Assessment Task 1 Instructions

Provide answers to all of the questions below:

1. Discuss the purpose of risk management standards. Include an example of a risk management standard in your answer.

A standard is how specifications and procedures are designed to make sure that methods and materials are fit for the purpose intended. They are documents that are published to make sure that the standards are consistent across Australia. Risk Management Standards set out a specific set of strategic processes which start with the overall aspirations and objectives of an organisation, and intend to help to identify risks and promote the mitigation of risks through best practice.  Standards are often designed and created by a number of agencies who are working together to promote common goals, to help to ensure that organisations carry out high-quality risk management processes. Risk management standards have been designed so that those who must carry out risk management processes have a guide to help them to work. These standards help to provide an international consensus on how to deal with certain risks, and they offer best practice advice on how to deal with others. Risk management standards help organisations to implement strategies which are tried and tested, and proven to work.

2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and each of the 11 principles.

1. Creates and protects value

the process of risk management assists decision makers to make informed choices, identify priorities and select the most appropriate action. AS/NZS ISO 31000:2009 Risk Management – Principles and Guidelines

4. Explicitly address uncertainty by identifying potential risks, agencies can implement controls and treatments to maximise the chance of gain while minimising the chance of loss.

7. Be tailored

an agency’s risk management framework needs to include its risk profile, as well as take into consideration its internal and external operating environment.

10. Be dynamic, iterative and responsive to change

The process of managing risk needs to be flexible. The challenging environment we operate in requires agencies to consider the context for managing risk as well as continuing to identify new risks that emerge, and make allowances for those risks that no longer exist. 11. Facilitate the continual improvement of organisations Agencies with a mature risk management culture are those that have invested resources over time and are able to demonstrate the continual achievement of their objectives.

• Statutory notices

• The details about incident notifications.

• Is the task necessary?

• Provide specialist equipment to assist in lifting/ carrying / moving people or objects

• Working environment is designed or modified to eliminate risks arising from manual handling e.g. altering layout of work area so as to avoid twisting, sideways bending or excessive reaching

• Provide mechanical aids, or use team lifting

6. List three examples of the impact of risks for a workplace if risks are not identified or actioned.

Risk identification should be performed early in the and should continue until the project is completed. Risk identification is not an exact science and therefore should be an ongoing process throughout the project, especially as it enters new phase and as new personnel and contractors bring different experiences and viewpoints to risk identification.

3. Determine the likelihood of a negative consequence or an opportunity.

4. Estimate the level of risk by combining consequence and likelihood.

• Quantitative.

The most common type of risk analysis is the qualitative method. The type of analysis chosen will be based upon the area of risk being analyzed. Qualitative analysis uses scales to analyse the likelihood of an event occurring and its consequences. These can be used to analyse different risks in different circumstances by simply varying, adapting and adjusting them to suit. When the likelihood and consequence are put together, you have an example of the analysis matrix. Risk analyses are usually aimed at the negative consequence of risk. The consequence measure therefore reflects the losses and undesired outcome that might arise. However, risk management is increasingly being applied to identify and prioritise opportunities, as the risk associated with not exploiting an opportunity or embarking on a particular business strategy can be high. In many instances, the ‘upside risks’ are potentially more serious than the risk that bad events will occur (i.e. the ‘downside risks’).

• Internal & external reviews Reviews undertaken to evaluate the suitability, adequacy and effectiveness of the department’s systems, and to look for improvement opportunities.

9. Describe three examples of tools or techniques that a company could use to identify risks as part of a risk assessment process.

10. There are 4 types of risk control:

    1. Accept Risk

    A risk may be reduced to zero. Normally the only way to accomplish this is to cease the activity that generates the risk.

    4. Transfer Risk

• The elimination of hazards is a very effective control measure. The best time in which to use elimination is at the design stage of a process, equipment or plant. This is referred to as a safe design; these practices are applied all at once and have a positive impact on health and safety in the workplace. When no hazards exist, no risk, injury or illness exists.

• When elimination is not appropriate, then your employer should minimise the risk by substituting or modifying he hazard. Substitution or modification of a hazard ensures that the hazard is minimised. Substitution or modification should only be considered when risk to employees has been identified and when the changes will decrease the level of risk for the person performing the task.