Governance Institute welcomes aged care royal commission
Governance Institute of Australia welcomes the aged care royal commission as issues — non-compliance and care failures for our most vulnerable — unearthed by ABC’s Four Corners this week could continue as demographic trends place even more pressure on the sector’s affordability and sustainability.
‘Similar to the learnings from the banking royal commission, aged care providers need to put the customer first and ensure they find the right balance between societal purpose and sustainability,’ says Acting Chief Executive Meegan George.
‘The aged care sector in recent years has experienced unprecedented pressure to evolve to meet the needs of an increasing number of people who are living longer thanks to improvements in health care,’ added Ms George.
Risk management frameworks critical for future of aged care providers
Ms George believes that as the aged care sector grapples to meet the pressures from increased and changing demand, boards of aged care providers will be subject to increased scrutiny, requiring a broadening of risk definitions beyond those with a financial focus.
‘APRA’s Prudential Inquiry into the Commonwealth Bank of Australia emphasised the importance of identifying and managing non-financial risks to include areas such as operational risks, conduct and reputational risks, as well as risks arising from conflicts of interest”, Ms George said.
‘It also called for CBA to inject into its DNA the question “Should we?” over the ‘Can we?’ question when assessing dealings and decisions regarding customers, across all levels of an organisation — from the board to the coal face,’ she continued.
‘We believe that an aged care royal commission is likely to identify similar cultural and governance issues and that boards of aged care providers must ensure they are capable of making informed and effective decisions,’ Ms George said.
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