Risk Management Workbook

Unit 6

Handout 6.1.1

Risk Management Planning Workbook

Handout 6.1.1 Risk Management Planning Workbook This handout supports study and skills application in BSBRSK501A Manage Risk. The handout is a complete workbook. It will form the basis for working through a formal risk management process. By completing each Tool you will build all the components required for a basic Risk Management Plan. While Risk Management Plans may vary in terms of focus and content across different organisations and operational areas, this workbook includes standard tools and templates. In discussions with your facilitator or assessor you may choose to substitute tools in this workbook with alternatives, for instance ones you may use in your organisation. If you are being formally assessed for BSBRSK501A Manage Risk the submission of this workbook will provide evidence as to your competence.

There are ten tools and templates in this workbook.

Handout 6.1.1 Risk Management Planning Workbook .........................................................................................................1 Tool 1 - Goal and purpose and the alignment of risk categories and criteria..........................................................................3 Targeting..................................................................................................................................................................................................3 Statements or description.........................................................................................................................................................................3 Vision & Values.......................................................................................................................................................................................3 Goals........................................................................................................................................................................................................3 Describe the risk......................................................................................................................................................................................3 Risk Category...........................................................................................................................................................................................3 Criteria.....................................................................................................................................................................................................3 Tool 2 - Stakeholder identification and ranking template.........................................................................................................4 Tool 3 - Risk register template.................................................................................................................................................5 Tool 4 - Task Analysis and Risk Identification Tool.................................................................................................................6 Tool 5 - SWOT Analysis..........................................................................................................................................................9 Tool 6 - PEST Analysis..........................................................................................................................................................10

Unit 6

Handout 6.1.1

Risk Management Planning Workbook

Tool 7 - Identifying and Analysing Risks................................................................................................................................12 Tool 8 - Risk Assessment Matrix............................................................................................................................................13 Tool 9 - Risk Treatment Schedule and Action Plan...............................................................................................................14 Tool 10 – Risk Management Plan Request Form..................................................................................................................15 Green..................................................................................................................................................................................................16 (Controlled)........................................................................................................................................................................................16 Yellow ...............................................................................................................................................................................................16 (Caution)............................................................................................................................................................................................16 Red.....................................................................................................................................................................................................16 (Critical).............................................................................................................................................................................................16

Unit 6

Handout 6.1.1

Risk Management Planning Workbook

Tool 1 - Goal and purpose and the alignment of risk categories and criteria Targeting Vision & Values Including vision statement and any supporting values that the risk will impact. Goals Including strategy, products, services, profitability, etc. likely to be impacted by the risk.

Describe the risk Including how leaders are measuring goals (KPI) or impact. Risk Category List the risk category or elements of operations the risk will impact. Criteria Determine the likely impact of this level of risk if it is not treated.

Statements or description

Unit 6

Handout 6.1.1

Risk Management Planning Workbook

Tool 2 - Stakeholder identification and ranking template Team/Project/Operational Area: Description of risk in brief:

Stakeholder

Date Issued: Responsible officer

Power*

Version: Contact:

* Use the Power and Influence Grid provided in your study guide to rank each stakeholder.

Interest*

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Handout 6.1.1

Risk Management Planning Workbook

Tool 3 - Risk register template Organisation: Date Issued:

Compiled by:

Contact details:

ReferenceRisk

Area:

The risk

What can happen? (event or type)

How can it happen? (source)

What can happen? (impact)

Existing controls? Y = Yes N = No

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Handout 6.1.1

Risk Management Planning Workbook

Tool 4 - Task Analysis and Risk Identification Tool Company Name: Position:

Function/ Department:

Job Identification:

Job Classification:

Assessor/Reviewer:

Date of analysis:

Competency or Role: Description: This role refers to the preparation and firing of shot in an open cut mining operation. Job Steps

Risk

Possible impact

Notes on risk

H=High

(ie. Affects safety, process, people, customers, etc.)

M=Moderate L=Low

1.

4.

7.

10.

Handout 6.1.1

Unit 6

Risk Management Planning Workbook

Example: The following job has five major technical competencies/roles (1. Site preparation; 2. Shot firing; 3. Dangerous goods handling and transportation; 4. Safety; 5. Documentation and reporting). The Shot firing role has been examined by job steps for risks. Note: This is only an example. Greater Eagle Mining Position:

Mining shot firer (Open Cut)

Function/ Department: NT Mineral extraction

Job Identification: MIN233 Assessor/Reviewer: Peter Bloggs

Job Classification: Grade 5 Date of analysis: 11/10/2010

Competency or Role: 2. Shot firing – open cut Description: This role refers to the preparation and firing of shot in an open cut mining operation. Job Steps

Risk

Possible importance H=High

Notes on risk (ie. Ability to address and possible impact - safety, process, people, customers, etc.)

M=Moderate L=Low

1.

5.

9.

Check drill holes

Check and place shot

Prepare safety equipment

13. Check equipment and prepare for firing

Drill holes are not deep enough

H

Affect efficiency and success of firing

Drill holes have obstructions

M

May affect efficiency and success of firing

Drill holes are not placed correctly

H

Affect efficiency and success of firing

Size of holes is incorrect

H

Affect positioning of the shot

Shots have not been watered before scaling

H

Affect efficiency and success of firing

Incorrect loading

H

Affect efficiency and success of firing

Incorrect placement of loads in shot holes

H

Affect efficiency and success of firing

Issues affecting scaling are incorrectly determined

H

Incorrect personal protective equipment worn

M

Affect efficiency and success of firing, may cause safety concerns for personnel (placement from shot) Affects personal safety

Confirm all on site personnel correctly equipped

H

Affects safety of personnel

Personnel inappropriately equipped to deal with possible exposure to carbon monoxide and oxides of nitrogen Duration or delay in firing may cause personnel to have longer exposure to the sun Shot lines are not all checked

H

Affects safety of personnel and can cause death

L-M H

Affects safety of personnel Affect efficiency and success of firing

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Handout 6.1.1

16. Undertake warning and shot firing communication to site and compliance requirements

20. Fire shot

Risk Management Planning Workbook

Sequence of firing is incorrect

H

Affect efficiency and success of firing

Lines are exposed to elements that may affect signal

M

Affect efficiency and success of firing

Communications devices are not working

H

Warning not done in adequate time

H

Not all relevant personnel are aware of shot firing

H

Hazard communication is not understood by personnel on site Signal is not received by detonators

M

Affect efficiency of firing and safety of personnel Affects safety of personnel and can cause death Affects safety of personnel and can cause death Affect efficiency of firing and safety of personnel Affect efficiency and success of firing

Signal is triggered early or late

H

H

Affect efficiency of firing and safety of personnel

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Handout 6.1.1

Tool 5 - SWOT Analysis

Risk Management Planning Workbook

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Handout 6.1.1

Tool 6 - PEST Analysis

Risk Management Planning Workbook

Unit 6

Handout 6.1.1

Risk Management Planning Workbook

Example: The following is a ‘sanitised’ example of a PEST analysis completed by an Australian public health care organisation in mid 2009. The organisation supports public health services in a number of Australian states and in New Zealand.

Handout 6.1.1

Unit 6

Risk Management Planning Workbook

Compiled by:

Date:

Function/Activity:

Reviewed by:

Date:

Impact What will happen/ consequences?

Current control Strategies and their effectiveness (A) –Adequate (M) – Moderate (I) – Indadequate

Risk Analysis Risk Level

Source How can this Happen?

Consequence

The Risk What Can Happen?

Likelihood

Risk Reference

Organisation:

Risk Priority

Acceptability (A/U)

Tool 7 - Identifying and Analysing Risks

Handout 6.1.1

Unit 6

Risk Management Planning Workbook

Tool 8 - Risk Assessment Matrix Category ↓ E – Extreme risk – detailed action plan required H - High risk – needs senior management attention M – Medium risk – specify management responsibility L – Low risk – manage by routine procedures High or Extreme risks must be reported to Senior Management and require detailed treatment plans to reduce the risk to Low or Medium.

Likelihood →→→

Probability: >1 in 10 1 in 10 - 100 1 in 100 – 1,000 1 in 1,000 – 10,000 1 in 10,000 – 100,000

Consequence

Life threatening injury or multiple serious injuries causing hospitalisation. Intense public, political and media scrutiny. Eg: front page headlines, TV, etc.

Assembly inquiry or Commission of inquiry or adverse national media.

Strategies not consistent with Government’s agenda. Trends show service is degraded.

Critical system failure, bad policy advice or ongoing noncompliance. Business severely affected.

Major breach with penalty and possible litigation

Serious breach, litigation occurs, and investigation by professional, regulatory or legislative body

1% of Budget or $5M

5

Very likely

M

H

H

E

E

4

Likely

L

M

H

H

E

3

Possible

L

M

M

H

H

2

Unlikely

L

L

M

M

H

1

Highly unlikely

L

L

L

L

M

(Adapted from Standards Australia Risk Management AS/NZS 4360: 2004)

Handout 6.1.1

Unit 6

Risk Management Planning Workbook

Tool 9 - Risk Treatment Schedule and Action Plan Compiled by:

Date:

Function/Activity:

Reviewed by:

Date:

Is the Treatment to be Implemented (Y/N)

Risk Analysis

Responsible Person Current Level

Result of cost-benefit analysis A: accept B: reject

Consequence

Possible Treatment Options

Likelihood

Risk Reference

Organisation:

Timetable For implementation, Start – Finish date

Unit 6

Handout 6.1.1

Risk Management Planning Workbook

Tool 10 – Risk Management Plan Request Form Organisation:

Risk Reference:

Level of Risk

Operational Area- Context:

Risk Title:

Low Risk

Moderate Risks

High Risk

Extreme Risk

Proposed By: Reviewed By: Date Received:

Allocate Request Number:

Proposed Treatment Description: Risk Category: People [ ]

Safety [ ]

Business process & systems [ ]

Procedural [ ]

Finance [ ]

Other [ ] specify:

Consequences if risk not treated: {Notes on how issue will impact context}

Treatment Objectives : {Notes on outcomes treatment and control will bring to the organisation or operational area}

1. 2. 3. 4. 5. 6.

Compliance [ ]

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Handout 6.1.1

Risk Management Planning Workbook

Review: Reviewer comments: {Notes by reviewer of this treatment}

Recommendations: {Reviewer’s recommendations} Date review completed: {MM/DD/YYYY} Analysis: Risk assessment completed?

No [ ]

Yes [ ]

Cost: Benefit Analysis completed?

No [ ]

Yes [ ]

Supporting documents attached?

No [ ]

Yes [ ]

Planned Milestones for Monitoring and Review List any milestones that are late as well as deliverables that can be monitored in the planned timeframe. Milestone

* Status indicator: {Used to report monitor and review of treatment progress}

Approved Schedule

Actual

Current Forecast

{dd/mm/yyyy}

{dd/mm/yyyy}

{dd/mm/yyyy}

Green

Yellow

Red

(Controlled)

(Caution)

(Critical)

Estimate of Additional Effort: (insert rows as needed) Resources Required

Work Days/Costs

Status*

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Handout 6.1.1

Risk Management Planning Workbook

Management Action: {Senior management approval required for High and Extreme level risks}

Accept

Recommendation status:

Reject Defer

[ ] [ ] [ ]

Approved Commencement Date: {MM/DD/YYYY}

Planned Completion Date: {MM/DD/YYYY}

Assigned to: Name

Title

Date (MM/DD/YYYY)

Approving Manager: Signed….

I have reviewed the information contained in this Risk Management Plan Request and agree.

Date: _____/_______/______

Comment