Legal risk arises from non-compliance with laws, regulations or market practices, or from invalid, void, contestable or terminated contracts and decisions, or inadequate documentation.
The Ministry’s directive sets the principles for managing legal risk. The State Treasury reports on legal risk, maintains internal guidelines, monitors the legal environment and responds to changes as needed.
Legal risk management aims to minimise risks, ensure compliance and promote the use of standard agreements and the State’s model agreements. Staff awareness of relevant legislation, regulations and market practices is also maintained.