rmia annual report 2019 · online based events, and have held in may a virtual risk cuppa event to...

Annual Report 2019

2

Directory

Board of Directors

Director, President & Chair Mr Anthony Ventura

Director & Company Secretary Ms Belinda Olejniczak

Finance Director Mr Anthony (Tony) Dudley

Director Mr Stephen Higginson

Director Mr Anu Kukar

Director Mr Simon Levy

Director Mr Tim Markey

Director Mr Jason Smith

Independent Director Ms Vicki Mullen

Independent Director Ms Robin Moore

Chapter Presidents

Australian Capital Territory Ms Dannya Hu

New South Wales Ms Nafeesa Aziz

Queensland Ms Donna Spethman

South Australia & Northern Territory Ms Elise Nisbet

Tasmania vacant

Victoria Mr Daniel Atkin

Western Australia Mr Ben Johnson

New Zealand vacant

South East Asia vacant - to be appointed Jul-Dec 2020

Committee Chairs

Conference Committee Mr Anthony Ventura

Finance Audit & Risk Committee Mr Tony Dudley

Professional Development Committee Mr Mark Ryan

Head Office

Chief Executive Officer Mr Scott Ryrie (resigned March 2019)

Mr Andrew Lynch (Acting to 10 October 2019)

Current Chief Executive Officer Mr Jason Smith (Acting - current)

Marketing Manager Mr Andrew Lynch (resigned Oct 2019)

Membership Manager Ms Belinda Millard (resigned Nov 2019)

Current Membership Services Manager Ms Julia Oliver

Events & Marketing Coordinator Ms Louise Rogers

Events & Business Development Manager Ms Jessica Ginn

Events & Operations Coordinator Ms Carlissa Eves (resigned Dec 2019)

Research Coordinator Ms Jessica Williams (resigned Feb 2019)

3

Table of Contents

Directory 2

Purpose & Values 4

President’s Report 5

Chapter Reports 9

Financial Report 12

Director’s Report 12

Auditor’s Independence Declaration 18

Statement of Profit or Loss and Other Comprehensive Income 19

Statement of Financial Position 20

Statement of Changes in Equity 21

Statement of Cash Flows 22

Notes to the Financial Statements 23

Director’s Declaration 40

Independent Auditor’s Report 41

4

Purpose & Values

Our Purpose

RMIA’s purpose is to promote recognition and

reward for our members and deliver:

• Recognised risk management certifications

• Education and professional development to

facilitate collaboration within the global risk

management communities

• Advocate and influence the advancement of

the risk management profession

Our Vision

To ensure our members are recognised as the best in

the risk industry and are fulfilling leadership roles at

all levels across the organisations they serve.

About the RMIA

The Risk Management Institute of Australasia Limited

(RMIA) is the professional institution and industry

association for Risk Managers in the Asia Pacific

region. RMIA members are involved in every sector of

the community and economy.

The RMIA, from its predecessor organisations to this

day has over 30 years’ experience in representing

the practice of risk management. We facilitate

linkages between Members and offer continuing

professional development opportunities via our

Annual Conference, Risk Odyssey Conferences, Best

Practice Guides, Special Interest Groups, Chapter

Networking Events and Education Programs.

Our Values

The basic fundamental of our organisation is to

improve the value proposition of risk management by

setting a new benchmark for the profession and high-

quality outputs through education and networking

opportunities, to ensure our members’ ongoing

development as leading risk professionals.

Our aspiration as the leading risk management

professional body is by 2020, to significantly impact

the community to improve the quality and

understanding of risk management in our region and

thereby increase the influence of risk management in

everyday decision-making whether it be in

government, business or in the community. Through

our profession’s contribution to better decisions and

outcomes, we ensure success and recognition of our

members in the greater community.

Our Values guide our decisions and prioritise our

efforts:

• Inclusive - Welcoming and accessible to the

entire risk community

• Informed - Understand expectations and needs

relevant to our members and stakeholders

• Collaborative - Communicate and engage as

one team, honestly, ethically and with care

for each other

• Progressive - Forward-thinking and innovative

5

President’s ReportOver the last year the Board and Management have

worked together to refine our strategy and

supporting governance construct. This is to ensure

there is alignment in our aspirations and goals for our

members so as to safeguard the long-term financial

strength of the RMIA. As always, I am deeply grateful

for the contribution and efforts of our Board of

Directors, Chapter Presidents and their State and

Territory Committees, our Board Sub-Committees

and National Office over the last 12 months. I would

also like to acknowledge, the support and

contribution of all our RMIA members.

The past year to date, reflects an exciting period of

continued transformation and growth for RMIA

including the following key achievements:

• Leveraged the newfound capabilities through

the 2018 investment in a CRM system, which

has streamlined for example members ability

to register for our numerous State Chapter,

and national training and education events.

• Collaborated with the Australian Institute of

Internal Auditors and the Australian Catholic

University on various events across the

country.

• Continued to leverage our strategic

partnerships with the Australian Information

Security Institute and the Australian Supply

Chain Institute.

• Secured a truly inspirational speaker for the

RMIA Keynote Tour.

• Increased the level of member outreach

through some outstanding State Chapter

events, our weekly newsletters and risk

magazine.

• Laid the foundation to aggressively build out

our professional development training offering

for members in 2020.

• Commenced the update of our Risk

Management Body of Knowledge domains to

best support our professional accreditations.

• Maintained the stable growth trajectory for

RMIA Membership.

You will see as you review this annual report, in the

last year we have accomplished many key initiatives

proposed by the Board or initiated because of input

from our Members. As also covered in the annual

report for material matters subsequent to our year

end, we dynamically pivoted the RMIA to navigate

through the continuing COVID-19 pandemic crisis and

as at the date of my report I’m pleased to note that

despite all of the difficulties faced the RMIA remains

in a sound financial position; has experienced good

growth in new memberships; adapted all of our

training courses to be offered online; and

repositioned the running of our 2020 National

Conference in an a manner that we are confident

will truly delight members later this year.

Through key Board leadership decisions, we are

working to strengthen the association and to position

RMIA as the premier risk professional industry

association in the Asia Pacific region.

RMIA Membership

I am pleased to report that the RMIA membership has

continued to increase at a healthy, steady rate

throughout 2019 and with a very positive outlook for

2020 given the growth in new members to date in

the current year. We continue to strive with our

ambitious membership plans that formed part of our

6

Risk 2020 strategy which focused on building vibrant

risk communities across our region. At the end of

2019 the Board took active steps to refocus this

strategy heading into 2020. Membership for 2019

reached 1,271, with in excess of 300 new members

attracted to the RMIA throughout the year. In 2020

we will continue to focus on the needs of our

members and develop a greater connection to the

membership. I welcome all new members to the

RMIA community and encourage you all to network,

engage and develop connections with our great

members.

Professional Development Committee

The Professional Development Committee has

overseen continued enhancement of our education

and professional development program to ensure

that we remain relevant and up to date for members

in servicing their professional development needs.

The list of Endorsed Courses available through the

RMIA continues to grow, and we have maintained a

robust process for endorsement to ensure the level

of courses are of the highest standard. Given the

current momentum, 2020 is shaping up to be a

landmark year for number and diversity of short

course offerings we will be directly offering to

members under the RMIA banner. We are very

excited about the body of work being completed by

this group and the outcomes for our members in

2020 and beyond.

RMIA Award Winners

During 2019 we again celebrated the exceptional

achievements of our membership. The 2019 RMIA

Awards were presented at the National Conference

in Melbourne and it is with great pleasure we

acknowledge our award winners:

• Risk Manager of the Year: Nafeesa Aziz

• Risk Consultant of the Year: Gavriel Schneider

• Risk Student of the Year: Olivia Johnston and

Jacky Purves

• RMIA Chapter of the Year: South Australia

Annual National Keynote Tour

On the back of the success and great feedback we

received on the 2018 Keynote Tour with Irene

Quarshie, Vice President of Global Supply Chain and

Logistics, Target Corporation USA. We followed this

up with Cheryl Sarah Bart AO. Cheryl is a Lawyer,

Company Director, and the first Australian female

and the 31st person worldwide to complete the

‘Explorer's Grand Slam’. Namely, the Seven Summits

plus skiing, unsupported, to the North Pole and the

South Pole. She completed the North Pole on 22 April

2013. Her daughter is Nikki Bart, with whom she

became part of the first mother-daughter team to

summit Mount Everest and complete the Seven

Summits. Cheryl’s story of both corporate and

mountaineering success and the importance of

proactive and thorough risk management is truly

inspirational and was well received by all of our

members during her national keynote tour. We

would like to also acknowledge the continued

support of our sponsor Swiss Re Corporate Solutions

in being able to bring these high-quality speakers to

our risk community.

Strategic Partners

In 2019 we continued our momentum and

collaboration with our business partnerships and

relationships by connecting with industry leaders.

Our Strategic partnership initiative grew to seven

Strategic Partnerships including; Pan Software

(Strategic Technology Partner/Diamond Conference

Sponsor until 2021), Swiss Re Corporate Solutions

(RMOY, Women in Risk & Keynote Tour Sponsor),

7

KPMG (Venue Partners and Conference Sponsor), SAI

Global, LexisNexis (Strategic Knowledge Partners),

The Protecht Group (Strategic Knowledge Partners

and Risk Student of the Year Sponsor), TAC, RSA,

Grosvenor Engineering and more. We are looking

forward to the opportunities of working with our

partners and continuing to expand the value for our

members through these partnerships.

RMIA 2018 Annual Conference

The Risk industry’s pinnacle event, the RMIA’s Annual

Conference & Exhibition was hosted at the Grand

Hyatt in Melbourne from the 13th to 15th of

November 2019. We were delighted to welcome

hundreds of delegates, 12 Keynote speakers, Stream

speakers 33 and 15 Panel Session Speakers. The

conference consisted of 4 rotating concurrent

streams – Integrated Risk Management, Work, Health

and Safety, Reinsurance and Insurance, Risk &

Resilience, Cyber Risk, Government, Education and

Career Development, Risk Culture, Project

management and Reputational Risk. We were proud

to partner once again with Diamond Event Sponsor

riskware.net (Pan Software), celebrating over 10

years of partnership with the RMIA, Silver Event

Sponsors – TAC, Bronze Event Sponsor – RSA &

LexisNexis. Many thanks go to our many conference

exhibitors including, The Protecht Group, ACU, Folio,

Risk Decisions, CAMMS, Sense of Security, Tickit

Systems, Rapid Global, Resolver, Sword GRC,

Privasec, Zurich, Risk Logic, and Corprofit.

We received many testimonials commending the

outstanding speakers and overall quality of the

event, such as “The quality of speakers was

excellent, and the conference provided ample

opportunities, both professionally and socially, to

network with other members.” For 2020, it has

turned into a challenging year for any organisation

looking to host a large conference. Despite this we

are pleased to announce that from the 9th to 13th of

November 2020 we will be running ‘Risk and Cyber

Week’ as our 2020 National Conference and we will

be staging it jointly with our strategic partner the

Australian Information Security Association (AISA).

Resilience the ‘New Normal’ - will be our

overarching theme for the Risk and Cyber Week

Conference where we will be holding concurrent

streams on Risk Management and Cyber Risk along

with many joint sessions being held by the RMIA and

AISA. Given our members health and safety during

this time remains our primary concern, we have

decided to host the majority of the conference

online using a leading-edge conference technology

platform which will enable a high level of dynamic

engagement between delegates, speakers, sponsors

and exhibitors. Continue to watch this space and

keep the dates in your diary!

In November 2019 the Board commenced a reset of

RMIA's strategy based upon four pillars and capability

offerings. The intent is that each pillar is to have its

own strategy and annual plan with a governance

overlay aligning with Board level committees to

oversight each pillar. In due course, the RMIA Head

Office and our internal Governance structure will be

re-aligned with four key pillars, which are

summarised as follows;

• Memberships – delivering on a membership

strategy to focus on provision of value to

existing members whilst attracting new

members to the RMIA.

• Education – enriching the depth and diversity

our educational offering available to members

and risk management professionals.

• Developing the Risk Profession - Be seen as

the leading institution in the Asia Pacific

delivering Risk Management professional

accreditation capability.

8

• Events and Sponsorships – generating a

consistent level of networking and professional

development opportunities for members

through RMIA hosted events and sponsorship

arrangements.

Our State Chapters will continue to become more

visible to ensure that everyone gets an opportunity

to embrace this great community that we have

established. Pivoting to webcasting over the past

four months for Chapter Events has actually seen a

greater cadence and a national based outreach of

events, giving members more choice and valued

development opportunities in this challenging time.

You will continue to see more events and access to

experiences aligned to member needs to enable the

expansion of our risk thinking, as we all embrace this

new normal. Financial sustainability remains a key

element of our platform and ongoing growth. The

Board has established strong business fundamentals

that enables the business to thrive in a very

challenging 2020 and beyond.

Acknowledgements and Appreciation

Each year brings its own set of challenges, but I know

that I speak for the Board when I express my

confidence in the RMIA’s ability to develop further

and continue its success. The RMIA has to date

soundly weathered the current trying environment in

2020 as we maintain a solid financial position.

Given the challenges that our organisations and

communities have faced in the past four months, risk

management professionals continue to step-up and

exhibit courageous leadership for the organisations

and communities which you support. The RMIA

continues to stand beside you in rising to this

challenge as risk management professionals and

leaders as we provide you with continuity of our

member services.

I am proud of our accomplishments in 2019 and

excited about the future. For those of you who have

tirelessly committed time and energy to the success

of this organisation - our Members, Volunteers,

Sponsors, Strategic Partners most importantly the

National Office once again, I thank you. For the

many of you who are new to RMIA, I welcome you

and I look forward to seeing you at the many risk

networking opportunities in your regions in 2019.

Anthony Ventura

RMIA President

1 July 2020

9

Chapter Reports

Australian Capital Territory Chapter

2019-20 was a unique year across all chapters

including ACT with the major challenge of COVID-19

affecting all of us in the latter half of the financial

year. We have focused on growing our Chapter

numbers this year. We ran a small event on security

risk management in early 2020 which was an

excellent networking opportunity for our members.

We also partnered with the Institute of Internal

Auditors (which grew into a national event) for an

event in June 2020 on Organisational Controls:

Intersecting Risk and Internal Audit perspectives.

This event had excellent attendance on Zoom with

over 240 attendees. We look forward to welcoming

new & existing members to future events in 2020-21!

Dannya Hu – Chapter President

New South Wales Chapter

In 2019, the NSW Chapter started the year off with a

few great events on whistleblowing risks, Risk

Management in the Australian Army and Surf Life

Saving NSW, The Women in Risk event and the Risk

Manager of the Year event with great turnouts from

members and non-members alike. Nafeesa Aziz,

Head of Caltex Safety, Risk and Compliance took

over the role of Chapter President in August

following the resignation of Gavin Pearce. In

December, the chapter ran a brainstorming session

with the NSW Chapter Committee to develop the

2020 Strategic goals. The NSW Chapter also rolled

out a survey for NSW members to share their

thoughts and ideas with the NSW Chapter Committee

on future events. The RMIA National Conference

enabled chapter presidents to meet the board and

engage in discussions about future events and

improvement opportunities that can be implemented

in the new year. We expect to further develop our

event list in 2020 to include joint events with other

industry bodies as well as other exciting risk events!

Nafeesa Aziz – Chapter President

Queensland Chapter

2019 was a mixed year for the Queensland chapter.

A successful women’s risky breakfast networking

event was held in the first quarter with over 25

women from a variety of industries in attendance.

Off the back of this event, three informal risky

women lunch events were also held to establish a

network of women in risk within the Brisbane area.

The Risk Manager of the Year tour was another

successful event attracting over 30 RMIA QLD

Chapter members. In addition to these two

successful events, smaller events were held including

risky coffee opportunities and an end of year risk

event hosted by RiskLogic. These latter events were

not as successful, and the Queensland Chapter

continues to be challenged on how to engage with its

members in the most effective way. Offering more

online opportunities for sharing knowledge and

networking will help to achieve greater success in

engaging with members.

At the end of 2019, the Queensland Chapter

committee members and President agreed to

dissolve the current committee. This decision was a

difficult one to make however due to life

commitments and the inability of committee

members to commit the time needed, it was deemed

that new committee members would need to be

found to deliver Queensland chapter objectives and

engage with chapter members in 2020. RMIA would

like to thank Committee members Allana Allman,

Laura Dalgleish and Daniel Mitchell for their

dedication to the chapter during their time on the

10

committee. I agreed to remain in the President role

as the chapter transitioned and formed a new

committee in 2020 and until a replacement for

President could be found.

Donna Spethman – Chapter President

South Australia & Northern Territory Chapter

The South Australia and Northern Territory Chapter

of the RMIA have had another strong year building a

dynamic risk community. We were both delighted

and humbled to have received back to back ‘Chapter

of the Year’ awards and were ecstatic that the work

we have been doing as a chapter was recognised yet

again. Our chapter’s future focus is to connect and

support the risk community in SA and NT. We

achieve this by making risk practical, creating

meaningful events and driving value for our

membership base.

Following a sold-out Risk Odyssey event in late May,

in July 2019, we partnered with Deloitte to host a

Risk Management Workshop ‘Risk as an enabler:

practical methodologies to implement risk

management activities’ which also sold out.

Additionally, we hosted several morning Risk Cuppas

and our end of year networking event in partnership

with KPMG.

2020 has been a challenging year for the risk

community and we had to postpone our Women in

Risk Event, Risk Roundtable and principal Risk

Odyssey events. We have been hard at work to

refocus our events and are looking to hold our virtual

morning Risk Cuppas and Risk Roundtable events in a

virtual format. The SA Chapter has also partnered

with CAMMS Group to create a Cyber Risk Webinar in

late July, which will assist risk managers to respond

to new emerging cyber threats. Whilst 2020 has

brought its challenges, it has also evidenced the

importance of the risk function, adapting to threats,

being dynamic in risk responses and building

resilience. We look forward to engaging with our

members and event delegates in new ways

throughout the coming year.

Elise Nisbet – Chapter President

Victoria Chapter

2019/20 has been a challenging but interesting year

for the Victorian Chapter and indeed the risk

management community more broadly. With our

previous Chapter President joining the RMIA Board,

the Victorian Chapter Committee saw a new

President, Vice-President and Secretary, as well as

new committee members join the team.

The second half of 2019 saw some great events

including Risk Cuppa Events, The RMIA Keynote Tour,

Our annual joint event with the Institute of Internal

Auditors – focused on becoming a trusted partner,

and a risk Happy Hour event. In early 2020 we

launched our first ever joint event with the FAIR

Institute, focusing on quantitative risk analysis in a

cyber risk context, and had another informal Risk

Cuppa event focused on climate change and bushfire

risk. With the onset of COVID-19 our ability to hold

face to face events was curtailed but we continued

to support Head Office on the promotion of national

online based events, and have held in May a virtual

Risk Cuppa event to check in with the Victorian Risk

Community.

The Victorian Chapter Committee is looking forward

to continuing to support Victorian based risk

professionals in FY21, through a mix of online and

face to face events, responding agilely to the

changing COVID-19 landscape.

Daniel Atkin – Chapter President

11

Western Australia Chapter

2019 was a year of change for the WA Chapter, as we

said goodbye to long standing Committee members,

Nenad Susic, Peter Blackmore, Wade McCullough and

Melissa Wroe. All have been pivotal in advancing the

RMIA’s reach in Western Australia and we thank

them for their efforts. In their place, we welcomed

new Committee members Ian Kneeshaw and Peter

de Bruin, who, along with existing Committee

member Phil Imlay, have brought fresh ideas and

experiences to the WA Chapter.

Our highlight for 2019 was undoubtedly our Risk

Odyssey event, which centred around the theme of

the “Social License to Operate”, at which we were

extremely fortunate to hear from the likes of Kevin

Smout (KPMG), Nicole Lockwood (Westport

Taskforce) and John Garnaut (McGrath Nicol) to

name but a few of the incredible presenters we had

on the day.

As Western Australia begins to emerge from the grips

of COVID-19, our WA Chapter Committee is working

hard to re-schedule some of the events that had

been planned for early 2020, and are looking forward

to meeting our members in person at these events in

the very near future.

Ben Johnson – Chapter President

Risk Management Institution of Australasia Limited ABN 82 106 528 509

DIRECTORS' REPORT

12

The directors present this report on Risk Management Institution of Australasia Limited (RMIA) ("the company") for the financial year ended 31 December 2019.

Directors

The names of each person who has been a director during the year are:

Anthony Ventura Robin Moore (resigned 06/02/20)

Tim Markey Simon Levy

Stephen Higginson Jason Smith

Anthony Dudley Vicki Mullen (resigned 22/5/19)

Belinda Olejniczak (appointed 22/5/19) Anu Kukar (appointed 12/11/19)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities

The Risk Management Institute of Australasia (RMIA) is the professional institution and industry association for Risk Managers in the Asia Pacific region. RMIA facilitates linkages between Members and offers continuing professional development opportunities via our annual National Conference, Risk Odyssey Conferences, Best Practice Guides, Special Interest Groups, Chapter networking events and Education programs. Key focus of activities in 2019 was building our RMIA's professional training and educational offering, increased state chapter networking events, more frequent brand and value proposition marketing through various social media channels to ensure the RMIA was able to deliver high quality professional development and educational opportunities to members. In addition, we continued to focus on ensuring as many opportunities for members to network and develop through state-based Risk Odyssey events and our flagship National Conference which was held from 13th

to 15th November 2019 in Melbourne.

Operating result and review of operations

Over the last five years, the Board has balanced the need to invest in the business to position it to provide the required services to members and also ensure the RMIA maintains a sustainable financial position. It was pleasing to have a sound profit and cashflow positive outcome for 2019, whilst being mindful that this was achieved during a challenging time for many of our members given impacts from more intense regulatory scrutiny and adverse impacts from a number of severe natural disaster events.

In 2018, the RMIA made a significant investment in purchasing a new CRM system. In the past year, this has significantly enhanced our ability to streamline the provision of services and information to members. Including our ability to communicate more consistently and effectively to members and enhance the way we support professional accreditation for members. The new CRM system has also allowed us to work more effectively with our sponsors.

In 2019 and in alignment with previous years, our Head Office team was focused on organising and delivering a range of national key events such as the National Conference, Risk Manager of the Year, Risk Student of the Year, Risk Consultant of the Year and Keynote speaker series.

The National Conference in 2019 was held in the heart of Melbourne. The conference achieved a material net profit outcome for the RMIA and this result along with sponsorship income and delegate registrations were improvements based upon the 2018 conference outcomes. Post conference surveys with attendees indicated consistent levels of satisfaction in networking opportunities, quality of speakers, exhibitor engagement and keeping up to date with key professional issues. In December 2019, the board was provided with a report on conference delivery which identified key opportunities to make ongoing improvements in the delivery of this key event for members. These opportunities are being explicitly focused upon as a part of 2020 National Conference planning.

Objectives and strategies to support the RMIA strategy

RMIA's purpose is to promote recognition and reward for our members and deliver:

• Recognised risk management certifications


DIRECTORS' REPORT

13

• Education and professional development to facilitate collaboration within the global risk management communities

• Advocate and influence the advancement of the risk management profession.

In November 2019 the Board commenced a re-set of RMIA's strategy based upon four pillars and capability offerings. The intent is that each pillar is to have its own strategy and annual plan with a governance overlay aligning with Board level committees to oversight each pillar. In due course, the RMIA Head Office structure will be re-aligned with four key pillars, which are summarised as follows;

• Memberships - development of a comprehensive membership strategy

• Educational Offering - Development of a core, unique and substantive educational offering with external RTO certification

• Developing the Risk Profession - Be seen as the leading institution in the Asia Pacific delivering Risk Management professional accreditation capability

• Events and Marketing - Development of a core capability in conference delivery and marketing.

The objective is to build out the strategy and execution plans for each of the four pillars in the early part of 2020.

The following are some of the key initiatives to support the strategies and objectives for 2020

RMIA Annual Conference – Sydney (9 -11 November)

Being hosted in Sydney this year, we expect that we will see again strong attendance numbers. The key themes for this year's conference will focus upon moving from risk transformation to optimisation; navigating an increasingly complex regulatory environment; impacts of climate change; lessons from managing through the COVID-19 pandemic.

Membership

Membership growth is a critical aspect to the RMIA and we have budgeted for a stable growth in 2020. We are driving this through greater focus on our membership value proposition; enhanced membership tiering structuring; distinct student and corporate segment strategies.

Education

We will be focusing on building on the success of the Enterprise Risk Management courses run during 2019 to offer to members a more substantive educational workshop offering. We will seek to cover more broad topic areas for our members such as risk appetite, compliance management, managing risk in projects and change, enhancing organisational risk appetite and softer leadership skills for risk managers. In 2020 the RMIA will work towards developing its own comprehensive risk management qualification.

Chapter Activities

The continued focus for 2020 is to ensure we continue to provide the opportunities for our membership and broader risk community to network and push the risk management profession forward. Our state chapters have each developed comprehensive event calendars for 2020, which also includes collaborating on events with RMIA strategic partners and providing access to some events via either live webcast or recorded webinar.

Industry Networking and developing the Risk Profession

In 2019 the RMIA forged a number of strategic partnerships with like-minded professional associations for the mutual benefit and value add to respective membership bases. In 2020 this will continue with increased conviction as we seek to forge further new strategic partnerships and business to business alliances. In 2019 work commenced with building relationships with key public sector agencies focused on risk management. In the current year, we will seek to deepen these relationships significantly with the intent to also have more extensive RMIA professional accreditations throughout these public sector agencies.


DIRECTORS' REPORT

14

Key Performance measures

The company measures its performance through the use of both quantitative and qualitative benchmarks. These benchmarks are developed in conjunction with the broader RMIA team on a year by year basis and used by the Directors to assess the financial sustainability of the company and the achievements of its short-term and long- term objectives. These key performance metrics are directly linked with the achievement of 2020 financial budget and strategy objectives and outcomes.

2020 2019 2018 Benchmark Actual Benchmark Actual

Membership services

Number of members 1271 1271 1,650 1,484

Number of members with professional certification 299 299 400 316

National Conference attendance 300 327 400 278

National Keynote events per Chapter 1 2 1 1

Financial

Proportion of funding by:

Membership subscriptions 25% 24% 21% 24%

Certification 4% 4% 5% 4%

National Conference 41% 42% 50% 40%

Events, education and other income 30% 30% 25% 32%

Information on directors and company secretaries

Anthony John Ventura BBus MRiskMgmt CPRM

President. Appointed 28 May 2013.

Anthony is an energetic and innovative manager with over 25 years' experience in risk management. Anthony has held senior management roles in both the private and public sectors. Anthony is currently Group Manager Risk at John Holland.

Stephen Higginson BA ACII

Vice President, Operations & Membership. Appointed 26 May 2015.

Stephen's career has spanned 39 years in South Africa, UK, Ireland, Asia and Australia. Stephen joined Swiss Re Corporate Solutions in 2013 and is currently driving Swiss Re Corporate Solutions' growth strategy for Australia and New Zealand from his base in Melbourne.

Anthony Gerard Dudley BA (Accounting) FCPA GAICD

Appointed 22 September 2014.

Tony has had a blend of commercial and financial expertise in the private and public sectors. Tony is currently Chief Financial Officer, Head Business Enablement for the Victorian Transport Accident Commission.

Tim Markey

Appointed 23 May 2017.

Tim is an experience quantity surveyor, qualified from Nottingham Trent University in the UK. Tim brings hands- on experience with 25 years' work in the construction industry and managing his own IT business for over 14 years in Australia. More recently, Tim has taken on a role with a global asset valuation company, specialising in the insurance sector. His core skills include business management, project management, team building and process re-engineering. He has also had experience with Public Private Partnerships (PPP) in the UK in the accommodation and aged care sector.


DIRECTORS' REPORT

15

Robin Moore BA

Appointed 20 March 2017 | Resigned 06/02/20

As a highly regard communications professional, Robin is the Head of Marketing and Communication at Chubb in Australia and New Zealand. Robin has been active across the globe in communications industry with some of his projects including rolling out a new brand arising from ACE's acquisition of Chubb in January 2016. Robin has an impressive career spanning over 16 years in corporate communications with a background in journalism.

Simon Levy BAppSci.


Simon is the Head of Risk Management Solutions Victoria and Tasmania at Marsh & McLennan Australia. A leading Governance and Operational Risk Management Professional who drives proactive risk management across complex business environments. Simon has 20 years' experience as a risk professional and has worked closely with senior executives for globally recognised brands and organisations contributing to the strategic intent by ensuring accountability for effective risk mitigation.

Jason Smith BEcon BCom MBA GAICD


Most recently Jason was the Executive General Manager, Risk Insights and Enablement at IAG. In October 2019, Jason was appointed as interim CEO for the RMIA. Jason is a commercially astute Chief Risk Officer with over 15 years of senior executive experience in leading, transforming and optimising governance, risk and compliance functions in banking and insurance. His experience includes over 10 years of working in Asia, whilst navigating complex regulatory and business operational environments. Jason has uniquely added value through focusing risk and compliance functions to deliver exceptional customer outcomes and enhance Management's brand with the board, investors and regulators. Jason has built a track record of transforming and optimising risk strategies, processes and cultures to deliver material performance improvements.

Belinda Olejniczak CPRM

Appointed 22nd May 2019

Belinda is currently the Head of Risk and Compliance for Deakin University. Belinda is a leading Governance, Risk and Assurance Executive with over twenty years of experience in global and local organisations. Belinda's career has spanned across working in Australia, New Zealand, Asia, South Africa, Europe and the UK for large ASX 100 and Fortune Global 500 listed companies, Government and Statutory Authorities in roles which included Financial Management, Business Improvement, Program and Project Management, Enterprise Risk Management, Internal Audit, Governance and Regulatory Compliance.

Anu Kukar BCom CA ICAANZ GAICD

Appointed 12th November 2019

A diverse executive with 20 years of experience in both industry and consulting, covering banking, superannuation, insurance, government and corporates. Known as an inspiring change-agent that leads programs delivering a lift in risk maturity and confidence to Boards and Regulators across Australia. Anu is a highly sought after thought-leader and educator across North America, Europe, Asia, Middle-East and Australia, helping companies and individuals with expertise in risk, internal audit, emerging technology, strategy, third-party management, governance, regulation and data.

Vicki Mullen GAICD, BAArts/Law, MLaw, GradDipLegPrac;

Appointed 14 September 2018, resigned 22 May 19

Vicki is the Vice President and Client Manager for Global Partnerships at Swiss Re. Vicki is responsible for working with governments and public sector entities in Australia, New Zealand and the Pacific, and the development of the market in this region for public sector risk transfer solutions. Vicki has experience and in- depth understanding of the general insurance market, the political and regulatory environment, media demands and the complex legal and policy issues associated with the reinsurance industry.


DIRECTORS' REPORT

16

Scott Ryrie, Company Secretary

Appointed 30 October 2018. Resigned 1 March 2019.

Belinda Olejniczak, Company Secretary

Appointed 22nd May 2019

Meetings of Directors

During the financial year 11 meetings of directors were held. Attendances by each director were as follows:

Director

Board Finance, Audit and Risk Committee

Eligible Attended Eligible Attended

Anthony Ventura 11 11 2 2

Stephen Higginson 11 7

Anthony Dudley 11 10 2 2

Tim Markey 11 7

Robin Moore 11 9

Vicki Mullen 2 2

Jason Smith 11 10

Simon Levy 11 10

Belinda Olejniczak 2 2

Anu Kukar 1 1

Finance, Audit and Risk Committee

The Finance, Audit and Risk Committee assists the directors in fulfilling their responsibilities in reviewing the financial reporting processes and outputs, financial performance and direction, capital expenditure and major commercial projects, monitoring risk management processes and status of risks, establishing and monitoring internal controls and overseeing and monitoring the external audit of the organisation.

The members of the Finance, Audit and Risk Committee are directors Anthony Dudley (Chair), Anthony Ventura, and independent members Clare Kitcher and Daniel Churilov.

Professional Development Committee

The Professional Development Committee assists the RMIA in giving independent guidance and direction around enhancing its educational offerings, strengthening our professional accreditation pathways and how best to undertake other strategies focused upon risk management being widely recognised and a professional vocation in both private and public enterprise.

The members of the Professional Development Committee are directors Anu Kukar and Jason Smith. With the independent members being Mark Ryan (Chair), Damian Wong, Graham Caddies, Ian Abrahams, Helen Bird, Gav Schneider, Anatoli Movsovitch, Sandra Alday and Gladys Rouissi.

Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a company limited by guarantee.

The company's constitution provides that each member undertakes to contribute an amount not exceeding $50 to the property of the company if the company is wound up at a time when the person is a member, or within one year of the time that person ceased to be a member. At 31 December 2019, the total amount that members of the company are liable to contribute if the company is wound up is estimated at $63,550 (2018: $74,200).


DIRECTORS’ REPORT

17

Material Events Subsequent to Financial Year End

At the time of finalising this Directors Report the COVID-19 pandemic had spread extensively throughout the world across more than 197 countries, areas or territories. This includes Australia, where the impacts are already significant on all parts of industry and commerce nationally with Australia and some states closing boarders. Further, extensive government directives for some business types to either significantly curtail the provision of services or to cease operations completely. As such, our members have experienced significant impact professionally and personally.

The Board has already convened to consider various scenarios with regard to impacts both direct and indirect on demand for and provision of member services, inclusive of financial modelling. It is impossible to predict exactly what the financial impact and outcome will be for the RMIA throughout the remainder of 2020. The financial modelling undertaken for and considered by the Board does demonstrate a reasonable capacity to absorb a material income shock and still remain cash flow positive at the end of 2020.

The RMIA is reviewing all areas and services of the business to adapt to the significant disruption confronted by the COVID-19 pandemic. Areas of focus will be to ensure that we provide ongoing opportunities for the risk community to connect with RMIA through various on-line channels. Also, for those still wanting to pursue personal developments opportunities, ensuring there are mechanisms in place to do this remotely. The Board will continue to monitor the impacts of the COVID-19 pandemic on our company continuously, diligently and with a focus on continuity of services to members.

Auditor's Independence Declaration

The auditor's independence declaration for the year ended 31 December 2019 has been received and can be found on page 7.

Signed in accordance with a resolution of the Board of Directors:

Director ..........................................................

Director ..........................................................

Dated this 16th day of April 2020

18


Auditor's Independence Declaration To the Directors of Risk Management Institution of Australasia Limited

In accordance with the requirements of section 60-40 of the Australian Charities and Not-for-profits Commission Act 2012, I declare that, to the best of my knowledge and belief, during the year ended 31 December 2019, there have been no contraventions of:

a) the auditor independence requirements as set out in the Australian Charities and Not-for-profits

Commission Act 2012 in relation to audit; and

b) any applicable code of professional conduct in relation to the audit.

Name of Firm: Thomas GLC Chartered Accountants

....................................... Name of Partner: Glenn McEwen



This statement should be read in conjunction with the accompanying notes to the financial statements.

19

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019

NOTE

2019

$

2018

$

REVENUE

Revenue and other income 2 1,190,109 1,087,796

EXPENSES

Employee benefits (359,994) (507,519)

National conference (321,980) (258,610)

National and Chapter events 3 (160,466) (161,787)

Office staff subcontracting (66,063) (74,353)

Depreciation and amortisation 3 (54,232) (29,122)

Information technology and communications (49,513) (41,840)

Audit, legal and consultancy fees (41,800) (15,055)

Travel and accommodation (15,090) (27,430)

Occupancy (8,326) (46,025)

Other expenses (33,588) (34,032)

TOTAL EXPENSES (1,111,052) (1,195,773)

PROFIT/(LOSS) BEFORE INCOME TAX

79,057

(107,977)

Income tax expense

-

-

PROFIT/(LOSS) FOR THE YEAR

79,057

(107,977)

OTHER COMPREHENSIVE INCOME FOR THE YEAR

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

79,057

(107,977)

Profit/(loss) attributable to members of the entity

79,057

(107,977)

Total comprehensive income attributable to members of the entity

79,057

(107,977)



20

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2019

NOTE

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 4 88,829 115,158

Trade and other receivables 5 67,101 14,857

Prepayments 25,062 19,058

TOTAL CURRENT ASSETS 180,992 149,073

NON-CURRENT ASSETS

Property, plant and equipment 6 12,936 19,903

Intangible assets 7 39,960 47,752

Right-of-use assets 8 15,768 -

TOTAL NON-CURRENT ASSETS 68,664 67,655

TOTAL ASSETS

249,656

216,728

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 9 104,953 167,843

Lease liabilities 8 14,235 -

Provisions 10 5,298 2,772

TOTAL CURRENT LIABILITIES 124,486 170,615

TOTAL LIABILITIES

124,486

170,615

NET ASSETS

125,170

46,113

EQUITY

Accumulated losses (499,129) (578,186)

Reserves 14 624,299 624,299

TOTAL EQUITY 125,170 46,113



21

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2019

Accumulated

Losses Unification

Reserve Total

Equity $ $ $

Balance at 1 January 2018

(470,209)

624,299

154,090

Comprehensive income

Loss for the year (107,977)

-

(107,977)

Other comprehensive income for the year -

-

-

Total comprehensive income attributable to members of the entity for the year

(107,977)

-

(107,977)

Balance at 31 December 2018

(578,186)

624,299

46,113

Adjustment from adoption of AASB 15, AASB 16 and AASB1058

-

-

-

Adjusted balance at 1 January 2019 (578,186)

624,299

46,113

Comprehensive income

Profit for the year 79,057

-

79,057

Other comprehensive income for the year -

-

-

Total comprehensive income attributable to members of the entity for the year

79,057

-

79,057

Balance at 31 December 2019

(499,129)

624,299

125,170

For a description of the Unification Reserve refer to Note 14.


22

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2019

2019

2018

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from members and other sources 1,135,489 1,124,557

Payments to suppliers and employees (1,119,245) (1,151,529)

Interest paid (1,567) (256)

Net cash used from operating activities 14,677 (27,228)

CASH FLOW FROM INVESTING ACTIVITIES

Payments for property, plant and equipment - (545)

Payments for intangible assets (1,630) (46,702)

Net cash used in investing activities (1,630) (47,247)

CASH FLOW FROM FINANCING ACTIVITIES

Repayment of lease liability (39,376) -

Net cash used in investing activities (39,376) -

Net decrease in cash and cash equivalents held (26,329)

(74,475)

Cash and cash equivalents at beginning of year 4 115,158 189,633

Cash and cash equivalents at end of year 4 88,829 115,158



23

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

1 Summary of significant accounting policies

The financial statements cover Risk Management Institution of Australasia Limited ("the company") as an individual entity, incorporated and domiciled in Australia. The company is a company limited by guarantee.

The financial statements were authorised for issue on 16th April, 2020 by the directors of the company.

Basis of preparation

Risk Management Institution of Australasia Limited ("the company") applies Australian Accounting

Standards - Reduced Disclosure Requirements as set out in AASB 1053 Application of Tiers of

Australian Accounting Standards.

These general purpose financial statements that have been prepared in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and Australian Accounting Standards and Interpretations of the Australian Accounting Board The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

Accounting policies

(a) Revenue

The company has applied AASB 15: Revenue from Contracts with Customers from 1 January 2019. AASB15 requires revenue to be recognised when control of promised good or service is passed to the customer at an amount which reflects the expected consideration.

Revenue is recognised by applying the five-step model as follows:

- Identify the contract with the customer - Identify the performance obligations - Determine the transaction price - Allocate the transaction price

- Recognise revenue when performance obligations are satisfied.

None of the revenue streams of the company have any significant financing terms as there is less than 12 months between receipt of funds and satisfaction of performance obligations.

Revenue from new and renewed memberships is recognised upon receipt of the membership fee.

Revenue from conference activities is recognised in the year the related conference is held, on the basis that the financial period in which the relevant conference is held captures all transactions relating to the particular conference.

Revenue from rendering of others service is recognised once the performance obligation is satisfied for that service, which is upon the delivery of the service to the customer.

Interest revenue is recognised using the effective rate method.

All revenue is stated net of the amount of goods and services tax (GST).


24


1 Summary of significant accounting policies (continued)

(b) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where applicable, accumulated depreciation and impairment losses.

Property, plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount, and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present.

Property, plant and equipment that have been acquired at no cost, or for nominal cost are valued at the fair value of the asset at the date it is acquired.

Depreciation

All property, plant and equipment are depreciated on a straight-line basis over the asset's useful life commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of property, plant and equipment Depreciation Rate

Computer equipment 20%

Furniture and fittings 20%

Leasehold improvements 25%

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss in the financial period in which they arise.

(c) Intangible assets

Trademarks

Trademarks are recognised at the cost of acquisition.

They have finite useful life and are carried at cost less accumulated amortisation and any impairment losses. Amortisation is calculated on a straight line basis over an estimated useful life of five years.

Computer software - websites

Software is initially recognised at cost. It has a finite life and is carried at cost less any accumulated amortisation and impairment losses. Software has an estimated useful life of between one to five years. It is assessed annually for impairment.


25



(d) Leases

The company has adopted AASB 16 : Leases retrospectively with the cumulative effect of initially applying AASB 16 recognised at 1 January 2019. In accordance with AASB 16, the comparatives for the 2018 reporting period have not been restated.

In the current year

At inception of a contract, the company assesses if the contract contains or is a lease. If there is a lease present, a right-of-use asset and a corresponding lease liability is recognised by the company where the company is a lessee. However, all contracts that are classified as short-term leases (ie a lease with a remaining lease term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a straight-line basis over the term of the lease.

Initially, the lease liability is measured at the present value of the lease payments still to be paid at commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate cannot be readily determined, the company uses the incremental borrowing rate.

Lease payments included in the measurement of the lease liability are as follows:

• fixed lease payments less any lease incentives;

• variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

• the amount expected to be payable by the lessee under residual value guarantees;

• the exercise price of purchase options, if the lessee is reasonably certain to exercise the options;

• lease payments under extension options, if the lessee is reasonably certain to exercise the options; and

• payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The right-of-use assets comprise the initial measurement of the corresponding lease liability as mentioned above, any lease payments made at or before the commencement date, as well as any initial direct costs. The subsequent measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the shortest. Where a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the company anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of the underlying asset.

In the comparative year

Leases were classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards of ownership.

Leases of assets where the company, as lessee, had substantially all the risks and benefits of ownership were classified as finance leases. Finance leases were capitalised by recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets subject to finance leases were depreciated on a straight-line basis over their estimated useful lives where it is likely that the company would obtain ownership of the asset. Lease payments were allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remained with the lessor, were charged as expenses on a straight-line basis over the lease term.


26



(e) Financial instruments (continued)

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instruments. Financial instruments, except for trade receivables, are initially measured at fair value plus transaction costs except where the instrument is classified "at fair value through profit and loss", in which case transaction costs are expensed to profit and loss immediately.

Trade receivables are initially measured at the transaction price if the trade receivables do not contain significant financial components.

Classification and subsequent re-measurement

Financial assets

Financial assets, other than those designated and effective as hedging instruments are subsequently measured at:

• amortised cost,

• fair value through other comprehensive income; or

• fair value through profit or loss

on the basis of the two primary criteria, being:

• the contractual cash flow characteristics of the financial asset; and

• the business model for managing the financial asset.

A financial asset is subsequently measured at amortised cost when it meets the following conditions:

• the financial asset is managed solely to collect contractual cash flows; and,

• the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset is subsequently measured at fair value through other comprehensive income when it meets the following conditions:

• the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates; and

• the business model for managing the financial asset comprises both contractual cash flows collection and the selling of the financial asset.

By default, all other financial assets that do not meet the conditions of amortised cost and the fair value through other comprehensive income's measurement condition are subsequently measured at fair value through profit and loss.

The initial designation of the financial instruments to measure at fair value through profit and loss is a one-time option on initial classification and is irrevocable until the financial asset is derecognised.

Equity instruments

At initial recognition, equity instruments that are not held for trading, are eligible for an irrevocable election to be measured at fair value through other comprehensive income, while the dividend revenue received from these instruments will still be recognised in profit or loss.


27



(e) Financial instruments (continued)

Financial liabilities

Financial liabilities are subsequently measured at:

• amortised cost, using the effective interest method; or

• fair value through the profit or loss.

A financial liability is measured at fair value through profit and loss if the financial liability is:

• a contingent consideration of an acquirer in a business combination

• held for trading; or

• initially designated as at fair value through profit or loss.

Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.

Impairment

The company recognises a loss allowance for expected credit losses on financial assets that are measured at amortised costs or fair value through other comprehensive income. Loss allowance is not recognised for financial assets measured at fair value through profit or loss, or equity instruments measured at fair value through other comprehensive income.

Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows expected to be received, all discounted at the original effective interest rate of the financial instrument.

Trade and other receivables

The company has applied a simplified approach in accounting for trade and other receivables and recognises a loss allowance for the amount equal to lifetime credit losses. In measuring the expected credit loss, various data including historical experience and external indicators was taken into consideration.

Recognition of expected credit losses in financial statements

At each reporting date, the company recognised the movement in the loss allowance as an impairment gain or loss in the statement of profit or loss and other comprehensive income. The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.

Assets measured at fair value through other comprehensive income are recognised at fair value with changes in fair value recognised in other comprehensive income. An amount in relation to change in credit risk is transferred from other comprehensive income to profit or loss at every reporting period.

Derecognition

Financial assets are derecognised when the contractual rights to receipt of cash flows expires or the asset and all substantial risks and rewards are transferred are transferred.

Financial liabilities are derecognised when it is extinguished (i.e. when the obligation in the contract is discharged, cancelled or expires). The difference between the carrying value of the financial liability which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.


28



(f) Impairment of assets

At the end of each reporting period, the company assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs of disposal and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is at a revalued amount in accordance with another Australian Accounting Standard. Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

(g) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks, and other short- term highly liquid investments with original maturities of six months or less.

(h) Employee benefits

Short-term employee benefits

Provision is made for the company's obligation for short-term employee benefits. Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within 12 months after the end of the annual reporting period in which employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the obligation is settled

Other long-term employee benefits

Provision is made for employees' long service leave and annual leave entitlements not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting on government bonds that have maturity dates that approximate the terms of the obligations. Upon the re-measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense.

The company's obligations for long-term employee benefits are presented as non-current liabilities in its Statement of Financial Position, except where the company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which the obligations are presented as current liabilities.


29



(h) Employee benefits (continued)

Retirement benefit obligation

Defined contribution superannuation benefits

All employees of the company receive defined contribution superannuation entitlements, for which the company pays the superannuation guarantee contribution in accordance with the applicable laws and regulations to the employee's superannuation fund of choice. All contributions in respect of the employee's defined contribution entitlements are recognised as an expense when they become payable. The company's obligation with respect to employees' defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations for unpaid superannuation guarantee contributions are measured at the undiscounted amounts expected to be paid when the obligation is settled and are presented as current liabilities in the Statement of Financial Position (refer to Note 9).

(i) Trade and other payables

Trade and other payables represent the liabilities for goods and services received by the company during the reporting period that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(j) Provisions

Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(k) Income tax

No provision for income tax has been raised as the company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(l) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or GST payable. The net amount of GST recoverable from, or payable to, the ATO is included with trade and other receivable or payables in the Statement of Financial Position (refer to Note 9).

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows included in receipts from members and other sources or payments to suppliers and employees.

(m) Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company.


30



(n) Comparative figures

Where required by Australian Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.

(o) New and Amended Accounting Policies Adopted by the company

Initial application of AASB 16: Leases

The company has adopted AASB 16: Leases retrospectively with the cumulative effect of initially applying AASB 16 recognised at 1 January 2019. In accordance with AASB 16, the comparatives for the 2018 reporting period have not been restated.

The company has recognised a lease liability and right-of-use asset for all leases (with the exception of short-term and low-value leases) previously recognised as operating leases under AASB 117: Leases where the company is the lessee.

The lease liabilities are measured at the present value of the remaining lease payments. The company's incremental borrowing rate as at 1 January 2019 was used to discount the lease payments.

The incremental borrowing rate applied to lease liabilities at 1 January 2019 was 5%. The difference between the undiscounted lease commitments at 31 December 2018 and the discounted operating lease commitments at 1 January 2019 was due to the discounting at the incremental borrowing rate.

The right-of-use assets for the remaining leases were measured and recognised in the statement of financial position as at 1 January 2019 by taking into consideration the lease liability and prepaid and accrued lease payments previously recognised at 1 January 2019 (that are related to the lease).

Initial application of AASB 15 and AASB 1058

The company has applied AASB 15: Revenue from Contracts with Customers and AASB 1058: Income of Not-for-Profit Entities using the cumulative effective method of initially applying AASB 15 and AASB 1058 as an adjustment to the opening balance of equity at 1 January 2019. Therefore, the comparative information has not been restated and continues to be presented under AASB 118: Revenue and AASB 1004: Contributions.

As a result, the company has changed its revenue accounting policies as detailed in the significant accounting policies Note1.

The adoption of AASB 15 and AASB 1058 has not had a significant financial impact on the financial statements on the initial date of application, being 1 January 2019 or for the year ended 31 December 2019.


31

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

2019

2018

NOTE $ $

2 Revenue and other income

Revenue

Revenue from rendering of services:

Membership subscriptions 288,359 258,480

National conference 496,410 431,487

Education 182,176 168,600

Chapter income 32,212 31,640

Certifications 49,910 45,863

National partnerships 88,659 57,545

Advertising 10,386 10,477

National event registrations 41,120 78,744

Other revenue 877 4,960

Total revenue 1,190,109 1,087,796

Total revenue and other income 1,190,109

1,087,796

3 Expenses for the year

Depreciation and amortisation

Depreciation of property, plant and equipment 6,967 8,135

Depreciation of right-of-use assets 37,843 -

Amortisation of intangible assets 9,422 20,987

Total depreciation and amortisation 54,232

29,122

Rental expenses on operating leases -

38,248

Employee benefits expense:

- Contributions to defined contribution superannuation funds 29,927

45,318


32


NOTE

2019

$ 2018

$

3 Expenses for the year (continued)

Finance costs

- Interest expense on lease liabilities 1,567 -

- Interest expense other - 256

1,567 256

Impairment charge / (benefit) - Trade and other receivables

(2,935)

(2,065)

National and Chapter events

- Certification and education expenses 94,722 61,614

- National event expenses 48,008 74,144

- Chapter event expenses 11,897 11,588

- Other 5,839 14,441

Total National and Chapter events expense 160,466 161,787

4 Cash and cash equivalents

Current

Cash at bank 13 88,829 115,158

5 Trade and other receivables

Current

Trade receivables 40,000 8,274

Provision for impairment - (2,935)

40,000 5,339

GST refund 17,861 278

Rental bonds 9,240 9,240

13 67,101 14,857

Provision for impairment of receivables

Provision for impairment as at beginning of year (2,935) (5,000)

Benefit / (charge) for the year 2,935 2,065

Provision for impairment as at end of year - (2,935)


33


6 Property, plant and equipment

2019 2018

NOTE $ $

Computer equipment

At cost 23,535 23,535

Accumulated depreciation (16,113) (12,995)

7,422 10,540

Furniture and fittings

At cost 11,020 11,020


4,380 6,584

Leasehold improvements

At cost 6,580 6,580


1,134 2,779

Total property, plant and equipment

12,936

19,903

Movements in carrying amounts

Movement in carrying amounts for each class of property, plant and equipment between the beginning and end of the current financial year.

Computer

equipment

Furniture and fittings

Leasehold improvements

Total

$ $ $ $

Carrying amount at 1 January 2019 10,540 6,584 2,779 19,903

Additions at cost - - -

Depreciation expense (3,118) (2,204) (1,645) (6,967)

Carrying amount at 31 December 2019 7,422 4,380 1,134 12,936


34


2019 2018

NOTE $ $

7 Intangible assets

Trademarks

At cost 5,400 5,400

Accumulated amortisation (4,710) (4,350)

690 1,050

Website - imem

At cost - 50,427

Accumulated amortisation - (50,427)

- -

CRM - ME

At cost 48,332 46,702

Accumulated amortisation (9,062) -

39,270 46,702

Carrying amount

39,960 47,752

Trademarks

$

Website CRM imem ME

$ $

Total

$

Carrying amount at 1 January 2019 1,050 - 46,702 47,752

Additions at cost - - 1,630 1,630

Amortisation expense (360) - (9,062) (9,422)

Carrying amount at 31 December 2019 690 - 39,270 39,960


35


2019 2018

NOTE $ $

8 Leases

The property lease is for the North Sydney premises with a two year term and a two year option. The lease commenced 6 May 2016. The two year option was exercised and the lease extended to 5 May 2020 with no further option to renew.

Right-of-use asset

Leased Building 53,611 -

Accumulated depreciation (37,843) -

Total right-of-use asset 15,768 -

Movement in carrying value of asset:

Leased buildings:

Recognised on initial application of AASB 16 (previously classified as operating leases under AASB 117)

53,611

-

Depreciation expense (37,843) -

Net carrying value 15,768 -

Lease Liability

Current

Lease of building 14,235 -

AASB 16 related amounts recognised in the statement of profit or loss and other comprehensive income:

Depreciation charge related to right-of-use assets 37,843 -

Interest expense on lease liabilities 1,567 -

Statement of cash flows

Total cash outflows for leases 40,943 38,248

The company has changed its accounting policy for leases where the company is a lessee.

Until the 2018 financial year, leases of property, plant and equipment were classified as either finance leases or operating leases. From 1 January 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the company.

The new policy in the 2019 financial year and is described at Note 1(d). The impact of the change in Note1(o)


36


NOTE

2019

$

2018

$

9 Trade and other payables

Current


- Trade creditors 2,548 50,485

- Non-trade creditors and accrued expenses 30,484 38,372

Non-financial liabilities

13 33,032 88,857

- Revenue in advance 71,921 78,986

Total trade and other payables 104,953 167,843

10 Provisions

Current

Provision for employee benefits 5,298 2,772

Analysis of total provision

Employee benefits

$

Opening balance as at 1 January 2019

2,772

Additional provision raised during the year 22,304

Provision used during the year (19,778)

Closing balance as at 31 December 2019 5,298

Provision for employee benefits represents amounts accrued for annual leave.

The current portion for this provision includes the total amount accrued for annual leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the company does not expect the full amount of annual leave classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.

The measurement and recognition criteria for employee benefits have been discussed in Note 1(h).


37


2019 2018 $ $

11 Operating lease commitments

Non-cancellable operating leases contracted for but not capitalised in the financial statements:

Minimum lease payments

- not later than 12 months - 40,940

- later than 12 months but not later than five years - 14,390

- 55,330

The property lease commitment for the North Sydney premises is a non-cancellable operating lease contracted for but not capitalised in the financial statements with a two year term and a two year option. The lease commenced 6 May 2016. The two year option was exercised and the lease extended to 5 May 2020 with no further option to renew.

12

Related party transactions

(i) Key management personnel

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel.

The totals of remuneration paid to key management personnel compensation of the company during the year

163,020

176,683

(ii) Other related parties

Other related parties include close family members of key management personnel, and entities that are controlled or jointly controlled by those key management personnel individually or collectively with their close family members.

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. There were no such transactions during the financial year (2018: $Nil).


38


NOTE

2019

$ 2018

$

13 Financial risk management

The company's financial instruments consist mainly of deposits with banks, short-term investment, trade receivable and payable and leases.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 Financial Instruments: Recognition and Measurement as detailed in the accounting policies to these financial statements are as follows:

Financial assets

Cash and cash equivalents 4 88,829 115,158

Trade and other receivables 5 67,101 14,857 Total financial assets 155,930 130,015


Trade and other payables 9 33,032 88,857

Lease liabilities 8 14,235

Total financial liabilities 47,267 88,857

Net fair values

The net fair values of financial assets and financial liabilities approximate their recognised carrying values. The aggregate carrying amounts of financial assets and financial liabilities are disclosed in the Statement of Financial Position and in the notes to the financial statements. No financial assets and financial liabilities are readily traded on organised markets in standardised form. Financial assets where the carrying amount exceeds net fair values have not been written down as the company intends to hold these assets to maturity.

14 Reserves

Unification Reserve

The company was originally formed by the merger of two previously existing organisations. The Unification Reserve represents the members' funds contributed by these two previously existing organisations when they were unified to form this company.


39


15 Events subsequent to reporting date

Other than the following, the directors are not aware of any significant events since the end of the reporting period.

At the date of this report, the COVID-19 pandemic had spread extensively throughout the world across more than 197 countries, areas or territories. This includes Australia, where the impacts are already significant on all parts of industry and commerce nationally with Australia and some states closing borders. Further, there have been extensive government directives for some business types to either significantly curtail the provision of services or to cease operations completely. As such, members have experienced significant impact professionally and personally.

The Board has convened to consider various scenarios with regard to impacts, both direct and indirect, on demand for and provision of member services, inclusive of financial modelling. Whilst it is impossible to predict exactly what the financial impact and outcome will be for RMIA throughout the remainder of 2020 the financial modelling undertaken for and considered by the Board does demonstrate a reasonable capacity to absorb a material income shock and still remain cash positive at the end of 2020.

The company is reviewing all areas and services of the business to adapt to the significant disruption confronted by the COVID-19 pandemic. Areas of focus will be to ensure that there is provision of ongoing opportunities for the risk community to connect with RMIA through various on-line channels. Also, for those still wanting to pursue personal developments opportunities, ensuring there are mechanisms in place to do this remotely. The Board will continue to monitor the impacts of the COVID-19 pandemic on the company continuously, diligently and with a focus on continuity of services to members.

The financial effects of COVID-19 pandemic have not been brought to account in the 2019 financial statements.


40

DIRECTORS' DECLARATION

The directors of the registered entity declare that, in the directors' opinion:

1. The financial statements and notes as set out on pages 8 to 28 are in accordance with the Australian Charities and Not-for-profits Commission Act 2012 and:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements; and

(b) give a true and fair view of the financial position of the registered entity as at 31 December 2019

and of its performance for the year ended on that date.

2. There are reasonable grounds to believe that the registered entity will be able to pay its debts as and when they become due and payable.

This declaration is signed in accordance with subs 60.15(2) of the Australian Charities and Not-for-profits Commission Regulation 2013.

Director ........................................................... .

Director

Dated this

...........................................................

16th day of April 2020

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

RISK MANAGEMENT INSTITUTION OF AUSTRALASIA LIMITED A.B.N. 82 106 528 509

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Risk Management Institution of Australasia Limited (the registered entity), which comprises the statement of financial position as at 31 December 2019, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors' declaration.

In our opinion, the accompanying financial report of Risk Management Institution of Australasia Limited has been prepared in accordance with Div 60 of the Australian Charities and Not-for-profits Commission Act 2012, including:

(i). giving a true and fair view of the registered entity's financial position as at 31 December 2019 and of its performance for the year then ended; and

(ii). complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis of Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the registered entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

We draw attention to Note 15 of the financial report, which describes the company's approach to dealing with the effects and significant disruption due to the COVID-19 Pandemic subsequent to balance date. Our opinion is not modified in respect of this matter.

Information Other than the Financial Report and Auditor's Report Thereon

The directors are responsible for the other information. The other information comprises the information included in the registered entity's annual report for the year ended 31 December 2019, but does not include the financial report and our auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the registered entity are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Australian Charities and Not-for-profits Commission Act 2012 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

42

In preparing the financial report, the directors are responsible for assessing the registered entity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the registered entity or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the registered entity's internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the registered entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the registered entity to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Name of Firm: Thomas GLC

Chartered Accountants

....................................... Name of Partner: Glenn McEwen

Address: Hornsby


Risk Management Institute of Australasia ABN 82 106 528 509

www.rmia.org.au Suite 602A 97 Pacific Highway North Sydney, NSW 2060 | [email protected] | +61 02 9095 2500

mailto:[email protected]

rmia annual report 2019 · online based events, and have held in may a virtual risk cuppa event to...

Documents