Transcript Recommending a Strategy

Risk & Opportunity Management
Putting theory into Practice
Susy Austin
MQM
Business Consultant
The Story of Risk
Management
Today’s world is more competitive
Less tolerant of poor performance
Subject to increased public scrutiny
Culture of litigation
Focus on good Corporate Governance
Risk Management Standard
1995 AS/NZ 4360
1999 Australian Standard
revised
AS/NZ 4360 1999
What is a Risk?
AS/NZ 4360
the chance of something happening that
will impact on the objectives of an
organisation
What is Risk Management?
The systems and processes in place to
manage adverse events and also potential
opportunities
Risk Management
Should examine the entire
spectrum of risk
Political or community perception
Financial
Human Resource
Environment
Public liability, safety
Establish the
Context
Identify Risks
Monitor /
Review
RISK
CYCLE
Action
MRPlan
Action Plan
Identity
Identify
causes &
consequences
Consequences
Identify the
controls
Apply a
risk rating
Why Have a Risk
Management Program?
Because you have to!
Fear of litigation
Lack of adequate insurance cover
Reduction in the need for crisis management
Secure Corporate Governance
Can contribute to overall achievement of corporate goals
and objectives
Areas requiring concentrated effort are highlighted
Effective allocation of delivery of products / services
High standard of customer service
Reduced number of adverse incidents
Getting started:
Right people
Start small,
simple
Brainstorm
Use tools
Logical step by
step AS/NZS 4360
Priority Criteria
Fatalities / Injuries
Damage to Assets
Damage to the Environment
Damage to Reputation / Credibility
Damage to Private Property
Class Action
Risk Management Process
Context
Risk identification
“What could go wrong?”
“How and why could it
happen?”
Risk Management Process
Controls
Rating the risk
What probability is there of the risk
occurring? (likelihood)
How serious will the
outcome of the
event be? (impact)
?
Risk Management Process
Risk Treatment
Avoid the risk altogether
Transfer liability for the risk to another party
Accept the risk
Reduce the likelihood / consequence of the
risk occurring
Sunshine Park Trail
Risk Management Report
Date: September 2004
Risk
Causes
Description
Consequences
Current
Controls
Risk
Rating
(Likelihood
Impact)
Actions/Strategies
to reduce the risk