1.5 Business and Insurable Risk Profile Analysis

KEY RESULT AREA CURRENT POSITION FUTURE POSITION

 Capital Works

Workforce

Primary water sources: Manning River Karuah River Crawford River Tea Gardens Aquifer

Capital Works Program is current. Commissioning of the Nabiac Inland Dune Aquifer Borefield and Nabiac Water Treatment Plant to improve security of supply.

Expenditure shifting from major capital works to asset management. Significant capital investment has been required over the past 20 years to bring water and sewerage infrastructure in line with legislative requirements and the expectations of the community.

Finance 30 year financial plan sets out strategy for operations and capital expenditure and income. Attracting and retaining talented, first class employees continues to remain a significant priority for Water Services. We aim to achieve this by creating and providing a workplace that is safe, ethical and where our employees continue to be challenged to be innovative and make a difference. The water and sewer funds will be managed in a manner to achieve an operating surplus in each fund. A dividend may then be able to be transferred into Council’s consolidated revenue in accordance with section 409 (5)-(7) of the Local Government Act 1993.

1.5 Business and Insurable Risk Profile Analysis

The provision of water and sewerage services is a risky business. We must manage risks associated with providing what is essentially a food product (water) direct to thousands of homes and businesses every day, as well as those risks related to the safe and responsible transport, treatment and disposal of sewage. Additionally, we must address risks relating to managing aging water and sewer assets, a low density customer base, uncontrolled catchments, high infiltration into sewerage systems, and the secure yield of water supplies.

MidCoast Water Services recognises that risk management is an integral part of good management practice and we are committed to establishing an organisational culture that ensures a consistent and systematic application to risk management, one that is embedded in all of our activities and business processes. We are focused on identifying risks in order to

make conscious decisions to accept, transfer or mitigate these risks in order to achieve our strategic goals and objectives.

MidCoast Water Services’ risk appetite is in line with our strategic vision, mission and values. We have zero tolerance for risks that may compromise the safety and welfare of staff or members of the public. There is also limited tolerance to lack of transparent decision making and lack of good governance practices ensuring we put MidCoast Water Services in a good stance for future opportunities. We have limited appetite for risks that may have an adverse impact on long term financial sustainability.

A summary of insurance policies held by MidCoast Water Services is shown in Appendix B – Summary of Insurance.

Risk management is discussed further in Section 5.8.