Governance Risk and Decision Exposure
Planning decisions do not usually fail at the moment they are made. They become exposed later, when the quality of the process and the decision record is tested.
What “governance risk” means
Governance risk refers to the likelihood that a decision will become difficult to defend under scrutiny. This may occur through appeal, complaint, audit, review, or other oversight mechanisms.
Risk is not about whether a decision is controversial. It is about whether the process and record demonstrate that the decision was made lawfully, fairly, and on an adequate evidential basis.
Decision exposure is cumulative
Exposure rarely arises from a single flaw. It usually results from the accumulation of smaller weaknesses across the decision process.
Individually, these issues may appear manageable. Taken together, they can leave the decision vulnerable when examined as a whole.
Common sources of exposure
Decisions tend to become exposed where one or more of the following are present:
- decision-critical issues treated as deferrable
- evidence existing in the file but not relied upon in reasons
- superficial or selective policy engagement
- material consultee positions not clearly reflected
- unclear, incomplete, or inconsistent recorded reasons
These are procedural and evidential issues, not matters of opinion.
Why reasonable outcomes can still be exposed
A decision may appear reasonable on its merits and still carry governance risk. This occurs where the record does not demonstrate how that outcome was reached.
Planning governance is concerned with whether the decision can be understood, tested, and justified by reference to the material considerations relied upon.
Exposure is about the record, not intent
Governance analysis does not assess what decision-makers intended or believed. It assesses what the decision record shows.
Where the record is thin, assumptions are required. Where assumptions are required, exposure increases.
Reducing governance risk
Governance risk is reduced when decision processes are disciplined and transparent. This includes:
- clear identification of decision-critical issues
- proper separation of evidence, analysis, and recommendation
- lawful use of conditions and deferral
- clear, consistent, and intelligible recorded reasons
These measures protect decision-makers as much as they protect the public.