Presentation by Bruce Couch, Paul Niethe

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Risk Management
Presentation by Bruce Couch, Paul Niethe Tim
Perry to Association of Tourist
Railways Queensland
8 May 2004
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Presentation Agenda

• Basic principles of risk management and some
  examples
• Practical workshop
• Questions

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• Risk
• Residual Risk the remaining level of risk after
  risk treatment measures have been taken
• Risk Control the implementation of policies,
  standards, procedures and physical changes to
  eliminate or minimise adverse risks
• Risk Identification the process of determining
  what can happen, why and how
• Risk Management the culture, processes and
  structures that are directed towards the
  effective management of potential opportunities
  and adverse effects

Definitions AS 4360 Risk Management
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Definitions AS 4360 Risk Management

• ALARP As Low As Reasonably Practicable
• Consequence - the outcome of an event expressed
  qualitatively or quantitatively, being a loss,
  injury, disadvantage or gain. There may be a
  range of possible outcomes associated with an
  event.
• Hazard - a source of potential harm or a
  situation with a potential to cause loss
• Likelihood - used as a qualitative description of
  probability or frequency

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Definitions AS 4360 Risk Management

• Loss - any negative consequence, financial or
  otherwise
• Monitor - to check, supervise, observe
  critically, or record the progress of an
  activity, action or system on a regular basis in
  order to identify change

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QT Requirements

• Risk management Safety Management System
• Does not stipulate type of risk management
  process
• Based on accepted practice
• Within safety management system
• Allocation of responsibility for risk
• Process undertaken to identify risks
• Process to rank risks and management
• Communication within the organisation
• Monitor and review process
• Record of the process

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• ESTABLISH THE CONTEXT
• IDENTIFY RISKS
• ANALYSE RISKS
• EVALUATE RISKS
• TREAT RISKS
• MONITOR AND REVIEW
• COMMUNICATE AND CONSULT

Risk Management Overview
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• ESTABLISH THE CONTEXT
• Set the scope for the risk management process by
  defining the basic parameters within which risks
  must be managed
• Determine the framework of an organisations
  strategic, organisational and risk management
  context
• Qualitative quantitative risk assessment

Risk Management Overview
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• IDENTIFY RISKS
• Checklists
• Judgement based on experience and records
• Having the right people undertake the risk
  assessment
• Flow charts
• Brainstorming
• Systems analysis
• Accident investigation findings Waterfall
• Involvement of other affected parties
• ATRQ

Risk Management Overview
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• ANALYSE RISKS
• Consider the sources of risk and the consequences
  and likelihood that those consequences may occur
• Factors which affect risk and likelihood may be
  identified
• Risk is analysed by combining estimates of
  consequences and likelihood in the context of
  existing control measures
• Determine existing controls and assess their
  strengths and weaknesses

Risk Management Overview
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• ANALYSE RISKS
• Determine consequences and likelihoods to provide
  a level of risk using
• Past records
• Experience
• Industry practice and experience
• Relevant published literature
• Specialist and expert judgements

Risk Management Overview
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• ANALYSE RISKS
• Types of analysis
• Qualitative analysis
• Semi-quantitative analysis
• Quantitative analysis

Risk Management Overview
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• ANALYSE RISKS
• Types of analysis
• Qualitative analysis
• Using word form or descriptive scales to describe
  the magnitude of potential consequences and the
  likelihood that those consequences will occur

Risk Management Overview
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• ANALYSE RISKS
• Types of analysis
• Semi-quantitative analysis
• The descriptive scales used above are given
  values

Risk Management Overview
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• ANALYSE RISKS
• Types of analysis
• Quantitative analysis
• Uses numerical values for both consequences and
  likelihood

Risk Management Overview
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• EVALUATE RISKS
• Comparing the level of risk found during the
  analysis process with previously established risk
  criteria
• If the results fall into low or acceptable risk
  categories they may be accepted with minimal
  further treatment
• If the risks do not fall into the low or
  acceptable risk category, they should be treated

Risk Management Overview
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• TREAT RISKS
• Eliminate the risk
• Substitute less hazardous material, process or
  equipment
• Engineering
• Introduce administrative controls
• Use Personal Protective Equipment

Risk Management Overview
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• TREAT RISKS Elimination Considerations
• Avoid the risk
• May mean discontinuing dangerous work practices
• Transfer the risk
• Involves another party bearing or sharing some
  part of the risk
• (new risk that the other party will manage the
  risk)
• OR Retain the Risk

Risk Management Overview
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• TREAT RISKS Substitution Considerations
• Substitute less hazardous material, process or
  equipment
• Replacing the hazard with one that presents a
  lower (and more manageable) risk

Risk Management Overview
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• TREAT RISKS Engineering Considerations
• Redesign equipment or work processes
• Change the design of the workplace or equipment

Risk Management Overview
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• TREAT RISKS Administrative Control
  Considerations
• Reduce or control the likelihood of the
  occurrence
• Implement new or redesigned work processes
• Audit and compliance programs
• Preventative maintenance
• Training
• Supervision
• Organisational arrangements

Risk Management Overview
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• TREAT RISKS Administrative Control
  Considerations
• Reduce or control the consequences of the
  occurrence
• Implement new or redesigned work processes
• Contingency planning
• Design features
• Disaster recovery plans
• Minimising exposure to sources of risk

Risk Management Overview
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• TREAT RISKS Personal Protective Equipment (PPE)
  Considerations
• PPE is used as a last resort

Risk Management Overview
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• MONITOR AND REVIEW
• On implementation of a control/controls
• Accidents/incidents
• Legislation changes
• Operational changes
• Audits internal or external
• Formal review set date

Risk Management Overview
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• COMMUNICATE AND CONSULT
• How does your staff/volunteers/contractors have
  input into the process?
• How do your staff/volunteers/contractors know
  about risk process formally or informally?
• Who else needs to know about your risks?

Risk Management Overview
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Questions
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Practical Workshop
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Questions