Risky Business

Overview

Risk Management Concepts

Tools Available

Application of Risk Management Concepts

What is Risk Management

“What can happen?”

“What are the consequences, +ve or -ve?”

“What can we do to avoid the -ve and achieve +ve?”

Benefits of Risk Management

Less costly surprises or poor outcomes.

Improved service delivery.

Greater accountability and responsibility for decision making.

Risk Management Process

Risk Assessment Consequences

Rating Descriptor Description

5 Catastrophic Asset destruction >$10M National TV / news coverage

4 Major Loss $1M to $10M National TV / news coverage

3 Moderate Loss of asset $50,000 to $1M Local TV / media exposure

2 Minor Loss $5,000 to $50,000

1 Insignificant Losses <$5,000

Risk AssessmentProbability

Rating Descriptor

Description

5 Almost Certain

>10 times per year

4 Likely 1 to 10 times per year

3 Moderate Once every 2-5 years

2 Unlikely Once every 5-20 years

1 Rare < every 20 years

Risk AssessmentMatrix

Consequences

Insignificant Minor Moderate Major Catastrophic

Probability 1 2 3 4 5

Almost Certain (5) M H H E E

Likely (4) M M H H E

Moderate (3) L M M H H

Unlikely (2) L L M M H

Rare (1) L L L M M

Legend and suggested approaches to risk treatment

E Extreme risk: must be managed by senior management with a detailed plan

H High risk: senior management attention is required and management responsibility specified

M Moderate risk: manage by specific monitoring or response procedures

L Low risk: manage by routine procedures

Risk Management ToolsRisk Register Template

Ref Risk Likely Consequences

Adequacy of Existing

Controls (A = Adequate; I = Inadequate; N

= Not Assessed)

Risk Category*

Conse-quence Score (1-5)

Proba-bility Score (1-5)

Overall Risk

Score (5-25)

Risk Rating * (L, M, H,

E)

2 Failure to respond to emerging training needs

Sub-optimal performance of staff

Long term damage to DoE’s reputation

Higher costs in the long run if problem isn’t addressed now

I Resource Management 2 5 10 H

1 Personal injury to client due to facility failure

DoE could lose reputation as safe service provider.

Cost of litigation.

Cost of rectifying damage and addressing similar faults at all other DoE facilities.

A

Resource Management & Duty of Care

2 3 6 M

3 Death of student during outdoor activities

Loss of reputation as a safe provider of services

Cost of Litigation

Curtailment of similar activities

Major national news coverage

I Duty of Care & Managing Relationships

5 1 5 M

Risk Management ToolsDPAC Project Management Site

Project Management - Tasmanian State Government Resource Kits

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Risk Management Resource Kit

This Resource Kit contains information for project participants. It contains information you

may use to assist you in managing your project risks.

Developing a Risk Management Plan Fact Sheet

Frequently Asked Questions

Project Risk Register Template

Tasmanian Government Project Management Guidelines - Section 6: Risk Management

Examples held in the Project Management Knowledge Base may also be a useful resource

to access.

Examples of Risk Registers & Management Plans

The URL for this page is http://www.projectmanagement.tas.gov.au/res_kits/pm_riskmresourcekit.htm

Application of Risk Management

Organisation Branch Project Event

Questions ?