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29th October 2007
Risk Management in Australia
Dr. Graeme Studdert
DBA. MBA. EngExec.
29th October 2007
•Overview
•Risk Management in Australia
•Business Risk and the Regulatory Environment
•Business Risk - What you need to do!
•Recent events in Australia
•Self help resources
Agenda
29th October 2007
Overview
Historically an “Ad Hoc” process Australian Standard AS4360 OH&S ACT 2000 Mandatory obligations of employers Obligations of employees
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Risk Management in Australia
Three Tiers of Government Federal State or Territory Local
OHS Act 2000 OHS Regulations Australian Standards
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Australian Standard AS4360 -Limitations
• Available for many years but not mandated
• Technically focused
• Basic model which exhibits limitations when “other” business systems are considered
• Relies of significant experience of the risk assessor
• No external stakeholder participation
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Regulatory Environment
NSW OH&S Act 2000
Division 1 General duties Duties of employers An employer must ensure the health, safety and welfare at work of all the
employees of the employer.That duty extends (without limitation) to the following:
ensuring that any premises controlled by the employer where the employees work (and the means of access to or exit from the premises) are safe and without risks to health, ensuring that any plant or substance provided for use by the employees at work is safe and without risks to health when properly used, ensuring that systems of work and the working environment of the employees are safe and without risks to health, providing such information, instruction, training and supervision as may be necessary to ensure the employees health and safety at work, providing adequate facilities for the welfare of the employees at work.
29th October 2007
Accident at the Workplace
Organisation
Directors
Fined
Responsible for Corporate matters
Senior Managers Check Organisational Chart for operational matters
Operational Manager
Refer to the Chain of Command
?
Regulatory Environment
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If a corporation contravenes, whether by act or omission, any provision of the OHS Act 2000 or the OHS Regulation 2001, each director of the corporation, and each person concerned in the management of the corporation, is taken to have contravened the same provision(§26)
First offence Corporation $550,000 Manager $55,000 Employee $3,300
Subsequent offence Corporation $825,000 Manager $82,500 Employee $4,950
Important to appreciate corporation need not be found guilty whilst directors and managers could face prosecution
corporation may be found not guilty whilst directors and managers could be found guilty
Regulatory Environment
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Hazard Identification What has the potential to an adverse outcome?
Consultation with Staff To what extend can the views of staff be heard?
Risk AssessmentWhat is the probability of the hazard occurring?
Risk Management Proceduresare there documented Standard Operating Procedures(SOPs)?
InformationWhat information needs to be given to staff aboutthe hazards and risk assessment
OH&S Act 2000 – Ten steps
29th October 2007
Instruction and TrainingWhat skills and competencies do staff require to manage the risks?
Supervision To what extend are the SOPs applied and enforced?
MonitoringWhat measures are in place to ensure the system is working
ReviewAre the desired safety outcomes being achieved?
Revise as requires
What additional steps need to be taken to achieve the targeted safety outcomes?
OH&S Act 2000 – Ten steps
29th October 2007
Part 2 - Duties relating to health, safety and welfare at workPart 2 - Duties relating to health, safety and welfare at work8(2) Others at workplace8(2) Others at workplaceAn employer must ensure that people (other than the employees of the employer) are
not exposed to risks to their health or safety arising from the conduct of the employer’s undertaking while they are at the employer’s place of work.
Place of Work means premises where persons work.
Premises includes any place, and in particular includes:Any land, building or part of any building, orAny vehicle, vessel or aircraft, orAny installation on land, on the bed of any waters or floating on any waters, orAny tent or moveable structure.
OH&S Act in NSW
29th October 2007
Accidents are not clever things
• The directors, supervisors and employees of the company could be liable for this guys action.
• All members of staff have an obligation under OH&S to ensure the health and safety of their colleagues and the general public whilst at work.
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Pathway to an incident
InitiatingEvent
PreventionPrevention MitigationMitigation
KnownHazard
Loss ofLife / Asset
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The Regulatory Environment
Business risk Review of AS4360 model Technical risk Financial risk Commercial risk Operational risk OHSE risk OH&S Act mandating risk assessment Development of a New model for risk identification
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Ensure all Managers are aware of the implication
Prepare a Plan to Inform all staff
Conduct Briefing Session
for all members & staff
Implementing the OHS Act 2000
Need to ensure that all informed of
major changes ?
Document and record the
attendance of staff?
Consider Regular
Contractors etc
Review Org Structure to establish Workgroups
Ensure all workgroups
are represented
Set up arrangements to draft
Risk Mgt Manual
Prepare Risk Mgt Manual
OH&S Actin NSW
29th October 2007
Risk Identification
Traditionally risk identification is carried out by the technical staff at the WBS.
Generally the focus is placed on the technical aspects of the project.
The “other” business systems are often not considered.
This exposes the project to an unnecessary level of risk.
29th October 2007
SRIM
Systems Risk Identification Model
Traditionally risk identification is carried out by the technical staff at the WBS.
Generally the focus is placed on the technical aspects of the project.
The “other” business systems are often not considered.
This exposes the project to an unnecessary level of risk.
29th October 2007
Risky Business
Probability-Severity Table Rate the probability of the event Score the Severity of that event Determine a Risk “Rating” Having rated the risk, mitigation
techniques can be selected. The mitigated risks can then be re-assessed And a new risk “Rating” established
RISKSeverity A B C D E
1 1 2 5 7 112 3 5 8 12 163 6 9 13 17 204 10 14 18 21 235 15 19 22 24 25
Probability
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LikelihoodRisk Factor
Matrix: Rare Unlikely Moderate Likely AlmostCertain
Catastrophic
Rating 5
High
15
Extreme
19
Extreme
22
Extreme
24
Extreme
25
Major
Rating 4
High
10
High
14
Extreme
18
Extreme
21
Extreme
23
Moderate
Rating 3
Medium
6
Medium
9
High
13
High
17
Extreme
20
Minor
Rating 2
Low
3
Low
5
Medium
8
High
12
High
16
Insignificant
Rating 1
Low
1
Low
2
Low
4
Medium
7
High
11
Sev
erity
of C
onse
quen
ces
Risk Factor Matrix
Risky Business
Individual tables can bedeveloped to suit differentBusinesses and risk profiles
Low (1) to Extreme (25)
29th October 2007
Recent events in Australia Newcastle Floods June 2007 Continuous heavy rain and high winds
29th October 2007
Recent events in Australia Weather warnings were issued prior to the storms 64 vessels complied and moved out to sea Three choose to ignore the warnings Pasha Bulka runs aground in Newcastle
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Sydney
29th October 2007
What you need to do!
If you intend to conduct business in Australia you need to...
Be aware there are significant penalties for non conformance
Inform yourself of your obligations Develop your own “system” Contract a specialist in the field
If you already have a business in Australia you need to...
Ensure your current system is up-to-date Audit your “system” Maintain accurate records Possible to Self Insuring
29th October 2007
OHS Internet Resources
There is a large volume of information on the internet Set out below is a select number of government sites
National Occupational Health and Safety Commission www.nohsc.gov.au Victoria www.workcover.vic.gov.au New South Wales www.workcover.nsw.gov.au New South Wales http://www.fairtrading.nsw.gov.au/ Queensland www.whs.qld.gov.au South Australia www.workcover.sa.gov.au Western Australia www1.safetyline.wa.gov.au Tasmania www.wsa.tas.gov.au International Labour Organisation www.ilo.org European Agency for Safety and Health at Work http://agency.osha.eu.int United Kingdom www.hse.gov.uk USA www.osha.com NSW OH&S Medicine Specialist Practitioner www.chromis.com.au
29th October 2007
Contact Details
Dr. Graeme StuddertDBA. MBA. EngExec.
m. +61-0400-635-064p. +61 -02-4963 5060
