2025 Standards for RTOs - Skills Education’s Standards Hub 4.3

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Quality Area 4 - Governance

Effective governance and a commitment to continuous improvement supports the quality and integrity of VET delivery.

Division 2 - Risk management

Requirements

Standard 4.3

Outcome Standard

(1) Any risks to VET students, staff and the organisation itself are identified and managed.

Performance Indicators

(2) An NVR registered training organisation demonstrates:

(a) it identifies, manages and reviews risks to VET students, staff and the organisation;

(b) how the financial position, financial performance and cashflows of the organisation are managed, monitored and understood by governing persons;

Note: In accordance with section 24 of the Act, NVR registered training organisations must also comply with the Financial Viability Risk Assessment Requirements made under section 158 of the Act.

(c) it has a system for identifying, managing and disclosing any real or apparent conflicts of interest; and

(d) where it offers training or assessment to VET students aged under 18 – risks to their safety and wellbeing associated with the organisation’s delivery of the training or assessment are identified and managed:

(i) by having regard to the training content and modes of delivery; and

(ii) in accordance with the National Principles for Child Safe Organisations, as in force from time to time.

Note: Section 191A of the Act permits this instrument to make provision in relation to a matter by applying, adopting or incorporating any matter contained in another instrument or other writing as in force or existing from time to time.

Risks

Solely relying on purchased risk management systems without tailoring them to be reflective of your actual operational environment, student cohort and contemporary risks.
Insufficient financial planning or management of financial risks.
Failure to review and assess the potential impact of ASQA’s regulatory risk priorities in the context of your operations. These are sector-wide risks that have the potential to impact the VET sector’s reputation, integrity, market health or student outcomes.
Aiming for technical compliance rather than actively managing risks to the outcomes intended by the Standards.
Failing to effectively monitor conflicts of interest, including third party conflicts of interest, which undermines quality and integrity of operations.
Not properly securing and protecting personal information and sensitive information, in line with privacy legislation and cybersecurity principles.