A public entity board must comply with statutory obligations under the legislation that affects it, relevant government policies and ministerial directions.
A board should also develop and approve a risk management plan suited to the size and needs of the public entity and its risk profile. It must inform the responsible minister of major risks to the public entity and the applicable risk management procedures in place to mitigate them.
A board and directors need to have their effectiveness assessed at least annually. The assessment identifies areas for improvement and provides an opportunity for further director development and/or board renewal. Circumstances can also change such that new board capabilities – or greater diversity – are needed for the future.