risk management john watt. overview an introduction to risk management standards and frameworks. an...
TRANSCRIPT
Risk ManagementRisk Management
John Watt
OverviewOverview
An introduction to risk management standards and frameworks.
An overview of organisational management of risk, illustrated in part by experience from the Athlete’s Village case study. How does health and safety risk management integrate with the wider organisational controls?
OverviewOverview
How do various stakeholders impact on the process? Risk is dynamic and changes things like budgets, design criteria or deadlines have an immediate impact on its management. Experience from the Athlete’s Village case study will show some ways that such challenges can be met.
Communication with stakeholders means different things at different parts of the project. The Athlete’s Village stakeholder map will be used to show examples of this. It is necessary to have a dialogue with some stakeholders in order to decide what to do, whereas in other cases risk communication is more concerned with changing behaviour as part of a management process.
ISO 31000
Culture?Culture?
Embedding risk management involves an environment that can demonstrate leadership from senior management, involvement of staff at all levels, a culture of learning from experience, appropriate accountability for actions (without developing an automatic blame culture) and good communication on risk issues.
A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000(IRM, AIRMIC and ALARM)
CONVENTIONAL RISK HANDLINGCONVENTIONAL RISK HANDLING
Most risk handling processes do not go beyond these stepsMost risk handling processes do not go beyond these steps
AppraisalManagement
UnderstandingDeciding
Communication
Who needs to do what, when?
The knowledge needed for
judgements and decisions
Who needs to know what,
when?
Bunting (2007). An introduction to the IRGC Risk Governance Framework
IRGC’S RISK GOVERNANCE FRAMEWORKIRGC’S RISK GOVERNANCE FRAMEWORK
Pre-Assessment
Characterisationand Evaluation
AppraisalManagement Communication
Categorising the
knowledgeabout the
risk
UnderstandingDecidingGetting a broad picture
of the risk
Is the risk tolerable, acceptable or unacceptable?
Risk assessment
PLUS Concern
assessment
Is the risk simple, complex, uncertain
or ambiguous?Bunting (2007). An introduction to the IRGC Risk Governance Framework
DriversDrivers
A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000(IRM, AIRMIC and ALARM)
Risk management frameworkRisk management framework
A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000(IRM, AIRMIC and ALARM)
Risk management processRisk management process
A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000 (IRM, AIRMIC and ALARM)
Safety Risk AssessmentSafety Risk Assessment
Judgements on: What are the hazards? What risk events could happen? How likely are they? How severe would the outcome be? Vulnerability?
Some definitionsSome definitions
Hazard – situation which could cause harm e.g. an earthquake fault line;
Risk – the probability that a certain kind of harm is realised
Risk assessment – an essentially technical process of assessing risk
Risk management – a non-technical process of selecting safety measures
Complexity
Maximise the scientific knowledge of the risk and mitigation options
Uncertainty
Involve all affected stakeholders to collectively decide best way forward
Ambiguity
Societal debate about the risk and its underlying implications
Simple
Use existing routines to assess risks and possible reduction measures
Dominant risk characteristic
Type of participation
Actors
Stakeholder InvolvementStakeholder Involvement
As the dominant characteristic changes, so alsowill the type of stakeholder involvement need to change
Regulatory bodies/industry experts
External Scientists/ Researchers
Affected stakeholders
Civil society
Regulatory bodies/industry experts
Regulatory bodies/industry experts
Regulatory bodies/industry experts
External Scientists/ Researchers
External Scientists/ Researchers
Affected stakeholders
After Bunting (2007). An introduction to the IRGC Risk Governance Framework
WorkshopWorkshop
The development of London 2012 Olympic Games in East London is a project twice the size of Heathrow’s new Terminal 5 to be delivered in half the time.
The biggest construction site in Europe creating thousands of new jobs with a peak site workforce of 9,000.
Transforming previously contaminated land into 110ha of new open space in a benchmark 21st century urban environment and 4,000 new homes.
More than 30 new bridges, 20km of roads and 8kmTens of kilometres of new utilities networks providing electricity, heat, water, sewerage and gas to the legacy communities
From this….From this….
To this by 2012….To this by 2012….