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Risk & Opportunity Management Putting theory into Practice

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

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Risk & Opportunity Management Putting theory into Practice

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  1. Risk & Opportunity Management Putting theory into Practice Susy Austin MQM Business Consultant

  2. 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

  3. Risk Management Standard • 1995 AS/NZ 4360 • 1999 Australian Standard revised AS/NZ 4360 1999

  4. What is a Risk?AS/NZ 4360 • the chance of something happening that will impact on the objectives of an organisation

  5. What is Risk Management? • The systems and processes in place to manage adverse events and also potential opportunities

  6. Risk Management Should examine the entire spectrum of risk • Political or community perception • Financial • Human Resource • Environment • Public liability, safety

  7. Establish the Context Start here Identify Risks RISK CYCLE Monitor / Review Identify the controls Identity Consequences Identify causes & consequences MR Action Plan Action Plan Apply a risk rating

  8. 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

  9. Getting started: • Right people • Start small, simple • Brainstorm • Use tools • Logical step by step AS/NZS 4360

  10. Priority Criteria • Fatalities / Injuries • Damage to Assets • Damage to the Environment • Damage to Reputation / Credibility • Damage to Private Property • Class Action

  11. Risk Management Process • Context • Risk identification “What could go wrong?” “How and why could it happen?”

  12. 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)

  13. 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

  14. Sunshine Park TrailRisk Management ReportDate: September 2004

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