Typical high risk areas for conflict of interest

Being aware of high risk areas for conflict of interest can help you to:

• avoid conflicts of interest
• identify a conflict if one occurs.

Your organisation’s own high risk areas

Check to see if your organisation has identified its high risk areas for conflict of interest and advised its employees of these in its policy or guidance.

Typical risk factors

The risk of having a conflict of interest depends on a mix of factors such as:

• your organisation’s functions and your work duties. In particular, if you have the power to make or influence decisions that can benefit others.
• the operating environment. For example, working alone, in an isolated community or with vulnerable stakeholders.
• private interests. For example, your private interests if they may conflict with your work duties.

Examples of typical high risk areas

Below are some examples of typical high risk areas for conflict of interest. This information can:

• help your organisation to identify its areas of high risk for conflict of interest
• help you to pinpoint the particular areas of high risk that apply to you.

For easier reading, the examples are grouped by risk factors.

If any of the examples apply to you, take extra care in those areas to identify if any conflicts exist.

• Open allClose all

• Risk factor: Organisation’s functions and your work duties

  The risk of a conflict of interest is typically higher if you’re involved in the duties below.

  If a conflict of interest arises, declare it to your manager, who will develop a conflict of interest management plan in consultation with you. For details see step 2 and step 3.

  Allocating goods, equipment, services or funds

  Allocating or providing sought-after goods, equipment, services or funds. For example:

  • grants of public funds
  • subsidies, financial assistance, concessions or other relief to those in need
  • services, equipment or goods where demand frequently exceeds supply
  • services or advice in a specialist area
  • individual case management.

  Confidential information

  Collecting, handling or storing confidential information.

  Discretionary powers

  Making binding decisions in which you exercise discretionary powers. For example:

  • decisions about planning and development applications or zoning
  • determinations or judgments about individuals or disputes.

  Procurement, tendering and contracts

  Undertaking work duties in relation to:

  • procurement of goods or services
  • allocation of contracts under the tender threshold
  • contract tendering, evaluation, selection and management.

  For more information see:

  • your organisation’s procurement policy
  • if your organisation is part of the public service (a department, administrative office or the VPSC) see our guidance on VPS procurement and conflict of interest. This particular guidance does not apply to the broader public sector, such as public entities.

  Public assets and equipment

  Decisions about:

  • public assets – their disposal or sale
  • public assets – purchasing or leasing
  • resources and equipment – controlling or storing resources or equipment that could be used for private gain, such as vehicles, tools or office equipment.

  Recruitment and selection

  Recruitment and selection, for example, as a member of a selection panel.

  For details, see your organisation’s recruitment and selection policy.

  Regulatory functions

  A regulatory role, for example:

  • issue or review fines or other sanctions
  • issue qualifications or licenses
  • inspect, test, regulate or monitor standards, businesses, equipment or premises.

  Sponsorship

  Allocating or accepting sponsorship.

• Risk factor: The operating environment

  The risk of a conflict of interest is typically higher in certain operating environments, such as those below.

  If a conflict of interest arises, declare it to your manager, who will develop a conflict of interest management plan in consultation with you.

  For details see step 2 and step 3.

  Working situation

  Working situations such as:

  • operating in an isolated or small community
  • working alone with clients or providers
  • working with vulnerable stakeholders
  • regular contact with high-risk industries or individuals. For example, if your organisation is involved in the gambling or liquor industries.
  • working on a private-public partnership project.

  Gifts, benefits and hospitality

  If as a result of your work role you sometimes receive or make offers of gifts, benefits and hospitality

  For more information see your organisation’s gifts, benefits and hospitality policy and our guidance on this topic.

• Risk factor: Private interests that are typically high risk

  The risk of a conflict of interest arising from your private interests will vary depending on factors such as:

  • your role in the organisation
  • the nature of your private interests.

  If a conflict of interest arises, declare it to your manager. They will develop a conflict of interest management plan in consultation with you. For details see step 2 and step 3.

  Examples of high risk private interests

  Below are some examples of private interests that are typically high risk for conflict of interest.

  Consensual personal relationships

  Consensual personal relationships between employees of the same organisation are typically high risk and in some circumstances must be declared.

  If you are in or considering entering into a consensual personal relationship we recommend that you read our guidance on this topic.

  Strict rules apply as to when the relationship must be declared. Check your organisation’s policy. It may have stricter requirements than in our guidance.

  Declarable associations

  A current or recent association with a person, group or organisation that you are aware or should reasonably suspect of being engaged in serious unlawful activity, now or in the past. The association is declarable if a conflict of interest exists.

  If you have a relationship of this type, we recommend you read our guidance on this topic.

  Strict rules apply as to when the relationship must be declared. Check your organisation’s policy. It may have stricter requirements than in our guidance.

  Financial interests that may be affected

  Financial interests that may be affected.

  For example, if you or a family member owns shares, it would be a conflict of interest for you to be involved in any decision made by your organisation that could change the shares’ value.

  Other high risk examples include:

  • secondary work or commercial interests. For details see your organisation’s outside employment policy.
  • the promise or prospect of future employment with a person or organisation you interact with as part of your public duties.

Variable risk levels: For example duty, loyalty or bias

If you have a duty or loyalty to another organisation, group, person or cause, there is no typical risk level of a conflict of interest. The risk level will be determined by factors such as:

• your role in your organisation
• the nature and level of your duty, loyalty or bias towards the other organisation, group, person or cause.

If a conflict of interest does arise you must declare the interest to your manager, who will develop a conflict of interest management plan in consultation with you. For details see step 2 and step 3.

Read the guidance on any of these topics that affect you:

• Duty or loyalty to another organisation or group
• Former registered lobbyist or government affairs director as an employee.