Yes: High risk
You are preparing a high risk proposal. You will need to undertake an economic assessment as part of the full business case.
Based on your selection, the proposal is High Value High Risk (HVHR). In addition to a full business case, requirements under the DTF HVHR investment framework also apply.
HVHR investments are subject to extra scrutiny, approval processes and ongoing involvement by the Treasurer and DTF. Business areas are strongly encouraged to consult relevant DTF staff early to facilitate the HVHR assessment process.
A description of the investment lifecycle covers the full process of developing and implementing initiatives.
Guidelines for developing a HVHR investment business case are available on the DTF website, as are other tools, templates and HVHR guidelines and information about the Gateway review process required for HVHR proposals.
Note that you are encouraged to check with your finance area for the most up-to-date process.
How should I undertake the economic assessment?
Guidance on undertaking economic assessment Guidance-on-how-to-undertake-economic-assessment-internet.DOCX (DOCX 127.36 KB) has been developed to assist when performing, commissioning and evaluating economic assessments. Further guidance on specific processes, variables and methods is also available.
Cost-benefit analysis is recognised as leading practice economic assessment and is the recommended approach across the Victorian Government. In practice it may not be possible to undertake a cost-benefit analysis for all proposals and other methods may be used on an exceptions basis.
All economic assessments should be guided by the principle of proportionality, such that the investment in undertaking an economic assessment should be proportional to the scale and risk of the particular issue, initiative or investment.
Page last updated: 10 March 2020