Developing a Risk Management Plan Risk Management and assessment are integral components of running safe and sustainable events for the community. In assessing risk, we are looking to Identify, Analyse, Evaluate and Treat risk in an effort to minimise loss and injury. Principles of Risk Management A new Australian and New Zealand Risk Management Standard (AS/NZS ISO 31000:2009) was implemented in November 2009, providing principles and general guidelines to be considered when developing risk management frameworks. Under the Standard, the definition of risk has changed to “the effect of uncertainty on objectives”. Therefore, before you can begin to develop your Risk Management Plan, you need to have a clear understanding of what your event involves and what you want it to achieve. This includes: the purpose/objective of your event the activities and attractions you will be presenting the environment you’re presenting the event in, and the type and size of audience you believe your event will attract. This requires a consistent and systematic approach in recognising the activities which will be undertaken. It is important to get input from those individuals who have prior experience working on, or contributing to, your event as they can be an excellent source in identifying risk. This could include members of your committee, Board, staff, contractors or volunteers. By utilising the knowledge of those directly involved in your event, your plan will be inclusive, responsive and will protect the safety and broader values of your organisation. Developing a Risk Management Plan and conducting an assessment prior to your event means potential risks can be identified and then rated in accordance to: Likelihood (probability of occurrence), and Consequence (severity of damage) Controls and actions can then be taken to help reduce, or mitigate any potential risks, prior to your event taking place. Risk Assessment Process & Plan Delivery The following steps should be undertaken as part of the assessment of any event or activity: Identifying Risks Using the Risk Management Plan template as a guide, list the details of all potential risks and/or hazards you believe could occur at your event Analyse Risks Assess the Likelihood and Consequence of each risk (use 1: Risk Consequence and Table 2: Risk Likelihood to assist this process)
Apply a Risk Rating using Table 3: Risk Rating Matrix Evaluate Risks Identify what Action needs to be taken to eliminate or reduce the risk Allocate the Action to an individual who will be responsible for enforcing the control measures Allocate a timeframe for completion of the Action Record the Status of the Action up to its completion Treating Risks Consider what steps you can take to avoid or reduce the risk and the Actions/Controls you will put in place to achieve that Consider whether you can transfer the risk. This could be achieved through: - Purchasing insurance to cover a particular risk so that the liability passes to the insurer; - Putting specific clauses in hire contracts mitigating, or reducing your liability; - Getting suppliers or individuals to sign Disclaimers; - Installing Warning Signs to alert people to risks in the immediate surrounds Risk Consequence, Likelihood & Matrix Tables (AS/NZS ISO 31000:2009) The Standard provides guidance on the implementation of AS/NZS ISO and defines the concept of risk, explains how it comes about and describes the principles, framework and process that allow risk to be managed effectively. Using Tables 1 & 2, consider each of the risks you have identified and assess them against their Consequence and Likelihood. From there, see where that risk corresponds within the Risk Matrix in Table 3. This will result in your Risk Rating, which identifies whether your risk is Extreme, High, Medium or Low. Risks should be prioritised according to their level of risk. The higher the risk, the more diligent you will need to be in managing that risk, and in applying controls to minimise, or eliminate the risk altogether. 1: Risk Consequence CONSEQUENCE Level Descriptor Detail description 1 Insignificant No injuries, low loss.