s). New RTOs are initially unrated and are monitored based on the data and evidence gathered from the points listed in the two target areas. All new RTOs will participate in a compliance audit within 12 months of initial approval. A risk assessment rating will be determined after the compliance audit.
Existing RTOs#
All RTOs are assessed individually prior to the annual licence renewal process using a standard risk assessment matrix. The outcome of the assessment is a risk rating of low, medium, high or extreme. An independent panel is then convened to review the rating assigned. The panel reviews each provider’s profile information, audit outcomes and any other evidence related to their performance. The panel has the discretion to either confirm, change or request further information regarding the risk rating.
The Transport and Main Roads RTO risk treatment hierarchy is then applied to each RTO. (RTO Risk Treatment Hierarchy).