Provider risk framework

​​We have identified a number of risks to consider when registering and monitoring education and training providers.

This framework uses a series of indicators to help us to determine an appropriate level of oversight for each registered provider.

Providers can use the framework to consider their own circumstances against each risk.

Additional factors may be considered at our discretion. The provider risk framework does not apply to 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 required

Indicators 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 international exchange students, delivers courses in high risk industries, or oversees homestay accommodation.


 

​​Risk: Students interests

Education and training provider fails to meet the needs of students.​

Indicators that a lower level of​ oversight is required

Indicators that an increased level of oversight is required​

  • 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 required

Indicators 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.


 

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 required

Indicators 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.​