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Provider Risk Framework

The risks considered by the VRQA when registering and monitoring education and training providers are outlined below.

The indicators against each risk reflect some of the areas that the VRQA will consider when determining the level of oversight appropriate for each provider. The risk framework also assists education and training providers to consider their own circumstances against each of the identified risks.

The VRQA will consider additional factors at its discretion. 

Please note that the risk framework does not apply for the regulation of apprenticeships and traineeships.

Risk: Student Welfare

The welfare of a student is compromised while enrolled with the provider.

Indicators that a lower level of​ oversight is requiredIndicators that an increased level of oversight is required
  • A commitment to student welfare underpins all the policies and activities of the provider.
  • Comprehensive student welfare policies and procedures are regularly reviewed and communicated to the provider community.
  • Student welfare is monitored and intervention strategies triggered as required.
  • Support services are accessible to all students.                                                                                                                                                 
  • Provider lacks awareness of its student welfare responsibilities.
  • Student welfare policies and procedures are not in place, lack detail, or are not regularly reviewed.
  • Intervention strategies do not exist, or are not effectively implemented.
  • Provider delivers to overseas exchange students, delivers courses in high risk industries, or oversees homestay accommodation.

  

Risk: Students’ Interests

Education and training provided fails to meet the needs of students.

Indicators that a lower level of oversight is requiredIndicators that an increased level of oversight is required
  • A comprehensive assessment to determine student suitability for the course/provider environment is performed prior to enrolment.
  • Feedback loop for complaints, student and stakeholders surveys etc. is established and necessary actions are implemented.
  • Student achievement is consistent with or better than relevant benchmarks.
  • Completion/progression rates are above standard for provider type.
  • No formal process exists to determine student suitability for the course/provider environment prior to enrolment.
  • Facilities and materials are not sufficient or appropriate to enable effective learning.
  • Student achievement is below relevant benchmarks.
  • Completion/progression rates are below standard for provider type.
  • Complaints relating to the same topic are received on an ongoing basis.

 

Risk: Governance

Governance structure fails to underpin effective operations and successful management of the provider.

Indicators that a lower level of oversight is requiredIndicators that an increased level of oversight is required
  • Governing body and senior management demonstrate a commitment to integrity, accountability and ethics.
  • Comprehensive business planning documents with clear assignment of ownership and accountability.
  • Low turnover of governing body members, senior staff and management team. 

                                                            

  • Governing body and senior management includes a large number of members with limited experience with the provider.
  • Lack of business planning documents or documents exist with weak ownership and accountability.
  • Recruitment processes are not rigorous and  staff training and development lacks focus.     

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Risk: Financial Viability

Financial failure of a provider leading to inability to deliver education/training.

Indicators that a lower level of oversight is required   Indicators that an increased level of oversight is required
  • Unqualified financial statements.
  • Strong financial performance and ratios.
  • Consistent student enrolment figures.
  • Enrolment figures meet or exceed minimum threshold levels. 
  • Low reliance on government funding. 
  • Qualified financial statements.
  • Weak financial performance and ratios.
  • Fluctuating student enrolment figures.
  • Enrolment figures below minimum threshold levels.           
  • High reliance on government funding.

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Risk: Compliance

Insufficient processes in place to ensure compliance with regulations and standards.

Indicators that a ​lower level of oversight is requiredIndicators that an increased ​level of oversight is required
  •   Provider has process to recognise and monitor compliance.
  • Previous audits found provider is compliant.
  • No concerns or only minor concerns raised by regulatory bodies in relation to provider
  • Previous approvals granted with no specific conditions attached.
  • No process in place for provider to recognise or monitor compliance.
  • Previous audits identified areas of non-compliance.
  • Significant concerns raised by regulatory bodies in relation to provider.
  • Previous approvals had specific conditions attached.

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