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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 - PowerPoint PPT Presentation
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Risk & Opportunity Risk & Opportunity ManagementManagement
Putting theory into Practice Putting theory into Practice
Susy AustinSusy Austin
MQMMQM
Business ConsultantBusiness Consultant
The Story of Risk The Story of Risk ManagementManagement
Today’s world is more competitiveToday’s world is more competitive
Less tolerant of poor performanceLess tolerant of poor performance
Subject to increased public Subject to increased public scrutinyscrutiny
Culture of litigationCulture of litigation
Focus on good Corporate Focus on good Corporate GovernanceGovernance
Risk Management Risk Management StandardStandard
1995 AS/NZ 43601995 AS/NZ 4360
1999 Australian Standard1999 Australian Standard
revisedrevised
AS/NZ 4360 1999AS/NZ 4360 1999
What is a Risk?What is a Risk?AS/NZ 4360AS/NZ 4360
the the chancechance of something happening of something happening that will that will impactimpact on the objectives of on the objectives of an organisationan organisation
What is Risk Management?What is Risk Management?
The systems and processes in place The systems and processes in place to manage to manage adverse eventsadverse events and also and also potential opportunitiespotential opportunities
Risk ManagementRisk Management
Should examine the entireShould examine the entire
spectrum of riskspectrum of risk
Political or community perceptionPolitical or community perception
FinancialFinancial
Human ResourceHuman Resource
EnvironmentEnvironment
Public liability, safety Public liability, safety
Identity Consequences
MR Action Plan
Establish the Context
Identify Risks
Identify the controls
Monitor / Review
Start here
RISK CYCLE
Identify causes & consequences
Action Plan
Apply a risk rating
Why Have a Risk Why Have a Risk Management Program?Management Program?Because you have to!Because you have to!Fear of litigationFear of litigationLack of adequate insurance coverLack of adequate insurance coverReduction in the need for crisis managementReduction in the need for crisis managementSecure Corporate GovernanceSecure Corporate GovernanceCan contribute to overall achievement of corporate Can contribute to overall achievement of corporate goals and objectivesgoals and objectivesAreas requiring concentrated effort are highlightedAreas requiring concentrated effort are highlighted Effective allocation of delivery of products / servicesEffective allocation of delivery of products / servicesHigh standard of customer serviceHigh standard of customer serviceReduced number of adverse incidents Reduced number of adverse incidents
Getting started:Getting started:
Right peopleRight peopleStart small, Start small, simplesimpleBrainstormBrainstormUse toolsUse toolsLogical step by Logical step by step step AS/NZS 4360AS/NZS 4360
Priority CriteriaPriority Criteria
Fatalities / InjuriesFatalities / Injuries
Damage to AssetsDamage to Assets
Damage to the EnvironmentDamage to the Environment
Damage to Reputation / Damage to Reputation / CredibilityCredibility
Damage to Private PropertyDamage to Private Property
Class ActionClass Action
Risk Management Risk Management ProcessProcess
ContextContext
Risk identificationRisk identification
““What could go wrong?”What could go wrong?”
““How and why could itHow and why could it
happen?”happen?”
Risk Management Risk Management ProcessProcess
ControlsControlsRating the riskRating the risk
What probability is there of the risk What probability is there of the risk occurring? occurring? (likelihood)(likelihood)
How serious will theHow serious will the outcome of the outcome of the event be? event be? (impact)(impact)
?
Risk Management Risk Management ProcessProcess
Risk TreatmentRisk Treatment
Avoid the risk altogetherAvoid the risk altogether
Transfer liability for the risk to another Transfer liability for the risk to another partyparty
Accept the riskAccept the risk
Reduce the likelihood / consequence of Reduce the likelihood / consequence of the risk occurringthe risk occurring
Sunshine Park TrailSunshine Park TrailRisk Management ReportRisk Management Report
Date: September 2004Date: September 2004
Risk Description
Causes
Consequences
Current Controls
Risk Rating(LikelihoodImpact)
Actions/Strategies to reduce the risk
