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Deliver on Australia’s priorities for the benefit of people, industry and the environment through nuclear excellence in research and the use of national infrastructure
Educating and engaging with the wider community enables ANSTO to grow a more informed generation of Australians who understand the benefits of nuclear science and technology. We will build confidence, trust, and a social license for ANSTO to enable Australia to respond to nuclear opportunities for our future.
ANSTO will focus on the delivery of our national teacher professional development courses and continue to increase our engagement and support for science teachers and students nationally. Our virtual and augmented reality technologies provide effective and affordable online resources which have been valuable during the COVID-19 pandemic. ANSTO’s National Science Week Student Hackathon is growing in popularity and we are promoting an interest in STEM and innovation careers outside of the school environment through our popular school holiday workshops and new ANSTO STEAM Club.
Measuring performance:
Performance measure
Share with the general public research outcomes enabled by ANSTO
Offer a range of resources for teachers and students to support the national science curriculum outcomes for years 3 to 12
Increase accessibility of STEM teacher training programs
Conduct educational tours and science experiences at ANSTO’s Sydney and Melbourne campuses
2022-2023 2023-2024 2024-2025 2025-2026
≥ 36 science stories published on the ANSTO website per annum
Deliver ≥ six national programs per annum
Deliver teacher professional development days in all states and territories
≥ 15,000 ≥ 15,000 ≥ 15,000 ≥ 15,000
visitors to ANSTO’s campuses per annum
STRATEGIC OBJECTIVE 4 –
Lead the development of a nuclear-capable workforce aligned with government policy objectives
With an increasing demand for nuclear technologies, it is essential that we secure a talent pipeline for the nuclear industry. To deliver beneficial outcomes, it is imperative that we develop our leading capability: our people. We already have a diverse workforce and employ some of Australia’s biggest minds; we will continue to partner with the university sector to increase the number of Australians who can work in nuclear science and engineering. ANSTO strives to be leader in the diversity and inclusion space by employing a range of initiatives such as Women in STEM Decadal Plan, an LGBTQI+ Staff Support Network, a Parental Career Phase resource, a Domestic and Family Violence Support Program and inclusive leadership programs.
Provide an inclusive environment that empowers our people and supports a culture of collaboration and engagement
At ANSTO, we understand that diverse teams produce better outcomes. We seek to create a culture of inclusion, where diversity of thought and different perspectives are a source of organisational agility, resilience and renewal. Our empowering and effective work-based policies that support flexibility and the individual needs of our employees, enable us to attract and retain the best talent to work with us in the future.
Measuring performance:
Performance measure
Leadership teams – representation
ANSTO-wide – representation
2022-2023 2023-2024 2024-2025 2025-2026
Female 40% | Male 40% | Discretionary 20%
Female 40% | Male 40% | Discretionary 20%
3.4.2 Develop a workforce plan for the next generation of specialised nuclear professionals
Our people, the custodians of Australia’s nuclear and accelerator expertise, are amongst our nation’s most talented researchers, scientists, engineers and nuclear experts. To secure Australia’s growing nuclear science and technology needs, it is critical that we work with other organisations in government, industry and the education sector to develop the next generation of talent.
Key activities for 2022–2026: How we will deliver on our strategy and purpose
People Hub platform
ANSTO has implemented an all-inclusive cloud-based human resources (HR) online platform to create exceptional employee experiences and facilitate knowledge sharing. Three modules have been completed and the current process of implementation of the HR analytics function will provide management with visibility of their employee-related data. Through this, we will be able to make clear, informed strategic decisions about the future workforce of ANSTO.
Future capability planning
ANSTO is employing FAETHM’s artificial intelligence (AI) software across the organisation’s business critical roles to anticipate workforce supply and demand up to ten years into the future and utilising data-driven insights to boost future capabilities. Comparing insights across occupational ontologies will allow us to identify which skills are transferable to future jobs, thereby improving the success of internal mobility programs and the retention of high-performing talent in roles with future growth. By empowering our workforce to grow with the organisation, we prepare for new ways of working and resilience in times of disruption and uncertainty.
Organisation capability development
Upon completion of the engineering capability development project which mapped out our current and future capabilities for our engineering team, we will focus on mapping the capabilities of our entire organisation. We are currently analysing the future needs of the Australian nuclear industry and identifying what our workforce will need to continue to deliver our purpose into the future. By expanding the process developed by Engineers Australia, the current skills and qualifications of ANSTO’s workforce will be mapped to create an organisation-wide capability framework. This framework will then work hand-in-hand with the People Hub platform and its ever-expanding capabilities. From this, the creation of development plans will pave a pathway for training and enhancing skill development. This will allow us to adapt to the dynamic nature of the nuclear industry whilst also creating an agile technical workforce, where our staff can lead the way in innovation and expertise for Australia.
Key activity Outcome
People Hub platform Enhance ANSTO’s Human Resource capabilities, enabling us to monitor and build up the capabilities of our people.
Organisation capability development
Future capability planning
Create a highly skilled, agile technical workforce.
Creation of a workforce plan for the future.
P Preparation I Implementation C Completion M Monitoring and improving
2022-2023 2023-2024 2024-2025 2025-2026
I C M M M
P I I I C
P I C M M
Performance measure
Postgraduates supervised
2022-2023 2023-2024 2024-2025 2025-2026
150 150 160 160
Announced in 2020, FutureNow Scholarships were provided by the NSW Government to support graduate students and early career researchers working on industry-focused translational research projects. Scholarship recipients work under the guidance of some of Australia’s current leading scientists and researchers with the ability to access ANSTO’s national and landmark infrastructure. As a result of these additional scholarships, the ‘postgraduates supervised’ performance measure has been adjusted to incorporate these scholarships.
3.4.3 Ensure a highly reliable, safe and secure environment
Key activities for 2022–2026: How we will deliver on our strategy and purpose
ANSTO is committed to ensuring our staff work in safe, supportive environments. In light of this, we recognise that a strong safety culture focuses not only on physical safety, but also on the wellbeing of our people. A mature safety culture directly contributes to a safe and secure workplace. To prevent and minimise disruptions to our people, facilities and operations we will continue to effectively detect and respond to security threats. We will continue to identify and develop innovative solutions to enhance our security, including cybersecurity.
Cybersecurity uplift program
We will continue our development of tools and processes to provide for a mature contemporary cybersecurity operations capability that aligns with international and national best practice, commensurate with risk. Across ANSTO’s entire technology landscape, we will make maturity improvements to the Australia Government’s essential eight cybersecurity controls and the operationalisation of modern cybersecurity technologies. This includes security information and event management, vulnerability management, and advanced user awareness and training services.
Key activity Outcome
Cybersecurity uplift program
Contemporary cybersecurity operations capability and mitigation of cybersecurity risks.
P Preparation I Implementation C Completion M Monitoring and improving
2022-2023 2023-2024 2024-2025 2025-2026
M M C M
Performance measure
Improvement in safety culture
Improvement in site-wide safety
2022-2023 2023-2024 2024-2025 2025-2026
Increase in opportunities for improvement (OFI) to actual incidents recorded*
Zero Class 1 incidents**
Year on year decrease in Class 2 & 3 incidents***
* OFI – An event that did not result in any adverse effects to personnel or the environment and is not considered to have had the potential to cause a lost time injury, medical treatment injury or exposure of personnel, or harm to the environment; but could have resulted in a minor occurrence or damage to plant and equipment. ** Class 1 – Damage that permanently alters a person’s life ***Class 2 – Damage that temporarily alters a person’s life
Class 3 – Inconveniences in person’s life or 1–5 days/shifts off work.
3.5
Our subsidiaries
ANSTO subsidiaries and companies operate in the context of the Corporate Plan to enhance our capabilities, fulfil our purpose and strategy, and provide transitional arrangements as we reorganise our activities.
ANSTO Subsidiaries Jurisdiction of Operation Description
PETTECH Solutions Pty Ltd
New South Wales PETTECH Solutions Pty Ltd (PETTECH) is a wholly owned ANSTO subsidiary which owns a cyclotron facility. On 2 January 2019, the business of this company was sold to Cyclotek NSW Pty Ltd. PETTECH Solutions Pty Ltd remains the owner of the major facility assets (building, cyclotron and hot cells) and is entitled to a share of profits from the Cyclotek NSW business in connection with this arrangement.
Deliver excellent research and use national research infrastructure in support of Australia’s priorities that benefit Australian industry, people and the environment
(Strategic Objective 1)
ANSTO Nuclear Medicine Pty Ltd
New South Wales ANSTO Nuclear Medicine Pty Ltd (ANM) is a public non-financial corporation to which ANSTO and the Minister for Industry, Science and Technology (on behalf of the Commonwealth) are shareholders. ANSTO is the operator of the ANM Molybdenum-99 (Mo-99) Manufacturing Facility, which produces of one of the world’s most important nuclear medicines. Through ANM, ANSTO is able to supply Mo-99 to the Australian and global market.
Improve the health of Australia by supporting access to current and future nuclear technologies for diagnostic, therapeutic and innovative treatments for current and emerging diseases
(Strategic Objective 2)
Other Companies*
*where ANSTO possesses a material interest
Applied Molecular Therapies Pty Ltd
Victoria Contract development and manufacturer of radiopharmaceutical products.
Improve the health of Australia by supporting access to current and future nuclear technologies for diagnostic, therapeutic and innovative treatments for current and emerging diseases
(Strategic Objective 2)
3.6
Our Corporate Plan is our key strategic planning document. Results of our performance against this Corporate Plan and the Portfolio Budget Statements (PBS) are provided in our Annual Report.
Corporate Plan
Our Corporate Plan is our primary planning document, which outlines our purpose, strategy, performance measures, key activities and capabilities over the next four years. As our primary planning document, the Corporate Plan includes the full set of performance measures endorsed by the ANSTO Board. These measures build and expand on the performance measures outlined in the PBS.
Annual Report
Our Annual Report responds to certain legislative requirements regarding ANSTO’s finances, governance, performance and activities during the previous financial year. It reports against the PBS and Corporate Plan.
Portfolio Budget Statements (PBS)
Our PBS informs Parliament of the proposed allocation of resources to ANSTO. It is presented in the PBS for the Industry, Science, Energy and Resources Portfolio. Generally, only ANSTO’s most critical performance measures feature in the PBS. s. 35 PGPA Act
s. 46 PGPA Act
s. 36 PGPA Act and Appropriations Bills (No. 1 and No. 2)
3.6.1
Planning and measuring performance
Our integrated business planning (IBP) process provides an integrated framework for ANSTO employees to manage the operations of the organisation so as to ensure delivery on our purpose and strategy within this Corporate Plan. Our commitment to customers, partners and stakeholders remains at the forefront of our planning activities.
Divisional plans and tactical implementations provide the foundation for the performance measures and key activities found within each strategic objective. Each of these performance measures and key activities are endorsed by our Group Executives. ANSTO’s PBS for 2022–2023 contain ANSTO’s most critical performance measures.
The IBP process provides monthly check-ins on performance in alignment with our strategy through measurement against our performance measures, rolling-24 months and forecasted projections.
ANSTO’s planning cycle responds to the requirements of the PGPA Act and has two cycles: planning and forecasting; and reporting and performance. Planning and forecasting
ANSTO Act
ANSTO Portfolio Budget Statement
ANSTO Corporate Plan
ANSTO Strategy
Divisional Strategies
Divisional Plans and Tactical Implementations Reporting and performance
ANSTO Annual Report
Australian Government mid-year economic and fiscal outlook
Divisional Performance Reports
Rolling Performance Reviews
4
Our operating environment
National factors
Ministerial expectations
ANSTO is an agency within the Industry, Sciences and Resources portfolio. The Minister responsible for ANSTO is the Hon Ed Husic MP, Minister for Industry and Science. On 13 February 2020, the then Minister for Industry, Science and Technology, the Hon Karen Andrews MP, provided ANSTO with a Statement of Expectations. This Statement outlines the Australian Government’s expectations of ANSTO, including the important contributions that ANSTO can make to national priorities and supporting the health of Australians through nuclear medicine production.
COVID-19 pandemic
As the COVID-19 pandemic continues, it has affected the way in which we work and operate. ANSTO has worked closely with international partners and airlines to produce and deliver crucial nuclear medicines in Australia in a timely manner. We continue to work closely with our domestic nuclear community to resolve supply restrictions by allocating available medicines to where they are needed most.
A visual replication of the COVID-19 virus.
ANSTO’S RESPONSE
ANSTO is committed to ensuring that its strategy is aligned with the Statement of Expectations and responds to national priorities. ANSTO will ensure that it continues to work in close partnership with its responsible Minister, the Hon Ed Husic MP and the Department of Industry, Science and Resources (DISR).
ANSTO is committed to supporting the health and wellbeing of our people, partners, customers and communities, and will continue to follow government advice in response to the COVID-19 pandemic. The challenges COVID-19 have presented are unmatched. ANSTO has worked through the COVID-19 challenges to ensure safe, secure and sustainable operation of our infrastructure as well as to ensure the reliable supply of radioisotopes and nuclear medicines for Australia. This was achieved despite significant interruptions in the domestic and international supply chain. We continue to work to establish more resilient and sustainable external supply chains. This is complemented by initiatives to strengthen manufacturing capabilities, facility operations and supply to customers.
We remain agile in reacting to the dynamic nature of this world and our staff have adopted hybrid ways of working, while remaining connected so as to deliver innovative and sustainable solutions. Over the next four years, our business resilience framework will safeguard nuclear medicine production in response to any major disruption of products and services. 4.1.3
4.1.4
AUKUS
The new trilateral security partnership between Australia, the UK and the US (AUKUS) is a historically significant development for nuclear science and technology in Australia. The announcement of at least eight nuclear-powered submarines intended to be built in South Australia has been welcomed by the manufacturing and university sectors as a positive development.
Building communities
ANSTO’s Lucas Heights is located in Southern Sydney, New South Wales and is one of the Sutherland Shire’s major employers and economic hubs. Over one-third of ANSTO’s workforce resides in the Sutherland Shire while approximately 200 staff work in ANSTO’s Clayton campus in Melbourne’s south-east, which is home to the Australian Synchrotron. At both sites there is significant community engagement with local schools through STEM education, as well as local business groups and community groups through site visits and event sponsorship. During the continued COVID-19 pandemic, many of our in-person community engagement activities have been disrupted.
4.1.5
Radioactive waste management
The establishment of the NRWMF for the disposal of low-level radioactive waste and the interim storage of intermediate-level waste is critically important for ANSTO and Australia.
ANSTO’S RESPONSE
As the centre of Australia’s nuclear research and technology capabilities, ANSTO will support the Australian Government in building the capability to deliver on AUKUS. ANSTO will work with the Nuclear-powered Submarine Taskforce to determine the optimal pathway for the delivery of a nuclear-powered submarine capability for Australia. This will involve working with the UK and the US to intensively examine the requirements that underpin nuclear stewardship, with a specific focus on safety, training, operation, maintenance, disposal and environmental protection.
We facilitate knowledge sharing through our various education and outreach programs, connecting ANSTO with Australia. We will continue to find new ways to engage with our local communities and ultimately, Australia. Through our Innovate Reconciliation Action Plan, ANSTO will also support and conduct research in recognition of the great antiquity and significance of Aboriginal cultural heritage. We will continue our work to achieve synergies between traditional Aboriginal knowledge and current scientific and technological practice.
ANSTO will continue to support the government in the establishment of the NRWMF through the provision of expert advice and technical support. The development of this facility will significantly influence ANSTO’s financial planning and decision-making in relation to the management of its radioactive waste holdings, conditioning and decommissioning plans, and the potential need for any additional temporary storage at its Sydney campus.
A concept image of the proposed NRWMF.
4.1.6
Regulatory environment
ANSTO operates within a complex and highly-regulated business environment with varying degrees of accountability to more than 30 regulators across international, federal and state levels. In recognition of this complexity, we have developed a range of strategies, policies and systems that ensure compliance with relevant laws and regulations.
ANSTO’s main regulators include:
. Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)
. Australian Safeguards and Non-Proliferation Office (ASNO)
. Comcare
. Therapeutic Goods Administration (TGA)
4.1.7
Financial environment
ANSTO relies on a combination of government appropriations, grants and commercial revenue to finance our operations. The 2022–23 Australian Budget delivered $289.8 million to support ANSTO’s achievement of its goals and objectives, in addition to the $121.7 million forecast for our own source revenue, primarily from the sale of nuclear medicine.
The 2022–23 Australian Budget also contained $43.2 million to support capital programs, primarily relating to the production of nuclear medicine
4.1.8
COVID-19 research and population health
Australia’s nuclear science capabilities at ANSTO, which represent a significant national asset, have been central to the fight against COVID-19. Our team of scientists are fast-tracking support for researchers from around the globe, who are busy working on new treatments and vaccines. To date, almost 200 COVID-19 experiments have been supported using ANSTO’s infrastructure, enabling researchers to understand how immune cells interact with the virus, how the Spike protein infects human cells and how long-term post-COVID effects occur. This research is vital to development of efficient treatments for the illness.
ANSTO’S RESPONSE
We will continue to develop and improve our compliance framework and activities over the next four years.
Achieving a sustainable operating budget remains a challenge that is being impacted by both external and internal factors. As has been the case for many organisations, the 2022 operating environment continues to be challenging, with the COVID-19 pandemic significantly reducing the returns from ANSTO’s commercial revenue streams. That decrease has also been exacerbated by nuclear medicine supply disruptions, which have reduced export income and required expensive imports so as to meet domestic needs. ANSTO is responding to these challenges and we continue to identify opportunities for commercial revenue.
By building on our synergistic partnerships and collaborations to drive insight and innovation, ANSTO will continue to facilitate the development of novel and effective diagnostics, treatments for cancer, chronic illnesses and neurodegenerative disease, among others, for the benefit of Australia. 4.2
4.2.1
Global factors
Geographical factors
Australia’s climate is changing with a prediction from very high to medium confidence that we will see warmer temperatures, reduced precipitation and increased risk of drought. A greater frequency of extreme temperature and rainfall events, more frequent and intense fires, and susceptibility to sea-level rise have also been suggested. The world’s climate crisis continues to highlight the need for low-carbon energy generation technologies.
4.2.2
4.2.3
4.2.4
Global supply chains
Our commercial activities operate within globally interconnected, complex supply chains. As our facilities have the capacity to produce up to 25 per cent of global needs for Mo-99, it is critical that we deliver our products to our customers. During the COVID-19 pandemic, we faced significant impact across the nuclear medicine supply chain throughout 2020 and 2021, causing disruption to ANSTO’s international partnerships. A significant reduction in international flights and border closures affected both ANSTO’s ability to receive and supply product in Australia and its ability to supply international customers.
Peaceful use of nuclear science and technology remains an important pillar both for global socioeconomic development and for Australia’s commitment to the global non-proliferation regime. In direct support of the UN Sustainable Development Goals, nuclear science and technology plays a key role in supporting development in areas such human health, agriculture, environmental management, and energy and industry.
Australia, through ANSTO, has a de facto permanent seat on the IAEA Board of Governors, which demonstrates Australia’s position as the most advanced nuclear country in the region. This in turn allows Australia to exert strong policy influence in terms of international safeguards, nuclear safety and security.
Geopolitical factors
Looking to the decade ahead, technological change, challenges to globalisation and the rules-based international order, continued economic dynamism and growth in Asia, and shifts in strategic power both regionally and globally, are among the significant trends shaping our world. Some of these developments challenge Australian interests. It is essential for Australia to continue to reform our economy, boost our competitiveness and resilience, and invest in the other domestic foundations of our national strength.
ANSTO’S RESPONSE
Understanding past climate variability puts modern trends into context and helps improve the accuracy and certainty of future predictions so as to ensure Australia’s future environmental, economic and social prosperity. ANSTO’s inter-disciplinary research uses nuclear techniques and focuses on water resource sustainability, climate variability, ocean circulation and the global carbon cycle. Through this research ANSTO seeks to further understand and prepare for future environmental challenges.
We will continue to work to establish more resilient and sustainable external supply chains. This will be complemented by initiatives to strengthen manufacturing capabilities, facility operations and supply to customers.
Through key nuclear fora including the IAEA, the RCA and the FNCA, we will continue to actively support these objectives.
ANSTO continues to advance Australia’s national interests and the government’s international engagement priorities. Over the coming years, technological change, challenges to globalisation, and shifts in strategic power both regionally and globally will undoubtedly continue. ANSTO is cognisant that these developments will shape Australia’s interests, and stands ready to assist government in executing its international engagement priorities and foreign policy objectives.
ANSTO is globally connected
The Australian Institute of Nuclear Science and Engineering (AINSE) is the key link between Australasian universities and ANSTO’s landmark infrastructure. This partnership is integral to bolstering Australia’s capabilities in STEM, in particular, in nuclear science and engineering. This creates and sustains partnerships with early and mid-career researchers, supports the development of ANSTO’s Innovation Precinct, and connects us to nearly every university in Australia and New Zealand. These partnerships lead to well-connected, versatile engineers and scientists, many of whom develop careers in industry and innovation. Our wide-ranging links to world-renowned precincts such as GIANT in France and CERN in Switzerland that have attracted over 30 start-ups to establish their businesses at ANSTO. It is our mission to support these start-ups in the commercialisation of their products and to help them grow into larger enterprises. These strong collaborative partnerships allow ANSTO to deliver knowledge, value, and trust in areas of nuclear science, technology, and engineering for the benefit of Australia.
AOFSSR
Asia Oceania Forum for Synchrotron Radiation
5
Our capabilities
ANSTO continues to maintain its infrastructure, products and services well into the foreseeable future, including its nuclear medicine manufacturing capabilities. We are also expanding and enhancing capability to advance national interest. This includes prioritisation of building a nuclear workforce for the future, expansion of our capability within the space field, and nuclear stewardship to support the trilateral AUKUS security partnership.
Our key capabilities are underpinned by:
ANSTO’s science and research infrastructure Enabling functions and services ANSTO’s research focus areas
Our capabilities in terms of Australia’s national science and research priorities include:
Exploiting nuclear science and technology and operation of landmark infrastructure Critical and essential products and services for Australia
1. radiopharmaceuticals and radioisotopes – diagnostics, therapeutics, theranostics
2. knowledge incubation and collaboration
3. detection and imaging
4. minerals and metals
5. nuclear forensics
6. irradiation services
7. radiation services
8. nuclear waste solutions
9. advanced manufacturing
10. national space payload testing
11. molecular deuteration
Specialised nuclear advice
1. National Radioactive Waste
Management Facility
2. Australian Government –policy-making, nuclear international dialogue
3. AUKUS – trilateral security partnership
Education and training
1. radiological safety
2. Nuclear Safety Technician Development Program
6
Governance and risk management
The risk factors outlined below provide an overview of our key strategic risks within the context of our strategy and operating environment. These risks influence the delivery of our strategic objectives and purpose.
Oversight of risk management
The Board retains overall accountability for the application and integrity of our systems of risk and control. Our Group Executives are accountable to the Board and are responsible for implementing, monitoring and continuously improving these risk management systems, and their integration into the day-to-day activities of the organisation.
Board-level Risk governance and oversight
The ANSTO Board retains overall accountability for the governance of risk. The Risk & Audit Committee is appropriately mandated to assist the Board in giving effect to its accountability. The Board receives regular updates via the Risk & Audit Committee on key risk factors and ANSTO’s most significant risks and plays a key role in ensuring appropriate responses to these risks.
The Board delegates responsibility to implement and execute effective risk management to the Chief Executive Officer (CEO) and the Executive Standing Committee (ESC).
Group Executives, as members of the ESC, are accountable for management of risks within their areas of responsibility, with delegated responsibility and ownership of their respective business areas. Board
Risk & Audit Committee
Management-level Risk governance and oversight CEO and ESC
ESC Sub-Committees
Group Executives
Line Managers
Our Enterprise Risk Management (ERM) process
Our strategic risks are identified in consideration of our strategy and ever-changing operating environment. We continue to ensure that we strengthen the link between our strategy and strategic risks by applying our ERM process in the context of our key business imperatives, which provide the basis for our strategic risks. We continue to focus our risk management process on ensuring the adequacy, appropriateness and effectiveness of our key responses to prevent and mitigate potential significant business impacts and to ensure delivery on our strategy.
Strategic risk informed by:
Strategy, internal and external operating context and key business imperatives
Key business imperatives:
Research and research infrastructure, commercial activities and expert advice
Enterprise Risk Management Process
Identifying and reviewing strategic risks
Our key business imperatives, aligned with our strategy, guide and inform our strategic risks. We regularly review our strategic risks with due consideration of a dynamic internal and external operating environment. We benchmark our strategic risks against available global, industry and peer company risk views.
Assessing, managing and responding to strategic risks
We assess and understand the potential impact of our strategic risks in relation to ANSTO’s risk appetite and tolerance levels. We understand our capability to respond to our strategic risks by identifying and regularly reviewing the appropriateness and effectiveness of our key responses.
Our risk management process is iterative and applied in a dynamic operating context
Reporting on strategic risks
We report on our strategic risks to the relevant governance and oversight structures. We communicate and report significant risks to external stakeholders in accordance with statutory and regulatory requirements.
Risk management governance and assurance
We have governance and oversight structures at Board and management level and combined assurance arrangements to provide assurance on our strategic risks and risk management processes in line with a five lines of defence model.
Applying our ERM process to identify, assess, manage, govern, assure and report on our strategic risks, and respond to increased and emerging risks being faced in the short, medium and long term
Strategic risks
RISK THEMES AND FACTORS
Financial
. Fluctuations in own source revenue and exchange rates may adversely affect our financial condition.
. We may not achieve our cash conservation targets. Management has reviewed all aspects of operational expenditure to identify cost reduction options, with a view to achieving a sustainable operating budget from FY23 and beyond. Exploring and pursuing viable revenue generating opportunities.
Capital expenditure/ investments
. Our major projects are subject to schedule delays and cost overruns, and we may face material changes in market conditions or other business assumptions which could have a negative effect on the viability and profitability of our projects.
COVID-19
. COVID-19 may adversely affect our workforce, impact business continuity, the delivery of our major projects and our financial condition. We continue to prioritise the health and safety of our workforce and contractors while ensuring that effective business continuity plans are in place to maintain operations and meet the needs of our customers.
In 2020, we launched an integrated response to COVID-19 that prioritised activities to ensure the stability and safety of our operational facilities, the continuity of service providers and secure working from home arrangements. We established an organisation-wide COVID-19 response team which was mandated to oversee and coordinate our various undertakings in support of our stakeholders.
Safety and operations
. Our operations are subject to operating risks (e.g. accidents resulting in injury or the loss of life or property; environmental incidents; mechanical or design failures), which could result in significant operational impacts (e.g. inability to supply Mo-99 and/ or medical isotope generators), regulatory non-compliance and legal claims for compensation. All operations are underpinned by a comprehensive WHS management system that is accredited to ISO 45001. We embed subject matter experts (SMEs) at the design phase of projects. SMEs support ANSTO activities through a prioritised approach in line with our ANSTO strategy. There is an assurance process involving relevant SMEs for identified high-risk activities. An ongoing program of works addresses legacy hazards including asbestos and electrical hazards.
A deep dive safety culture audit process has been developed that meets international best practice and is implemented across site.
KEY RESPONSES
Management has established a Capital Committee and an ANSTO Capital Program Management Office.
RISK THEMES AND FACTORS
Legal, regulatory and governance
. We are subject to the legal risks associated with non-performance in terms of commercial, research, procurement and other contracts.
. Our operations, particularly those involving radioactive and hazardous materials and information, are subject to extensive regulatory requirements, increasing the risk of non-compliance.
. Our operations involve the handling, transportation and disposal of radioactive and hazardous materials. This could result in damage to property, the environment or personal injuries, and substantial civil liability.
. Changes in legal and regulatory requirements, and inefficient compliance processes, could adversely affect our operations.
. Actual or alleged non-compliance with laws could result in criminal or civil sanctions and could harm our reputation. Misconduct, fraud or other improper activities by one or more of our employees or partners, as well as our failure to comply with applicable laws and regulations, could have a negative impact on our business, reputation and workplace.
. We rely on intellectual property (IP) laws and legal agreements to protect our IP. We also rely on the IP we license from third parties. Our failure to protect our IP rights, our infringement or misuse of third-party IP or our inability to obtain or renew licences to use the IP of third parties, could adversely affect our operations.
. In order to demonstrate performance and to ensure efficient and effective compliance and decision making, we require robust, consistent, effective and sustainable information and data management practices and systems. We maintain enhanced second line regulatory and compliance functions and framework.
We engage in refreshment and redevelopment of our compliance register and monitoring. Our information management framework, rules and requirements are in development – including requirements for file development and management. Simplification and increased effectiveness of the governance framework is used to support clearer and more effective decision making including, but not limited in relation to, the risk factors and compliance/policy requirements.
Geopolitical
. Country-specific risks relating to the countries we are dealing with could have a negative impact on our operations and financial condition. ANSTO continually monitors for international risks to, and opportunities for, its operations and business lines. ANSTO is engaging with Australian Government central departments and agencies regarding the risks and opportunities and is following government policies in its international dealings.
