Risk Management Workbook

Handout 6.1.1 Risk Management Planning Workbook Unit 6

Handout 6.1.1 Risk Management Planning Workbook

This handout supports study and skills application in BSBRSK501A Manage Risk.

The handout is a complete workbook. It will form the basis for working through a formal risk management process.

By completing each Tool you will build all the components required for a basic Risk Management Plan. While Risk Management Plans may vary in

terms of focus and content across different organisations and operational areas, this workbook includes standard tools and templates. In

discussions with your facilitator or assessor you may choose to substitute tools in this workbook with alternatives, for instance ones you may use

in your organisation.

If you are being formally assessed for BSBRSK501A Manage Risk the submission of this workbook will provide evidence as to your competence.

There are ten tools and templates in this workbook.

Tool 1 - Goal and purpose and the alignment of risk categories and criteria......................................................................................................2

Tool 2 - Stakeholder identification and ranking template....................................................................................................................................... 3

Tool 3 - Risk register template.................................................................................................................................................................................. 4

Tool 4 - Task Analysis and Risk Identification Tool................................................................................................................................................ 5

Tool 5 - SWOT Analysis............................................................................................................................................................................................. 8

Tool 6 - PEST Analysis.............................................................................................................................................................................................. 9

Tool 7 - Identifying and Analysing Risks............................................................................................................................................................... 11

Tool 8 - Risk Assessment Matrix............................................................................................................................................................................ 12

Tool 9 - Risk Treatment Schedule and Action Plan.............................................................................................................................................. 13

Tool 10 – Risk Management Plan Request Form.................................................................................................................................................. 14


Tool 1 - Goal and purpose and the alignment of risk categories and criteria

Targeting Statements or description

Vision & Values

Including vision statement and any supporting values that the risk will impact.Goals

Including strategy, products, services, profitability, etc. likely to be impacted by the risk.

Describe the risk

Including how leaders are measuring goals (KPI) or impact.

Risk Category

List the risk category or elements of operations the risk will impact.

Criteria

Determine the likely impact of this level of risk if it is not treated.


Tool 2 - Stakeholder identification and ranking template

Team/Project/Operational Area:

Description of risk in brief:

Stakeholder Power* Interest*

Date Issued: Version:Responsible officer Contact:

* Use the Power and Influence Grid provided in your study guide to rank each stakeholder.


Tool 3 - Risk register template

Organisation:

Area: Date Issued:

Compiled by: Contact details:

Ris

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The risk What can happen?

(event or type)

How can it

happen?

(source)

What can happen?

(impact)

Existing

controls?

Y = Yes

N = No


Tool 4 - Task Analysis and Risk Identification Tool

Company Name:

Position:

Job Identification:

Function/ Department:

Job Classification:

Assessor/Reviewer: Date of analysis:

Competency or Role:

Description: This role refers to the preparation and firing of shot in an open cut mining operation.

Job Steps Risk Possible impact

H=High

M=Moderate

L=Low

Notes on risk (ie. Affects safety, process, people, customers, etc.)

1.

2.

3.

4.


Example:The following job has five major technical competencies/roles (1. Site preparation; 2. Shot firing; 3. Dangerous goods handling and transportation; 4. Safety; 5. Documentation and reporting). The Shot firing role has been examined by job steps for risks. Note: This is only an example.

Greater Eagle Mining

Position: Mining shot firer (Open Cut)

Job Identification: MIN233

Function/ Department: NT Mineral extraction

Job Classification: Grade 5

Assessor/Reviewer: Peter Bloggs Date of analysis: 11/10/2010

Competency or Role: 2. Shot firing – open cut

Description: This role refers to the preparation and firing of shot in an open cut mining operation.

Job Steps Risk Possible importance

H=High

M=Moderate

L=Low

Notes on risk (ie. Ability to address and possible impact - safety, process, people, customers, etc.)

1. Check drill holes Drill holes are not deep enough H Affect efficiency and success of firing

Drill holes have obstructions M May affect efficiency and success of firing

Drill holes are not placed correctly H Affect efficiency and success of firing

Size of holes is incorrect H Affect positioning of the shot

2. Check and place shot Shots have not been watered before scaling H Affect efficiency and success of firing

Incorrect loading H Affect efficiency and success of firing

Incorrect placement of loads in shot holes H Affect efficiency and success of firing

Issues affecting scaling are incorrectly determined H Affect efficiency and success of firing, may cause safety concerns for personnel (placement from shot)

3. Prepare safety equipment Incorrect personal protective equipment worn M Affects personal safety

Confirm all on site personnel correctly equipped H Affects safety of personnel

Personnel inappropriately equipped to deal with possible exposure to carbon monoxide and oxides of nitrogen

H Affects safety of personnel and can cause death

Duration or delay in firing may cause personnel to have longer exposure to the sun

L-M Affects safety of personnel

4. Check equipment and prepare for firing Shot lines are not all checked H Affect efficiency and success of firing


Sequence of firing is incorrect H Affect efficiency and success of firing

Lines are exposed to elements that may affect signal M Affect efficiency and success of firing

5. Undertake warning and shot firing

communication to site and compliance

requirements

Communications devices are not working H Affect efficiency of firing and safety of personnel

Warning not done in adequate time H Affects safety of personnel and can cause death

Not all relevant personnel are aware of shot firing H Affects safety of personnel and can cause death

Hazard communication is not understood by personnel on site

M Affect efficiency of firing and safety of personnel

6. Fire shot Signal is not received by detonators H Affect efficiency and success of firing

Signal is triggered early or late H Affect efficiency of firing and safety of personnel


Tool 5 - SWOT Analysis


Tool 6 - PEST Analysis


Example: The following is a ‘sanitised’ example of a PEST analysis completed by an Australian public health care organisation in mid 2009. The organisation supports public health services in a number of Australian states and in New Zealand.


Tool 7 - Identifying and Analysing Risks

Organisation: Compiled by: Date:

Function/Activity: Reviewed by: Date:

Ris

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The RiskWhat Can Happen?

SourceHow can this Happen?

ImpactWhat will happen/

consequences?

Current control

Strategiesand their

effectiveness

(A) –Adequate(M) –

Moderate(I) –

Indadequate

Risk Analysis Risk Priority

Acc

epta

bili

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A/U

)

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Ris

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Tool 8 - Risk Assessment Matrix

Category ↓ Consequence →→→

PeopleInjuries or ailments not

requiring medical treatment.

Minor injury or First Aid Treatment Case.

Serious injury causing hospitalisation or multiple medical treatment cases.

Life threatening injury or multiple serious

injuries causing hospitalisation.

Death or multiple life threatening injuries.

Reputation Internal Review

Scrutiny required by internal committees or

internal audit to prevent escalation.

Scrutiny required by external committees or ACT Auditor General’s Office, or inquest, etc.

Intense public, political and media scrutiny. Eg:

front page headlines, TV, etc.

Assembly inquiry or Commission of inquiry

or adverse national media.

Business Process & Systems

Minor errors in systems or processes requiring

corrective action, or minor delay without impact on overall

schedule.

Policy procedural rule occasionally not met or

services do not fully meet needs.

One or more key accountability

requirements not met. Inconvenient but not

client welfare threatening.

Strategies not consistent with

Government’s agenda. Trends show service is

degraded.

Critical system failure, bad policy advice or

ongoing non-compliance. Business

severely affected.

ComplianceLow-level breach with

limited follow up and no legal action

Breach with report required by

compliance body and possibility of later legal

action

Serious breach with investigation, report by compliance body and

possibility of legal sanctions

Major breach with penalty and possible

litigation

Serious breach, litigation occurs, and

investigation by professional, regulatory

or legislative body

Safety No injuryMinor injury requiring

treatmentMajor injury requiring

first aid treatment Major injury requiring

hospital treatment Death or major injury

Financial 1% of Budget or <$5K

2.5% of Budget or <$50K

> 5% of Budget or <$500K

> 10% of Budget or <$5M

>25% of Budget or >$5M

Minor Moderate Major Significant Catastrophic

Probability: Historical: 1 2 3 4 5

Lik

elih

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d →

→→

>1 in 10Is expected to occur in most circumstances

5 Very likely M H H E E

1 in 10 - 100Will probably occur

4 Likely L M H H E

1 in 100 – 1,000Might occur at some time in the future

3 Possible L M M H H

1 in 1,000 – 10,000Could occur but doubtful 2 Unlikely L L M M H

1 in 10,000 – 100,000

May occur but only in exceptional circumstances

1 Highly unlikely L L L L M(Adapted from Standards Australia Risk Management AS/NZS 4360: 2004)

E – Extreme risk – detailed action plan requiredH - High risk – needs senior management attentionM – Medium risk – specify management responsibilityL – Low risk – manage by routine procedures

High or Extreme risks must be reported to Senior Management and require detailed treatment plans to reduce the risk to Low or Medium.


Tool 9 - Risk Treatment Schedule and Action Plan

Organisation: Compiled by: Date:

Function/Activity: Reviewed by: Date:

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Possible Treatment Options Result of cost-benefit

analysisA: acceptB: reject

Is the Treatment to be

Implemented

(Y/N)

Risk Analysis

Responsible Person TimetableFor implementation, Start – Finish date

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Tool 10 – Risk Management Plan Request Form

Organisation: Operational Area- Context:

Risk Reference: Risk Title:

Level of Risk Low Risk Moderate Risks High Risk Extreme Risk

Proposed By:

Reviewed By:

Date Received: Allocate Request Number:

Proposed Treatment Description:

Risk Category:

People [ ] Safety [ ] Business process & systems [ ] Compliance [ ]

Procedural [ ] Finance [ ] Other [ ] specify:

Consequences if risk not treated:{Notes on how issue will impact context}

Treatment Objectives :{Notes on outcomes treatment and control will bring to the organisation or operational area}1.2.3.4.5.6.

Review:

Reviewer comments: {Notes by reviewer of this treatment}


Recommendations: {Reviewer’s recommendations}

Date review completed: {MM/DD/YYYY}Analysis:

Risk assessment completed? No [ ] Yes [ ]

Cost: Benefit Analysis completed? No [ ] Yes [ ]

Supporting documents attached? No [ ] Yes [ ]

Planned Milestones for Monitoring and Review

List any milestones that are late as well as deliverables that can be monitored in the planned timeframe.

Milestone Approved Schedule{dd/mm/yyyy}

Actual{dd/mm/yyyy}

Current Forecast{dd/mm/yyyy}

Status*

* Status indicator:{Used to report monitor and review of treatment progress}

Green(Controlled)

Yellow (Caution)

Red(Critical)

Estimate of Additional Effort: (insert rows as needed)

Resources Required Work Days/Costs


Management Action:

{Senior management approval required for High and Extreme level risks}

Recommendation status:Accept [ ]Reject [ ]Defer [ ]

Approved Commencement Date: {MM/DD/YYYY}Planned Completion Date: {MM/DD/YYYY}

Assigned to:

Name Title Date(MM/DD/YYYY)

Comment

Approving Manager:

Signed….

I have reviewed the information contained in this Risk Management Plan Request and agree.

Date: _____/_______/______

Documents

Risk Management Workbook