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Berrigan Shire Council – Transport Infrastructure Risk Management Plan

Berrigan Shire Council

Transport

ADVANCED INFRASTRUCTURE

RISK MANAGEMENT PLAN

Version 2

Adopted 16th July, 2014


Document Control Advanced Infrastructure Risk Management Plan

Document ID: 59.299.120818 nams.plus2 advanced irmp template v3

Rev No Date Revision Details Author Reviewer Approver

1 May 2011 Urban Stormwater Drainage (Kerb and Gutter Part) JS TD Council

1 May 2011 Footpaths JS TD Council 1 Nov 2008 Roads, Streets and Bridges FE PM Council

2 Jan 2014 Transport JS FE Council


TABLE OF CONTENTS

1. INTRODUCTION .............................................................................................................................................. 1 1.1 Aim ........................................................................................................................................................ 1 1.2 Objectives .............................................................................................................................................. 1 1.3 Advanced Infrastructure Risk Management ......................................................................................... 1 1.4 Scope ..................................................................................................................................................... 3 1.5 Risk Management Process .................................................................................................................... 3

2. COMMUNICATION AND CONSULTATION ....................................................................................................... 4 3. ESTABLISHING THE CONTEXT.......................................................................................................................... 4

3.1 Establishing the external context .......................................................................................................... 4 3.2 Establishing the internal context........................................................................................................... 5 3.3 Establishing the context of the risk management process ................................................................... 5 3.4 Develop risk criteria .............................................................................................................................. 6

4. RISK IDENTIFICATION ...................................................................................................................................... 7 4.1 General .................................................................................................................................................. 7

5. RISK ANALYSIS ............................................................................................................................................... 12 5.1 General ................................................................................................................................................ 12 5.2 Likelihood ............................................................................................................................................ 12 5.3 Consequences ..................................................................................................................................... 12 5.4 Risk Analysis ........................................................................................................................................ 13 5.5 Timing of Risk Treatment .................................................................................................................... 13 5.6 Analysis of Risk .................................................................................................................................... 14

6. RISK EVALUATION ......................................................................................................................................... 14 6.1 General ................................................................................................................................................ 14 6.2 Risk Evaluation .................................................................................................................................... 14

7. RISK TREATMENT PLANS ............................................................................................................................... 23 7.1 General ................................................................................................................................................ 23 7.2 Manage the Risks ................................................................................................................................ 23 7.3 Risk Treatment Process ....................................................................................................................... 24 7.4 Risk Treatments Options ..................................................................................................................... 24 7.5 Risk Treatment Plans ........................................................................................................................... 24

8. MONITORING AND REVIEW .......................................................................................................................... 40 9. REFERENCES .................................................................................................................................................. 40


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1. INTRODUCTION

1.1 Aim

The purpose of this core infrastructure risk management plan is document the results and recommendations resulting from periodic identification, assessment and treatment of risks associated with providing services to the community from infrastructure, using the fundamentals of International Standard ISO 31000:2009 Risk management – Principles and guidelines.

Risk Management is defined in ISO 31000:2009 as: “coordinated activities to direct and control an organisation with regard to risk”.

1

1.2 Objectives

The objectives of the plan are:

to identify risks to the Berrigan Shire Council that may impact of the delivery of services from infrastructure,

to select credible risks for detailed analysis,

to analyse and evaluate risks in accordance with ISO 31000:2009,

to prioritise risks,

to identify risks requiring treatment by management action,

to develop risk treatment plans identifying the tasks required to manage the risks, the officer/authority responsible for each task, the resources required and the due completion date.

1.3 Advanced Infrastructure Risk Management

This advanced infrastructure risk management plan has been designed to be read as a supporting document to a NAMS.PLUS2 Asset Management Plan. It is based on the fundamentals of International Standard ISO 31000:2009 Risk Management – Principles and guidelines.

Organisations aiming at being an effective manager of risk should comply with the following principles.

Risk management creates and protects value – by contributing to the demonstrable achievement of objectives and improvement of performance in, for example, human health and safety, security, legal and regulatory compliance, public acceptance, environmental protection, product/service quality, project management, effectiveness in operations, governance and reputation.

Risk management is an integral part of all organisational processes – not a stand-alone activity that is separate from the main activities and processes of the organisation. Risk management is part of the responsibilities of management and integral to all organisational processes, including strategic planning and all project and change management processes.

Risk management is part of decision making – by helping decision makers make informed choices, prioritise actions and distinguish between alternate courses of action.

Risk management explicitly address uncertainty, the nature of that uncertainty and how it can be addressed.

Risk management is systematic, structured and timely – which contributes to efficiency and consistent, comparable and reliable results.

Risk management is based on the best available information – however, decision makers should inform themselves of, and should take into account, any limitations of the data or modelling used or the possibility of divergence among experts.

Risk management is tailored – and aligned with the organisation’s external and internal control and risk factors.

1 ISO 31000:2009, p 2.

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Risk management takes human and cultural factors into account – by recognising the capabilities, perceptions and intentions of external and internal people that can facilitate or hinder achievement of the organisation’s objectives.

Risk management is transparent and inclusive – through appropriate and timely involvement of stakeholders and, in particular, decision makers at all levels of the organisation, so that risk management remains relevant and up-to-date. Involvement also allows stakeholder to be properly represented and to have their views taken into account in determining risk criteria.

Risk management is dynamic, iterative and responsive to change – by continually sensing and responding to change. As external and internal events occur, context and knowledge change, monitoring and review of risks take place, new risks emerge, some change and some disappear.

Risk management facilitates continual improvement of the organisation – from development and implementation of strategies to improve their risk management maturity alongside all other aspects of the organisation.

2

The success of risk management depends on the effectiveness of the management framework providing the foundations and arrangements that will embed it throughout the organisation at all levels. The framework ensures that information about risk derived from the risk management process is adequately reported and used as a basis for decision making and accountability at all relevant organisation levels.

3 The dependency of

the management framework components in managing risk is shown in Figure 1.3.

Mandate and commitment

Design of framework for managing riskUnderstanding the organisation and its contextEstablishing risk management policyAccountabilityIntegration into organisation processesResourcesEstablishing internal communication and reporting mechanismsEstablishing external communication and reporting mechanisms

Continual improvement of the framework Implementing risk managementImplementing the framework for managing riskImplementing the risk management process

Monitoring and review of the framework

Fig 1.3: Relationship between the components of framework for managing risk Source: Based on ISO 31000; 2009, Fig 2, p 9

2 ISO 3100:2009, Sec 3, pp 7-8.

3 ISO 3100: 2009, Sec 4.1, p 8.

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1.4 Scope

This plan considers risks to services delivery from transport infrastructure.

1.5 Risk Management Process

The risk management process used in this project is shown in Figure 1.5 below.

It is an analysis and problem solving technique designed to provide a logical process for the selection of treatment plans and management actions to protect the community against unacceptable risks.

The process is based on the fundamentals of International Standard ISO 31000:2009.

RISK ASSESSMENT

ESTABLISHING THE CONTEXT

- The external context- The internal context- Define risk criteria

RISK ANAYLSIS

Identify existing controls

Determine DetermineConsequences Likelihood

Determine level of risk

RISK EVALUATION

- Compare against risk criteria- Set priorities

Is risk acceptable?

Is risk acceptable?

RISK TREATMENT

- Identify options (cost & residual risk)- Assess options (risk reduction & cost)- Prepare and implement treatment plans- Communicate residual risks

CO

MM

UN

ICA

TIO

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CO

NSU

LTA

TIO

N

MO

NIT

OR

ING

& R

EVIE

W

RISK IDENTIFICATION

- What can happen?- When and why?- How and why?

Yes

No

Fig 1.5: Risk Management Process – Detail

Source: Based on ISO 31000; 2009, Fig 3, p 14

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2. COMMUNICATION AND CONSULTATION

Risk communication and consultation is “continual and iterative processes that an organisation conducts to provide, share or obtain information and to engage in dialogue with stakeholders regarding the management of risk”.

4

Appropriate communication and consultation seeks to:

Improve people’s understanding of risks and the risk management processes,

Ensure that the varied views of stakeholders are considered, and

Ensure that all participants are aware of their roles and responsibilities. 5

The development of this infrastructure risk management plan was undertaken using a consultative team approach to:

Identify stakeholders and specialist advisors who need to be involved in the risk management process,

Discuss and take into account the views of stakeholder and specialist advisors, and

Communicate the results of the risk management process to ensure that all stakeholders are aware of and understand their and roles and responsibilities in risk treatment plans.

Members of the team responsible for preparation of this risk management plan are:

Director Technical Services,

Executive Engineer,

Roads Overseer,

Maintenance Overseer,

Enterprise Risk Manager

3. ESTABLISHING THE CONTEXT

In establishing the context, “the organisation articulates its objectives, defines the external and internal parameters to be taken into account when managing risk, and sets the scope and risk criteria for the remaining progress”.

6

The context is established in three stages, external, internal and risk criteria.

3.1 Establishing the external context

The external context is the external environment in which the organisation seeks to achieve its objectives. Understanding the external context is important to ensure that the objectives and concerns of external stakeholders are considered when developing risk criteria. This external context can include but is not limited to:

The social and cultural, political, legal, regulatory, financial, technological, economic, natural and competitive environment in which the organisation operates,

Key drivers and trends impacting on the objectives of the organisation, and

Relationships with, perceptions and values of external stakeholders.7

4 ISO 31000:2009, Sec 2.12, p 3.

5 HB 436:2004, Sec 3.1, p 20.

6 ISO 31000:2009, Sec 5.3.1, p 15.

7 ISO 31000:2009, Sec 5.5.2, p 15.

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This is to determine the crucial elements which might support or impair its ability to manage the risks associated with its operation.

Key items of the external environment within which Berrigan Shire Council operates are:

Extreme Wet,

Reduction of Funding Sources,

Traffic Volume Increases, .

3.2 Establishing the internal context

The internal context is the internal environment in which the organisation seeks to achieve its objectives. It includes anything within the organisation that can influence the way in which an organisation will manage risks. It should be established because:

risk management takes place in the context of the organisation’s objectives,

objectives and criteria of a particular project, process and activity should be considered in the light of objectives of the organisation as a whole, and

some organisations fail to recognise opportunities to achieve their strategic, project or business objectives, and this affects ongoing organisational commitments, credibility trust and value.

8

The purpose of this stage is to align the risk management process with the organisation’s culture, processes, structure and strategy. It is essential that the organisation understands its internal context which can include, but is not limited to:

governance, organisational structure, roles and accountabilities,

policies, objectives, and the strategies that are in place to achieve them,

capabilities, understood in terms of resources and knowledge (eg capital, time, people, processes, systems and technologies),

the relationships with and perceptions and values of internal stakeholders,

the organisation’s culture,

information systems, information flows and decisions making processes (both formal and informal),

standards, guidelines and models adopted by the organisation, and

form and extent of contractual relationships.9

Berrigan Shire Council operates many management practices and procedures to identify and manage risks associated with providing services from infrastructure assets. These include:

operating a reactive maintenance service for all assets and services,

operating a planned maintenance system for key assets,

monitoring condition and remaining service life of assets nearing the end of their service life,

renewing and upgrading assets to maintain service delivery,

closing and disposing of assets not providing the required service level, and

acquiring or constructing new assets to provide new and improved services. 3.3 Establishing the context of the risk management process

This stage of context development is the risk management context. It includes setting the objectives, strategies, scope and parameters of the services to which the risk management process is being applied. The process should be undertaken with the need to balance costs, benefits and opportunities. The resources required and records to be kept should also be required.

8 ISO 3100:2009, Sec 5.3.3, pp 15.

9 ISO 3100:2009, Sec 5.3.3, pp 15-16.

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The context of the risk management process will vary according to the needs of an organisation. It can involve, but is not limited to:

defining the goals and objectives of the risk management activities,

defining responsibilities for and within the risk management process,

defining the scope, as well as the depth and breadth of the risk management activities to be carried out, including specific inclusions and exclusions,

defining the activity, process, function, project, product, service or asset in terms of time and location,

defining the relationships between a particular project, process or activity and other projects, processes or activities of the organisation,

defining the risk assessment methodologies,

defining the way performance and effectiveness is evaluated in the management of risk,

identifying and specifying the decisions that have to be made, and

identifying, scoping or framing studies needed, their extent and objectives, and the resources required for such studies.

10

The organisation has assigned responsibilities for managing risks associated with assets and service delivery to the following areas.

Technical Services Department,

Enterprise Risk Manager, 3.4 Develop risk criteria

The purpose of this stage is to develop the criteria against which risk is to be evaluated. The criteria should reflect the organisation's values, objectives and resources and the interests of stakeholders. This may depend on operational, technical, financial, legal, social, humanitarian, or other criteria.

Some criteria can be imposed by, or derived from, legal and regulatory requirements and other requirements to which the organisation subscribes. Risk criteria should be consistent with the organisation's risk management policy, be defined at the beginning of any risk management process and be continually reviewed.

When defining risk criteria, factors to be considered should include the following:

the nature and types of causes and consequences that can occur and how they will be measured,

how likelihood will be defined,

the timeframe(s) of the likelihood and/or consequence(s),

how the level of risk is to be determined,

the views of stakeholders,

the level at which risk becomes acceptable or tolerable, and

whether combinations of multiple risks should be taken into account and, if so, how and which

combinations should be considered.11

The risk evaluation criteria used in this risk management plan are shown in Table 3.4. This criteria is used to identify risk that are not acceptable to the organisation.

Table 3.4: Risk Evaluation Criteria

Criterion Risk Evaluation (Not Acceptable) Criteria

Operational Risks that have the potential to reduce services for a period of time unacceptable to the community and/or adversely affect the organisation’s public image.

10

ISO 31000:2009, Sec 5.3.4, p 16.

11 ISO 31000:2009, Sec 5.3.5, p 17.

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Criterion Risk Evaluation (Not Acceptable) Criteria

Technical Risks that cannot be treated by the organisation’s existing and/or readily available technical resources.

Financial Risks that cannot be treated within the organisation’s normal maintenance budgets or by reallocation of an annual capital works program.

Legal Risks that have the potential to generate unacceptable exposure to litigation.

Social Risks that have the potential to: - cause personal injury or death and/or - cause significant social/political disruption in the community.

Environmental Risks that have the potential to cause environmental harm.

The evaluation criteria are to provide guidance to evaluate whether the risks are acceptable to the organisation and its stakeholders in providing services to the community. Risks that meet the evaluation criteria above are deemed to be unacceptable and risk management plans are required to be developed and documented in this Infrastructure Risk Management Plan.

4. RISK IDENTIFICATION

4.1 General

Risk identification seeks to identify the risks to be managed. A well-structured systematic process is crucial, because a potential risk not identified at this stage is excluded from further analysis. All risks should be identified, whether or not they are under the control of the organisation.

The risks are identified in three stages:

What can happen? The aim is to generate a comprehensive list of events which might affect each element of the organisation’s service delivery.

How and why it can happen? It is necessary to consider possible causes and scenarios. There are many ways and event can be initiated. It is important that no significant causes are omitted.

Are risks credible? An assessment of credibility of all risk is undertaken to ensure that credible risks receive proper and due consideration.

The assets at risk, what can happen, when, possible cause(s), existing controls and assessment of credibility of the risk by the risk management team are shown in Table 4.1.

Credible risks are subjected to risk analysis in Section 5.

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Table 4.1: Risk Identification

RISK IDENTIFICATION

Risk No.

Asset providing the Service

What can happen? When can it occur?

Possible cause Existing controls Is risk credible?

1 Urban Road Pavements Pavement failure due to poor drainage Anytime now Tree roots blocking underground drains and/or lifting kerb and gutter

Regular inspections and maintenance

Yes

2 Rural Road Pavement Pavement failure due to poor drainage Anytime now Blocked Culverts and/or drains


Yes

3 Bitumen Surface Bitumen damaged by oil or other chemical

Anytime now Oil/chemical spill as a result of accident

Emergency Response/Clean up kits

Yes

4 Environment Oil or chemical spilled into roadside environment

Anytime now Oil/chemical spill as a result of accident

Emergency Response/Clean up kits

Yes

5 Road Structure /Roadside furniture/ signs/ traffic

Damage to roads and signs etc and blockage of traffic lanes from traffic accident

Anytime now Traffic Accident Emergency Response Yes

6 Road/Bridge/ Culvert Structure

Unstable surface due to failure of irrigation crossings

Anytime now Inadequate inspection, maintenance and repair program

Scheduled inspection of roads

Yes

7 Road/Bridge/ Culvert Structure

Rough surface due to failure of irrigation crossings

Anytime now Overloading RMS / Police Yes

8 Sealed Road Structure / Surface

Potholes/ Rutting/ Shoving/ Edge Break Anytime in the future

Extended wet conditions poor maintenance

Scheduled inspection of roads

Yes

9 Sealed Road Structure / Surface

Potholes/ Rutting/ Shoving/ Edge Break Anytime now Traffic Loadings exceed road standard

Scheduled inspection of roads and repairs

Yes

10 Gravel Road Structure / Surface

Potholes/Rutting/Shoving / Corrugations / Slippery Surface

Anytime in the future

Extended wet conditions, poor maintenance


Yes

11 Gravel Road Structure / Surface

Potholes/Rutting/Shoving / Corrugations / Slippery Surface


Traffic Loading exceeds road standard


Yes

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RISK IDENTIFICATION

Risk No.




12 Lower River Road/Taylors Road/Bushlands Road

Road can be impassable and damaged due to flooding

Within 5 years Flooding of Murray River

Road closure followed by inspection and repair

Yes

13 All roads and streets protected by Tocumwal Levees

Roads can be impassable and damaged due to flooding

Beyond 20 years

Major Flooding of Murray River and overtopping of levee

Road closure followed by inspection and repair

Yes

14 All roads and streets Trees and debris blocking traffic lanes and damaging road furniture


Severe Storms Signage followed by inspection and repair

Yes

15 Rural Road Water over road due to flooding Within 1 year Severe Storms Signage followed by inspection and repair

Yes

16 Hughes St, Barooga at Collie St, Barooga

Water over road due to flooding Within 1 year Pump Station inadequate during Severe Storms

Signage followed by inspection and repair

Yes

17 Snell Rd, Barooga Water over road due to flooding Within 1 year Drainage system inadequate during Severe Storms


Yes

18 Davis St, Berrigan at Momalong St, Berrigan

Water over road due to flooding Within 1 year Drainage system inadequate during Severe Storms


Yes

19 Davis St, Berrigan South End



Yes

20 Anthony Avenue, Tocumwal



Yes

21 Lorelle Ct, Tocumwal Water over road due to flooding Within 1 year Drainage system inadequate during Severe Storms


Yes

22 Rural Road Water over road due to flooding Within 1 year Drains or culverts bolcked


Yes

23 Urban Road Water over road due to flooding Within 1 year Drains or pits blocked Regular inspections and maintenance

Yes

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RISK IDENTIFICATION

Risk No.




24 Urban Road Water over road due to flooding Within 1 year Drainage system inadequate in severe storms


Yes

25 Rural Road Vehcichle collision with wildlife Anytime now Wildlife on road Signage Yes

26 Rural Road Vehicle collision with livestock Anytime now Livestock on roads Ranger patrols and policing

Yes

27 Rural Road Vehicle collision with livestock Anytime now Traveling Stock Signage n. Ranger patrols and policing

Yes

28 Rural Road Vehicle collision with livestock Anytime now Stock Crossings Signage Yes

29 Rural Road Damage to road surface Anytime in the future

Stock Crossings Signage and requirement for owners to repair road

Yes

30 Lower River Road concrete causeways

Vehicle acccident Anytime in the future

Inadequate risk and vertical alignment

signage Yes

31 Lower River Road Bridges Vehicle acccident Anytime in the future

Inadequate risk and guard rails

Signage Yes

32 Roadside furniture and signs

Damaged removed Anytime now Vandalism Regular inspections and maintenance

Yes

33 Lower River Road concrete causeways

Damaged by floodwaters Within 5 years Severe flood event Regular inspections and maintenance

Yes

34 Bridges Damaged by floodwaters Within 5 years Severe flood event Regular inspections and maintenance

Yes

35 Rural Road Traffic accident Anytime now too narrow for traffic conditions

New road construction to new wideer standard

Yes

36 Rural Road Traffic accident Anytime now Roadside obstacles too close too traffic lane

Roadside clearing and mainteance

Yes

37 Rural road intersection Traffic accident Anytime now no provision for right turn traffic

Signage Yes

38 Urban Road Water over road due to flooding Anytime now Pump failure Regular inspections and maintenance

Yes

39 Kerb and Gutter Flood Anytime now Movement in kerb Regular inspections and maintenance

Yes

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RISK IDENTIFICATION

Risk No.




40 Kerb and Gutter Road collaspe Anytime now Movement in kerb Regular inspections and maintenance

Yes

41 Footpath Trip / Fall Anytime now Tree Roots, Holes, Lifting or Moving Concrete, Service Pits etc, Signage or Street Furniture


Yes

42 Footpath Hitting Head Anytime now Tree or street furniture


Yes

43 Swing Bridge Bridge collaspe Within 20 years

Age, structural fitigue,


Yes

44 Pedestrian Crossing Pedestrian colliding with vehicle Anytime now Limited visiblity, missing or damaged signs faded linemarking


Yes

45 Footpath Pedestrian colliding with mobility aide Anytime now Narrow path Regular inspections and maintenance

Yes

46 Footpath Water laying on footpath Anytime now Storm or flood Regular inspections and maintenance

Yes

47 Road Bridge Collaspe Within 20 years

Age, structural fitigue,


Yes

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5. RISK ANALYSIS

5.1 General

Risk is analysed by combining estimates of likelihood and consequences in the context of existing control measures. The objective of a risk analysis is to separate the minor acceptable risks from the major risks and to provide data to assist in assessment and treatment of risk.

The level of risk is determined by considering two aspects against existing controls:

how likely it is that things may happen (likelihood, frequency of probability), and

the possible consequences (impact or magnitude of the effect) if they do occur. The risk analysis process is to:

identify the existing management controls, technical systems and procedures to control risk,

evaluate the likelihood of events occurring and their consequences in the context of these existing controls, and

combine the evaluation of likelihood and consequences to produce a level of risk. 5.2 Likelihood

Likelihood is a qualitative description of probability of an event occurring. The process of determining likelihood involves combining information about estimated or calculated probability, history or experience. Where possible it is based on past records, relevant experience, industry practice and experience, published literature or expert judgement. The qualitative likelihood descriptors are shown in Table 5.2.

Table 5.2: Likelihood Descriptors

Likelihood Descriptor Probability of occurrence

Rare May occur only in exceptional circumstances More than 20 years

Unlikely Could occur at some time Within 10-20 years

Possible Might occur at some time Within 3-5 years

Likely Will probably occur in most circumstances Within 2 years

Almost certain Expected to occur in most circumstances Within 1 year

5.3 Consequences

Consequences are a qualitative description of the effect of the event. The process of determining consequences involved combining information about estimated or calculated effects, history and experience. The qualitative likelihood descriptors are shown in Table 5.3.

The worst case consequence from the 5 consequence criteria in Table 5.3 is used for risk analysis.

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Table 5.3: Consequence Descriptors

Consequence Injury Service Interruption

Environment Finance Reputation

Insignificant Nil < 4 hrs Nil < $20k Nil

Minor First Aid Up to 1 day Minor short term

$20k - $100k Minor media

Moderate Medical treatment

1 day – 1 week Wide short term

$100k - $500k Moderate media

Major Disability 1 week – 1 month

Wide long term $500k - $1M High media

Catastrophic Fatality More than 1 month

Irreversible long term

> $1M Censure/ Inquiry

5.4 Risk Analysis

The risk assessment process compares the likelihood of a risk event occurring against the consequences of the event occurring. In the risk assessment matrix table below, a risk event with a likelihood of ‘Possible’ and a consequence of ‘Major’ has a level of risk of ‘High’. This level of risk is used to develop a typical risk treatment in Section 6.1.

Table 5.4: Risk Assessment Matrix

Risk Rating

Likelihood Consequences

Insignificant Minor Moderate Major Catastrophic

Rare L L M M H

Unlikely L L M M H

Possible L M H H H

Likely M M H H VH

Almost Certain M H H VH VH

Ref: HB 436:2004, Risk Management Guidelines, Table. 6.6 p 55.

5.5 Timing of Risk Treatment

The level of risk is used to determine risk treatments. Risk treatments can range from immediate corrective action (such as stop work, make safe or prevent use of the asset) for ‘Very High’ risks to manage by routine procedures for ‘Low’ risks.

Using the example from Section 5.4, an event with a ‘High Risk’ rating will require ‘Prioritised action’.

Table 5.4: Timing of Risk Management Required

Level of Risk Timing of Action Required

VH Very High Risk Immediate corrective action

H High Risk Prioritised action required

M Medium Risk Planned action required

L Low Risk Manage by routine procedures

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Immediate corrective action may include combinations of stopping work, making the area safe, preventing use of the asset and/or scheduling replacement as soon as possible. Prioritised action may include making the areas safe and implementing a short term work program to reduce the risk through improved maintenance or replacement of the asset. Planned action may include shifting the asset from a reactive maintenance to a planned maintenance management regime and/or scheduling component/asset replacement in the current or next budget. Manage by routine procedures involves managing the risk through existing operations and maintenance procedures.

5.6 Analysis of Risk

The team conducted an analysis of credible risks identified in Table 4.1 using the method described above to determine a level of risk for each credible risk.

The credible risks and levels of risk are shown in Table 6.2.

6. RISK EVALUATION

6.1 General

Risk evaluation involves comparing the level of risk found during the analysis process with previously established risk evaluation criteria and deciding whether the risks can be accepted.

Options should be evaluated on the basis of the extent of risk reduction and the extent of benefits or opportunities created, taking into account the criteria developed in Section 3.4.

In general, the adverse impact of risks should be made as low as reasonably practicable irrespective of any absolute criteria. A combination of options may give the optimum risk reduction outcome.

If the risks fall into the acceptable or low categories, they may be accepted with minimal further treatment. Acceptable or low risks should be monitored and periodically reviewed to ensure they remain acceptable.

If the risks do not fall into the acceptable or low category, they should be managed using one of the options below.

The output of risk evaluation is a prioritised list of risks for further action.

6.2 Risk Evaluation

Table 6.2 shows the evaluation of risks using the criteria determined in Section 4 and identified risks that are considered as not acceptable to meet the organisation’s objectives and for which, risk treatment plans are required. Risk treatment plans are developed in Section 7.

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Table 6.2 Risk Analysis and Evaluation

RISK ANALYSIS RISK EVALUATION (is the risk acceptable?)

Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?

1 Possible

Insignificant

Minor Minor Insignificant

Minor Minor Medium

Planned action required

No No Yes Yes Yes Yes No

2 Possible

Moderate

Moderate

Moderate

Moderate

Minor Moderate High Prioritised action required

No No No No No No No

3 Likely Minor Minor Minor Minor Insignificant

Minor Medium


Yes Yes Yes Yes Yes Yes Yes

4 Unlikely

Minor Minor Minor Insignificant

Insignificant

Minor Low Manage by routine procedures


5 Almost certain

Major Major Minor Major Major Major Very High

Immediate corrective action


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Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?

6 Possible

Moderate

Moderate

Minor Moderate

Moderate

Moderate High Prioritised action required


7 Rare Moderate

Moderate

Minor Moderate

Minor Moderate Medium



8 Likely Moderate

Moderate

Moderate

Moderate

Moderate



9 Unlikely

Moderate

Moderate

Minor Minor Minor Moderate Medium



10 Likely Moderate

Moderate

Insignificant

Moderate

Moderate



11 Rare Moderate

Moderate

Minor Moderate

Moderate

Moderate Medium



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Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?

12 Possible

Insignificant

Moderate

Insignificant

Insignificant

Insignificant


No No Yes Yes Yes Yes No

13 Rare Major Major Major Major Major Major Medium



14 Almost certain

Minor Minor Minor Minor Minor Minor High Prioritised action required


15 Almost certain



16 Almost certain



17 Likely Minor Minor Minor Minor Minor Minor Medium



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Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?

18 Possible

Minor Minor Minor Minor Minor Minor Medium


















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Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?




25 Almost certain

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Very High

Immediate corrective action


26 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

High Prioritised action required


27 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



28 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



29 Almost certain



- 20 -



Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?

30 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



31 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



32 Almost certain

Insignificant

Insignificant

Insignificant

Insignificant

Insignificant

Insignificant

Medium



33 Unlikely

Minor Minor Minor Minor Minor Minor Low Manage by routine procedures


34 Unlikely

Moderate

Moderate

Moderate

Moderate

Moderate

Moderate Medium



35 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



- 21 -



Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?

36 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



37 Possible

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



38 Possible




39 Rare Minor Minor Minor Minor minor Minor Low Manage by routine procedures


40 Rare Moderate

Moderate

Moderate

Moderate

Moderate

Moderate Medium



41 Possible

Moderate

Moderate

Insignificant

Moderate

Moderate


No No No No No Yes No

- 22 -



Risk No

.

Likelihood

Conseq. Injury

Conseq. Service

Int.

Conseq. Environ

ment

Conseq. Financia

l

Conseq. Reputati

on

Overall Conseque

nces

Risk ratin

g

Action require

d

Operational

Technical

Financial

Legal

Social

Environmental

Is risk acceptable?

42 Possible




43 Rare Minor Minor Minor Minor Minor Minor Low Manage by routine procedures


44 Rare Major Major Major Major Major Major Medium



45 Rare Moderate

Moderate

Moderate

Moderate

Moderate

Moderate Medium



46 Possible




47 Rare Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic

Catastrophic



- 23 -


7. RISK TREATMENT PLANS

7.1 General

The treatment of risk involves identifying the range of options for treating risk, evaluating those options, preparing risk treatment plans and implementing those plans.

This includes reviewing existing guides for treating that particular risk, such as Australian and State legislation and regulations, Australian Standards and Best Practise Guides. Developing risk treatment options starts with understanding how risks arise, understanding the immediate causes and the underlying factors that influence whether the proposed treatment will be effective.

One treatment option is to remove the risk completely by discontinuing the provision of the service. Other options include risk reduction by reducing the likelihood and/or the consequences of the risk.

7.2 Manage the Risks

Risks need to be managed appropriately to the significance of the risk and importance of the affected item/asset to the organisation’s service delivery. As a general guide:

low levels of risk can be accepted and additional action may not be needed; these risks should be monitored,

major or significant levels of risk should be managed with actions to reduce or eliminate the risk,

high levels of risk require close management and the preparation of a formal plan to manage the risks.

Options for managing risk are shown below. The optimum solution may involve a combination of options.

Avoid the risk by deciding not to proceed with the activity that would incur the risk, or choose an alternative course of action that achieves the same outcome,

Reduce the level of risk by reducing the likelihood of occurrence or the consequences, or both; the likelihood may be reduced through management controls, organisational or other arrangements which reduce the frequency of, or opportunity for errors, such as alternative procedures, quality assurance, testing, training, supervision, review, documented policy and procedures, research and development.

the consequences may be reduced by ensuring that management or other controls, or physical barriers, are in place to minimise any adverse consequences, such as contingency planning, contract conditions or other arrangements.

Transfer the risk by shifting the responsibility to another party (such as an insurer), who ultimately bears the consequences if the event occurs. Risks should be allocated to the party which can exercise the most effective control over those risks.

Accept and retain the risks within the organisation where they cannot be avoided, reduced or reduced or transferred, or where the cost to avoid or transfer the risk is not justified, usually because the risk is acceptable or low. Risks can be retained by default, ie. Where there is a failure to identify and/or appropriately transfer or otherwise manage risks

The cost of managing risks needs to be commensurate with the benefits obtained, the significance of the event and the risks involved.

- 24 -


7.3 Risk Treatment Process

The risk treatment process comprises 5 steps.

Step 1. Review causes and controls

The risk identification process documented in Section 5 included identifying possible causes and documenting existing controls.

Step 2. Develop treatment options

Treatment options include those that eliminate risk, reduce the likelihood or the risk event occurring, reducing the consequences should the risk event occur, sharing of the risk with others and accepting the risk.

Step 3. Assess risk treatment options against costs and residual risk

The method of assessment of risk treatment options can range from an assessment by a local group of stakeholders and practitioners experienced in operation and management of the assets/service to detailed risk cost and risk reduction cost/benefit analysis.

Step 4. Select optimum risk treatment

Step 5. Develop risk treatment plans

7.4 Risk Treatments Options

The risk treatment options identified for non-acceptable risks shown in Table 6.2 are detailed in Table 7.4.

7.5 Risk Treatment Plans

From the optimum risk treatment options identified in Table 7.4, risk treatment plans were developed.

The risk treatment plans identify for each non-acceptable risk:-

Proposed action

Responsibility

Resource requirement/budget

Timing

Reporting and monitoring required

The risk treatment plan is shown in Table 7.5.

- 25 -


Table 7.4: Risk Treatment

RISK TREATMENT OPTIONS OPTIONS RESIDUAL RISK

Risk No. No. Treatment option(s) Cost $000

Likelihood (from Col H)

Consequences (from Col N)

Residual risk

1 A Develop Inspection program $0 Unlikely Minor Low

B Remove intrusive roots $10 Unlikely Minor Low

C

D

2 A Develop Inspection program $0 Unlikely Minor Low

B Develop maintenance program $50 Unlikely Minor Low

C

D

3 A

B

C

D

4 A

B

C

D

5 A

B

C

D

6 A Scheduled inspection by Irrigation Authorities

B Scheduled maintenance of structures by Irrigation Authorities

C

D

7 A

B

C

- 26 -






Residual risk

D

8 A Increase inspection frequency during extended wet periods

$0 Unlikely Minor Low

B

C

D

9 A

B

C

D

10 A Increase inspection frequency during extended wet periods

0 Unlikely Minor Low

B

C

D

11 A

B

C

D

12 A Prepare signage plans and ensure signs available. Document procedures


B

C

D

13 A Leevee Maintenance 50 Rare Moderate Medium

B

C

D

14 A

B

C

- 27 -






Residual risk

D

15 A

B

C

D

16 A Monitor recent improvements 0 Unlikely Minor Low

B Priortise any need for improvement


C Wait for next good rain 0 Unlikely Minor Low

D

17 A

B

C

D

18 A Conduct review of driange for Berrigan township

$0 Possible Minor Medium

B

C

D


0 Possible Minor Medium

B

C

D





D




- 28 -






Residual risk


D

22 A Develop SOP's for Rural Roads, drainage inspections and mainteance


B

C

D

23 A Develop SOP's for drianage inspection and maintenance


B

C

D



B Conduct review of driange for Finley township


C

D

25 A

B

C

D

26 A

B

C

D

27 A

B

C

D

28 A Construct underpasses 0 Rare Insignificant Low

- 29 -






Residual risk

B

C

D

29 A Construct underpasses 0 Rare Insignificant Low

B

C

D

30 A Upgrade causeways $0 Unlikely Minor Low

B

C

D

31 A upgrade bridges 0 Unlikely Minor Low

B

C

D

32 A

B

C

D

33 A

B

C

D

34 A

B

C

D

35 A Develop program to upgrade council roads to new deisgn widths


B

C

- 30 -






Residual risk

D

36 A Develop program to clear roadsides of obstacles


B

C

D

37 A

B

C

D

38 A

B

C

D

39 A

B

C

D

40 A

B

C

D

41 A Update SOP's for Footpath inspection and mainteance


B

C

D

42 A

B

C

D

43 A

- 31 -






Residual risk

B

C

D

44 A

B

C

D

45 A

B

C

D

46 A

B

C

D

47 A Develop Inspection and Maintenance Program

$0 Rare Catastrophic High

B

C

D

- 32 -


Table 7.5: Risk Treatment Plan

RISK TREATMENT PLAN

Risk No.

Treatment Plan [best option(s)]

Residual Risk Actions Responsibility Resources Budget $000

Date due

1 Develop and document SOP's for kerb and gutter and drains inspections. Prepare works program

Low 1 Prepare works program OM Staff Time $10 Dec-14

2 Develop and document SOP's for kerb and gutter inspections

EXE Staff Time $0 Dec-14

3 Develop and document SOP's for drains inspections


4

2 Develop procedures for inspection of rural culverts and drainage. Prepare works program

Low 1 Prepare works program OM Staff Time $50 Dec-14

2 Develop and document SOP's for culvert inspections


3

4

3 1

2

3

4

4 1

2

3

4

5 1

2

3

4

6 Write to Irrigation Authorities and request details of their inspection and maintenance plans.

Low 1 Write to Irrigation Authorities and request details of their inspection and maintenance plans

EXE Staff Time 0 Dec-14

- 33 -


RISK TREATMENT PLAN

Risk No.



Date due

Suggest improvements if not considered adequate.

2 Suggest improvements if not considered adequate.


3

4

7 1

2

3

4

8 Review timelines for inspections and response times during extended wet periods

Low 1 Review timelines for inspections and response times during extended wet periods


2

3

4

9 1

2

3

4

10 Review timelines for inspections and response times during extended wet periods

Low 1 Review timelines for inspections and response times during extended wet periods


2

3

4

11 1

2

3

4

12 Prepare signage plan Low 1 Prepare signage plan EXE Staff Time $0 Dec-14

- 34 -


RISK TREATMENT PLAN

Risk No.



Date due

Develop procedures Ensure any permanent signage is installed Ensure required temporary signs are available

2 Develop procedures for impimentation


3 Ensure any permanent signage is installed

OM Staff Time $5 Dec-14

4 Ensure required temporary signs are available

OM Staff Time $5 Dec-14

13 Prepare SOP's for leevee inspection and maintenance

Medium 1 Prepare Sop's for Levee inspection and maintenance

EXE Staff Time 0 #########

2 Provide maintenance schedule

EXE Staff Time 0 #########

3 Maintain levee OM Staff Time 50 #########

4

14 1

2

3

4

15 1

2

3

4

16 monitor drainage issues Low 1 Monitor drainage issues EXE Staff Time $0 Ongoing

2

3

4

17 1

2

3

4

18 Conduct review of driange for Berrigan

Low 1 Review town drainage EXE Staff Time $0 Dec-14

2 Program works EXE Staff Time $0 Dec-14

- 35 -


RISK TREATMENT PLAN

Risk No.



Date due

township 3

4

19 Conduct review of driange for Berrigan township

Low 1 Review town drainage EXE Staff Time $0 Dec-14

2 Program works EXE Staff Time $0 Dec-14

3

4


2

3

4


2

3

4

22 Develop SOP's for Rural Roads, drainage inspections and mainteance

Low 1 Develop SOP's for Rural Roads, drainage inspections and mainteance


2

3

4

23 Develop SOP's for drianage inspection and maintenance

Low 1 Develop SOP's for drianage inspection and maintenance


2

3

4

24 Conduct review of driange for Berrigan township. Conduct

Low 1 Conduct review of driange for Berrigan township


- 36 -


RISK TREATMENT PLAN

Risk No.



Date due

review of driange for Finley township

2 Conduct review of driange for Finley township


3

4

25 1

2

3

4

26 1

2

3

4

27 1

2

3

4

28 Constrct Underpasses Low 1 Regularly inspect sites to ensure adequate signage is in place when stock is crossing

SO Staff Time 0 Ongoing

2 Liaise with landowners and advise that they should be providing for the construction of underpasses in the long term

DM Staff Time 0 Dec-14

3

4

29 Constrct Underpasses Low 1 Regularly inspect sites to ensure adequate signage is in place when stock is crossing

SO Staff Time 0 Ongoing

- 37 -


RISK TREATMENT PLAN

Risk No.



Date due

2 Liaise with landowners and advise that they should be providing for the construction of underpasses in the long term

DM Staff Time 0 Dec-14

3

4

30 Upgrade causeways Low 1 upgrade causeways when traffic volumes and budget allow

EXE Staff Time $500

2

3

4

31 upgrade bridges Low 1 upgrade bridges when traffic volumes and budget allow

EXE Staff Time 500

2

3

4

32 1

2

3

4

33 1

2

3

4

34 1

2

3

4

- 38 -


RISK TREATMENT PLAN

Risk No.



Date due

35 Develop program to upgrade council roads to new deisgn widths

Low 1 Develop program to upgrade council roads to new deisgn widths

EXE Staff Time 0 Ongoing

2

3

4

36 Develop program to clear roadsides of obstacles

Low 1 Develop program to clear roadsides of obstacles

OM Staff Time 100 Ongoing

2

3

4

37 1

2

3

4

38 1

2

3

4

39 1

2

3

4

40 1

2

3

4

41 Update SOP's for Footpath inspection and mainteance

Low 1 Update SOP's for Footpath inspection and mainteance


2

- 39 -


RISK TREATMENT PLAN

Risk No.



Date due

3

4

42 1

2

3

4

43 1

2

3

4

44 1

2

3

4

45 1

2

3

4

46 1

2

3

4

47 Devlop SOP"s for Bridge Inspection and maintenance

Medium 1 Devlop SOP"s for Bridge Inspection and maintenance


2

3

4

- 40 -


8. MONITORING AND REVIEW

Monitoring and review is an essential and integral step in the process of managing risk. It is necessary to monitor risks, the effectiveness of any plans, strategies and management systems that have been established to control implementation of risk management actions.

The plan will be monitored and reviewed as follows.

Table 8: Monitoring and Review Program

Activity Review Process

Review of new risks and changes to existing risks

Annual review by team with stakeholders and report to council

Review of Risk Management Plan 4 yearly review and re-write by team and report to council

Performance review of Risk Treatment Plan

Action plan tasks incorporated in council staff performance criteria with 6 monthly performance review.

Action plan tasks for other organisations reviewed at annual team review meeting

9. REFERENCES

ISO 31000:2009, Risk management – Principles and guidelines, Standards Australia, Sydney.

HB 436:2004, Risk Management Guidelines, Companion to AS/NZS 4360:2004, Standards Australia, Sydney.

IPWEA, 2011, International Infrastructure Management Manual, Institute of Public Works Engineering Australia, Sydney, www.ipwea.org.au/IIMM

http://www.ipwea.org.au/IIMM

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