CHARLES STURT UNIVERSITY

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CHARLES STURT UNIVERSITY

• RISK MANAGEMENT

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RISK MANAGEMENT

• Principles of Risk Management
• System of management

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RISK MANAGEMENT

• Principles of Risk Management
• Establish Risk Context
• Identify Risks
• Assess and Prioritize Risks
• Treat Risks
• Monitor and Review

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Principles of Risk Management

• Establish Risk Context
• For the University and specific areas
• What are the sources of risk?
• Which areas are impacted by the risks?
• What liabilities are faced?
• Who can provide guidance and help?

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Principles of Risk Management

• Risk Context
• Sources of Risk
• Areas of Impact
• Other Classifications of Risk
• Liabilities

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Principles of Risk Management

• Risk Context Sources of Risk
• Commercial and Legal
• Economic
• Natural Events
• Political Circumstances
• Technological and Technical
• Administrative and Management
• Human Behaviour and Activities

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Principles of Risk Management

• Risk Context Areas of Impact
• Assets and Resource Base
• Costs, Direct and Indirect
• Community and Environment
• People and Performance
• Timing and Schedules
• Reputation, Goodwill and Quality
• Organizational Behaviour

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Principles of Risk Management

• Risk Context Other Classifications
• Occupational Health and Safety
• Financial
• Environmental
• Employer Relations
• Equal Opportunity
• Plant and Facilities, including Security
• Administrative
• Technology

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Principles of Risk Management

• Risk Context Liabilities
• Professional Liability
• Personal and Public Liability
• Product Liability
• Environmental Liability
• Financial Liability
• Administrative Liability

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Principles of Risk Management

• Identify Risks
• Identify the
• What
• Why, and
• How
• things can arise that need further analysis

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Principles of Risk Management

• Assess Risks
• The assessment consists of 2 phases
• Analysis of Risk
• Evaluation and Prioritization of Risks

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Principles of Risk Management

• Analysis of Risk
• is carried out in terms of likelihood and
  consequences, based on existing controls.
• Analysis considers
• How likely is an event to happen?
• What are the potential consequences and their
  magnitude?
• Combined to produce estimated level of risk

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Principles of Risk Management

• Evaluate and Prioritize Risks
• Compare estimated level of risk to set criteria
  or standards.
• Rank risks to identify management priorities.
• Some level of risk may be acceptable

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Principles of Risk Management

• Treat Risks Treatment Options
• Reduce Likelihood
• Reduce Consequences
• Avoid Risk
• Transfer Risk in full or part

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Principles of Risk Management

• Treat Risks Treatment Options
• Risk Avoidance
• Vs
• Risk Aversion

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Principles of Risk Management

• Treat Risks Treatment Options
• Reduce or Control
• Likelihood

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Principles of Risk Management

• Treat Risks Treatment Options
• Reduce or Control
• Consequences

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Principles of Risk Management

• Treat Risks Treatment Options
• Transfer Risk
• Wholly or Partly

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Principles of Risk Management

• Treat Risks
• For each prioritized risk to be controlled,
• develop and implement a specific
• management action plan.

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Principles of Risk Management

• Monitor and Review
• Review the performance of each element
• in the Risk Management Process.
• Monitor the effect of risk treatments on
• identification, analysis and assessment
• phases for each risk.

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Principles of Risk Management

• Monitor and Review
• The entire process of risk management is
• iterative.
• For each stage, adequate records should
• be kept, sufficient to satisfy an audit.

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Principles of Risk Management

• Documentation
• to show the process is conducted properly
• to provide a record of risks
• for decision making of action plans
• to provide an accountability mechanism
• to provide an audit trail
• to facilitate continuing monitoring and review
• to communicate information

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Principles of Risk Management

• REVIEW
• Establish Risk Context
• Identify Risks
• Assess and Prioritize Risks
• Treat Risks
• Monitor and Review

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SYSTEMS APPROACH