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Risk Management Lessons from Outside the United States

Risk Management Lessons from Outside the United States. Session 6 Slide Deck. Session Objectives. 6.1 Consider how a National Risk Management Standard Led to an International Standard 6.2 Discuss the ADPC Community-Based Risk Reduction Process

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Risk Management Lessons from Outside the United States

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  1. Risk Management Lessons from Outside the United States Session 6 Slide Deck Session 6

  2. Session Objectives 6.1 Consider how a National Risk Management Standard Led to an International Standard 6.2 Discuss the ADPC Community-Based Risk Reduction Process 6.3 Discuss Various Risk Assessment Techniques Utilized by UN-HABITAT Session 6

  3. Australia and New Zealand • Similar in terms of: • Geography • Social makeup • Political frameworks • Agendas (public, policy) • Collaborate on risk management efforts Session 6

  4. Risk Management: Australia A systematic process that produces a range of measures that contribute to the well-being of communities and the environment. Session 6

  5. Risk Management: New Zealand The process of considering the social, economic and political factors involved in risk analysis; determining the acceptability of damage and/or disruption that could result from an event; and then deciding what actions should be taken to minimize likely damage or disruption. Session 6

  6. AS/NZS 4360 • 1993: New South Wales Government Risk Management Guidelines • Joint Standards Australia and Standards New Zealand Technical Committee • AS/NZS 4360:1995 • AS/NZS 4360:2004 • Communication • Review/Improve Session 6

  7. AS/NZS RM Methodology • Risk management: • “a process that identifies the level of tolerance a group has for a specific risk” • used to decide “what to do where risk has been determined to exist” • At the center is Communication • A ‘two-way process” Session 6

  8. AS/NZS Risk Communication • Acknowledge presence of multiple potential stakeholders • Identify key stakeholders • Identify the issues and commence consultation process • Begin stakeholder analysis and refine through dialogue • Establish representation group of technical and stakeholder groups • Assess stakeholder acceptance of risk including implications of treating or not treating risk/s • Establish stakeholder acceptability criteria • Develop risk communication strategy Session 6

  9. AS/NZS RM Process • Establish the Context • Identify Risks • Analyze Risks • Assess and Prioritize Risks • Treat Risks • Risk Acceptance Session 6

  10. Establish the Context • Establishes the strategic, organizational and risk management contexts in which the process will take place • Criteria against which risk measured are established • Structure of analysis defined • Involves the following steps: • Define the problem • Identify stakeholders • Developing risk evaluation criteria • Defining key elements Session 6

  11. Identify Risks • Identify what, why and how things can arise as the basis of further analysis • Characteristics and interaction of the hazards, the community, and the environment that form the basis of the problem to be solved • Hazard analysis • Vulnerability analysis Session 6

  12. Analyze Risks • How likely is the event to happen and what are the potential consequences and their magnitude • Determine risk controls • Analyze likelihood • Analyze consequence Session 6

  13. Assess and Prioritize Risk • Risk assessment = “the method used to define the likelihood of harm (probability x consequence) coming to an individual, group, or community or the occurrence of an event as a result of exposure to a sustenance or a situation.” • Risks ranked to identify management priorities Session 6

  14. Treat Risks • Accept and monitor low-priority risks • For other risks develop and implement a specific management plan that includes consideration of funding • In emergency management, this is typically referred to as mitigation Session 6

  15. Risk Acceptance • Develop public awareness programs • Evaluate implementation process Session 6

  16. ISO 31000:2009 • International Organisation for Standardisation • Supported by Australia and New Zealand • First international risk management standard • Similar to AS/NZS 4360:2004 Session 6

  17. ISO 31000:2009 Diagram Session 6

  18. AS/NZS / ISO Differences • Principles of Risk Management • Risk management creates and protects value • Risk management is an integral part of all organizational processes • Risk management is part of decision making • Risk management explicitly addresses uncertainty • Risk management is systematic, structured, and timely • Risk management is based on the best available information • Risk management is tailored • Others • Defines risk to be “the effect of uncertainty on objectives” • Provides guidance on how RM might exist within the organization or agency performing it Session 6

  19. ADPC • Asian Disaster Preparedness Center • Regional emergency management technical assistance and training resource center • Created in response to an expressed need to assist countries in the region with formulating policies and developing capabilities in all aspects of disaster management Session 6

  20. Community-Based DM • Top-down RM resulted in ‘poorer outcomes’ • Vulnerable communities most negatively affected • Must involve vulnerable people themselves • Communities feel they are the best judges of their own vulnerability • Aim: reduce vulnerabilities and strengthen people’s capacity to cope with hazards Session 6

  21. Participatory Approach • Local participatory method works well because the community members are not only the primary drivers in the process, but also the beneficiaries • Community participation vs. community involvement Session 6

  22. Essential Features • The community has a central role in long term and short term disaster management • Disaster risk or vulnerability reduction is the foundation of CBDM • Risk management is linked to the development process • Community as a key resource in disaster risk reduction • Application of multi-sectoral and multi-disciplinary approaches • CBDM as an involving and dynamic framework Session 6

  23. Tools and Methods Session 6

  24. Strategies • Self insurance • Conducting seasonally based action • Encouraging long-term investments • Strengthening social and organizational support structures • Making health and sanitation services available at the community level • Conducting advocacy and campaigns Session 6

  25. The ADPC Process • Foundation is Disaster Risk Reduction • Six sequential stages • Initiating the disaster risk reduction process • Community Profiling • Risk Assessment • Formulation of Disaster Risk Reduction Plan • Implementation and Monitoring • Evaluation and Feedback Session 6

  26. UN-HABITAT • Mandated by the UN General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all • To help policy-makers and local communities get to grips with the human settlements and urban issues and find workable, lasting solutions • Assessing the Risk of habitats and settlements is central to the UN-HABITAT Disaster and Risk Management function. Session 6

  27. UN-HABITAT Techniques • Access Model • Computer Assisted Techniques • Disaster Risk Indexing • Event Tree Analysis • Failure Modes and Effects Analysis • Fault Tree Analysis • Historical Analysis • Impact Analysis • Participatory Analysis • Pressure and Release Model • Remote Sensing • Social Survey Session 6

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