Key terms

Understanding the portfolio

Portfolio projects

A portfolio project is a time-bound initiative that introduces change to people, business processes or systems and normally affects at least two business units. It has defined start and end dates, generally lasts more than one month, requires resources from multiple business units and has capital or operating expenditure of at least $250,000 in whole-of-life costs. A Deputy Secretary can also require an initiative to be managed as a portfolio project.

Portfolio health status

Red, Amber and Green (RAG) status is a point-in-time assessment drawn from project reporting. It reflects performance against the approved baseline for budget, schedule, scope and benefits. Where an initiative is amber or red, its profile explains the issue and the actions being taken to return delivery to green.

• Green - The initiative is on track against its approved scope, schedule, budget and expected benefits.
• Amber - The initiative is at risk, but recovery is considered achievable through active management and agreed actions.
• Red - The initiative is at significant risk, and governance intervention is required. A change request or other formal decision may be needed to reset the approved baseline.

Key portfolio terms

• Whole-of-life cost (WoLC) - WOLC is an estimate of the total cash costs of goods, services or construction works over the entire life of the asset or investment. They are made up of the purchase price plus all the associated costs that will be incurred over the full life of the investment.
• Approved baseline - The formally approved scope, cost, schedule and benefits against which performance is assessed.
• Risk profile assessment - An assessment of the initiative’s inherent risk. Medium and High ratings can trigger additional Treasury reporting or assurance requirements.
• Return to green - The actions needed to address delivery issues and restore performance against the approved baseline.
• Independent quality assurance - An independent review that provides confidence in delivery, evidence and proposed next steps.
• Gateway review - An independent check at key stages of a programme or project to assess whether an investment is ready to move successfully to its next stage.

Portfolio information is a point in time view based on August 2026 reporting and approved governance records.

How the portfolio is managed

Investment delivery governance

MBIE has formal processes for managing and overseeing projects and programmes. These help senior leaders make informed investment decisions, identify and manage risks and check that public money and resources are being used responsibly. The level of reporting and oversight for each initiative depends on its size, complexity and risk.

• Finance, Investment and Change Committee - Approves MBIE’s 4 year Investment Plan and oversees the investment portfolio. Proposals outside the plan, or above business delegated authority, must be supported by this committee before seeking approval from the Minister or Cabinet approval where required.
• Delivery Governance Board - Oversees portfolio projects and programmes, regardless of funding source, and makes investment decisions within its delegation. It can approve investments with whole-of-life costs up to $20 million.
• Project and Programme Steering Groups - Oversees and directs the project or programme. The group makes decisions, endorses governance documents before submission to higher governance forums and monitors health and status.

Benefits and value

Investment proposals must explain the benefits they are expected to deliver, how these will be measured and how they support MBIE’s strategic direction. This helps MBIE compare investments, understand their combined benefits and decide which should take priority. Before a project closes, the business reviews its expected benefits, updates the relevant records and confirms who will continue measuring the benefits after delivery ends.

Risk and assurance

All MBIE projects and programmes complete a Treasury Risk Profile Assessment (RPA), and if applicable a Strategic Assessment, early in their lifecycle. These assessments describe inherent risk, strategic alignment and investment need, and help determine the required business case, quarterly reporting and Gateway review approach. Assessments are reviewed when material changes occur. All MBIE projects and programmes manage risks according to MBIE’s risk management framework, this includes maintaining a risk register throughout their lifecycle. Projects also maintain an assurance plan, which may include independent quality assurance and technical quality assurance to test delivery confidence and support governance decisions.