Victorian Government Sponsorship Policy: Principles (Implementing Effective Risk Management)


Introduction, Application and Definitions
Relevant Legislation and Policies
Principles: Ensuring Probity
Principles: Achieving Efficiency and Effectiveness
Principles: Ensuring Accountability
Principles: Implementing Effective Risk Management

Implementing Effective Risk Management

Appropriate Association

Victorian Government agencies will ensure that all associations with external organisations created through sponsorship arrangements are appropriate, and that necessary safeguards are taken to protect the Government's reputation.

'Appropriate associations' are those made with sponsorship partners whose values, activities, products and purposes are consistent with the values, activities, purposes and goals of the Victorian Government.

  • Agencies must ensure that sponsorship arrangements are entered into only with organisations where the risk of damage to the reputation of the agency and/or the Government as a whole is low.

  • Agencies should carry out reasonable background checks on potential sponsorship associates to ensure that their full range of business interests and activities, and any potential risks are identified.

  • Sponsorship agreements should specify that Victorian Government sponsorship is not a general endorsement of the organisation or its products by Government, and that the arrangement must not be promoted or publicised as such.

  • Agencies should ensure that sponsorship agreements provide for termination of the arrangement, should the association cease to be appropriate.

  • Appropriate authorisation, up to Ministerial level, is required for any sponsorship agreement that confers naming rights for a Government asset, event or initiative.

  • Appropriate authorisation, up to Secretary level, is required for any sponsorship agreement that involves Government acquisition of naming rights for an external asset, event or initiative.

Financial Risks

Agencies will ensure that sponsorship procedures ensure effective financial risk management.

  • Agencies should carry out financial viability checks on potential sponsorship associates to ensure that potential financial risks are identified.

  • Sponsorship agreements should include procedures to recover or withhold financial benefits where there is inadequate delivery of agreed benefits by the other party, particularly if the sponsorship recipient becomes subject to the agency’s regulation or inspection while the sponsorship agreement is in effect.

Further information

Contact your Department's Senior Communication Executive in the first instance.

Strategic Communication and Protocol Branch
Department of Premier and Cabinet

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Last updated on Monday, 05 November 2018