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Content points

Leadership & Culture Management Systems Risk Management Process

• Communication and Consultation

• Establish the Context

• Identify the Risks

• Analyse the Risks

• Evaluate the Risks

• Treat the Risks

• Monitor and Review

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The aim is to manage risk

An organisation can manage risk by screening out events which can either cause harm or which can reduce the chance of getting the best possible outcome.

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Leadership & culture

Leadership determines the direction and culture of the organisation. Leaders need to promote common goals and empower individuals at all levels to act.

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Management systems

Management systems, standards, procedures and practices, as well as industry and government requirements all have an implicit role in risk management.

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Risk Management Process

Communication and consultation Communication and consultation with internal and external stakeholders is the first step of the Risk Management Process. It is also essential to every step in the process.

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Risk Management Process

Establish the context

No matter what an organisation does, it interacts with a wider environment.

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Risk Management Process

Identify the risks A risk that has not been identified cannot be managed.

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Risk Management Process

Analyse the risks

The aim of risk analysis is to estimate likelihood and consequences in the context of any existing control measures.

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Risk Management Process

Evaluate the risks The output of risk evaluation is a prioritised list of risks for further action.

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Risk Management Process

Treat the risks The purpose of risk treatment is to change the risk to a level where the benefit exceeds the cost of treatment.

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Risk Management Process

Monitor and review The final step is to monitor the risk management strategy, plans and practices. Are there new risks? Will the risk treatments still be effective?

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Risk management is part of normal business

Risk management is a logical and systematic process which needs to be an integrated part of normal business.

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The greatest risk is to take no risk

“Without risk, there’s no discovery, there’s no new knowledge, there’s no bold adventure . ... The greatest risk is to take no risk”June Scobee Rodgers

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Further Information on Risk Management

• A DVD on this subject is available for staff to view. The DVD is approx 20 minutes in duration and it can be obtained from Andrew Wilsdon (contact tel no. 8412)

• For any further information you might want on Risk Management to help you in your work area please contact Andrew on 8412