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29 th October 2007 Risk Management in Australia Dr. Graeme Studdert DBA. MBA. EngExec.

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Presentation on theme: "29 th October 2007 Risk Management in Australia Dr. Graeme Studdert DBA. MBA. EngExec."— Presentation transcript:

1 29 th October 2007 Risk Management in Australia Dr. Graeme Studdert DBA. MBA. EngExec.

2 29 th 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

3 29 th October 2007 Overview Historically an “Ad Hoc” process Australian Standard AS4360 OH&S ACT 2000 Mandatory obligations of employers Obligations of employees

4 29 th October 2007 Risk Management in Australia Three Tiers of Government Federal State or Territory Local OHS Act 2000 OHS Regulations Australian Standards

5 29 th October 2007 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

6 29 th October 2007 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.

7 29 th 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

8 29 th October 2007 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

9 29 th October 2007 Hazard Identification What has the potential to an adverse outcome? Consultation with Staff To what extend can the views of staff be heard? Risk Assessment What is the probability of the hazard occurring? Risk Management Procedures are there documented Standard Operating Procedures(SOPs)? Information What information needs to be given to staff about the hazards and risk assessment OH&S Act 2000 – Ten steps

10 29 th October 2007 Instruction and Training What skills and competencies do staff require to manage the risks? Supervision To what extend are the SOPs applied and enforced? Monitoring What measures are in place to ensure the system is working Review Are 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

11 29 th October 2007 Part 2 - Duties relating to health, safety and welfare at work 8(2) Others at workplace An 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, or Any vehicle, vessel or aircraft, or Any installation on land, on the bed of any waters or floating on any waters, or Any tent or moveable structure. OH&S Act in NSW

12 29 th 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.

13 29 th October 2007 Pathway to an incident Initiating Event Prevention Mitigation Known Hazard Loss of Life / Asset

14 29 th October 2007 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

15 29 th October 2007 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 Act in NSW

16 29 th 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.

17 29 th 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.

18 29 th 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

19 29 th October 2007 Risky Business Individual tables can be developed to suit different Businesses and risk profiles Low (1) to Extreme (25)

20 29 th October 2007 Recent events in Australia Newcastle Floods June 2007 Continuous heavy rain and high winds

21 29 th 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

22 29 th October 2007 Sydney

23 29 th 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

24 29 th 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 Victoria New South Wales New South Wales Queensland South Australia Western Australia www1.safetyline.wa.gov.au Tasmania International Labour Organisation European Agency for Safety and Health at Work United Kingdom USA NSW OH&S Medicine Specialist Practitioner

25 29 th October 2007 Contact Details Dr. Graeme Studdert DBA. MBA. EngExec. m p e.


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