Appendix H: Risk training slides (sample)

1. Appendix H:Risk training slides (sample)

2. What is Risk? “Risk is the effect of uncertainty on objectives” AS/NZS ISO31000:2009

3. Risk Management Risk Management is the process of identifying, analysing and evaluating risks with a view to ensuring the effective management of potential opportunities while reducing or avoiding adverse effects.

4. Risk Management Framework Provides: • Systematic approach to risk identification & management. • Consistent risk assessment criteria. • Accurate and concise risk information, for decisions. • Cost effective and efficient risk treatment strategies. • Ensure risk exposure remains within acceptable level.

5. Risk Management Framework

6. Risk Management: Benefits • Increase likelihood of achieving objectives • Improve quality of care • Protect staff, assets, property and reputation • Performance consistent with values • Support better business decision making • Meet compliance and government requirements

7. Prevention is better than the cure… Risk management is a proactive attempt to identify potential risks and incidents before they happen in order to develop prevention and response strategies.

8. Establish the Context This involves the identification of objectives, legislative and policy requirements and stakeholder expectations. • Strategic • Operations • Knowledge • People & Culture • Information Technology • Financial

9. Identify Risks Risk identification is a process of determining what can happen and how it can happen. • Audits or physical inspections • Brainstorming/Workshops • Incident and adverse outcome analysis • Claims analysis • Personal organisational experience • Focus group discussion

10. Risk Categories The organisation categorises risks according to the following risk categories: • Strategic • Financial • Operational • etc.

11. Typical Governance Structure Audit and Risk Committee Board CEO Executive Team ‘Risk Management Unit’ Divisions / Service Areas Staff

14. Risk Register

15. Analyse and Evaluate Risks Taking into account current controls and their effectiveness Risks are measured and assessed against two key criteria: • The likelihood of the event occurring. • The consequence or impact of an adverse event. The likelihood and consequence tables need to be tailored to the size and nature of the entity.

16. Likelihood and Consequence rating scales Likelihood Table Consequence Table *Insert own scales

17. Risk Rating Scales: Likelihood

18. OPTIONS Risk Treatment Options ACCEPT - Accept the level of risk REDUCE - Reduce the likelihood or consequence via improved control, contingency planning TRANSFER - Shift responsibility to external party (e.g. insurance) AVOID - Do not proceed with the activity

19. Risk Treatment Treatment Options: • Accept • Reduce • Transfer • Avoid

20. Controls • Identify controls that are in place • Assess control effectiveness

21. Risk Analysis – Likelihood/Consequence L = Low S = Significant M = Medium H = High

22. Risk Escalation

23. Risk Register Medium Rating

24. Key Organisational Risks

25. Questions????