Managing Operational Risk District and Region Managers This presentation is for those wanting to know more about Operational risk management and is required by those completing the District Manager or Region Manager Qualification including their assistants. Give out Operational Risk Reference Manual

GGA Vision WHAT - We believe in delivering innovative, fun and relevant programs in a practical and safe environment. HOW- Our policy and processes for risk provide the ways for managing and reducing risks to support this vision Discuss: Vision Do they agree? What do they know about the current processes?

Risk Appetite Girl Guiding in Australia has an appetite to take reasonable risks. We are not risk averse We acknowledge that members and volunteers are accountable for their own behaviours, health and responsibilities within the Girl Guide organisation and to the community at large Discuss the changes that have occurred in the last 2 years to reflect better who we are. GGA has a clear risk appetite statement which makes it easier in what we should do as an organization. Discuss: Appetite Why is this statement important? What does it really mean on the ground?

Zero Tolerances GGA has zero tolerance of a limited number of matters including: We will not accept fatalities that are within our scope of influence We will not accept serious injury as a consequence of our negligence We will not accept bullying or any other poor behaviours that impact upon the well being of our members and volunteers. GGA Risk Management Policy informs us that we will not accept the following as it does not fit with our purpose. Discuss: Tolerances Do they agree with these? Why is there a Zero tolerance for bullying or poor behaviours?

Risk Management Properly understood risk management is an opportunity.

So what is Operational Risk Management? A logic-based, common sense approach to making calculated decisions on people, reputation, and environmental factors The process of identifying, assessing, and controlling risk Operational risk management is a way to manage risk and applies to everything we do. Explain the 2 definitions and operational risk

Why do we manage Operational Risks? To keep us a viable and highly respected girl organisation For our own physical and psychological safety To grow competent Leaders and Managers in your District and Region For the safety of the girls To meet legal requirements of ‘reasonable care’ (WHS Act 2011) There are a number of reasons for managing operational risks. Discuss those listed

Region and District Managers Role Identify operational hazards Assess the effect that they will have on the Region or District - positive and negative Control the risk where needed Region and District Managers have three key roles in relation to operational risk management.

What are the main hazards to Regions and Districts? Safety Financial Unqualified Leaders Reputation Non approval for events Child protection Property Social Media Intellectual property

When would you complete an operational risk assessment? Annual ‘health check’ When big decisions are being made When future planning is being done There are 3 key times an operation risk assessment needs to be done: Undertaking your District, Region or State annual health check When big decisions are needed to be made When future planning is being done ie When deciding on significant financial decisions When considering significant building works When choosing social media platforms

4 Step Process (ORP) Identify, Assess, Control, Reassess Identify the hazard (GGA buckets) Assess the consequence and likelihood of the risk for the hazard Control the risk Reassess the risk and determine if it is acceptable

Risk Buckets Governance Risk to reputation and risk to governing rules(legal liability) 2. Guiding (Activities of Guiding) Risk that activities are not appropriate to the philosophy, principles and method of Girl Guides Australia. Activities are planned that are not suitable and do not meet the developmental needs of the participants 3. People The physical, emotional, and psychological well-being of all members and participants is paramount to our beliefs. Includes all members (youth and adult), volunteers, parents, activity providers, general public, business associates. This in one of our BIG changes. We have put some detail behind the risk areas in guiding in Australia. We call these risk buckets. They cover what we believe to be the biggest risks for Guiding in Australia. When completing the ORP you need to consider the risks associated with each bucket. Discuss each bucket

Risk Buckets 4. Financial Financial consequence linked to cost of loss associated with risk 5. Guiding Operations (Business of Guiding) Day to day running i.e. unit leader consent forms not completed, activity notification forms not completed. Includes data integration, marketing, communications, compliance with business legislation, capacity and capability of units/districts/State offices to manage the business side of Guiding.

Step 1: Identify the Hazards Check incident reports Consult State Risk Representatives to see if others have similar problems Review plans for the coming year Use your experiences and that of other people Consult with managers in a similar position Inspect the meeting place Ask an expert Talk through possible hazards with others Discuss what is a hazard and what is a risk.

Step 2: Assess the Initial Risk Consequences table Likelihood table Risk Analysis table

Likelihood Rating Table DESCRIPTION Almost Certain The event is expected to occur in most circumstances. (At least 5 times a year) Likely The event will probably occur in most circumstances. (Twice a year) Possible The event might (or could) occur at some time. (Once a year) Unlikely The event will probably not occur. (Once in 5 years) Rare The event may only occur in exceptional circumstances. The next step is to work out the initial risk Discuss the 5 likelihood ratings

Consequences Rating Table Insignificant Minor Moderate Major Catastrophic The next step is to work out the consequences should the hazard occur. This is not absolute worst case scenario but the maximum reasonable outcome. 5 levels of consequences

Consequences Rating Table DESCRIPTION Insignificant Low level Impact with negligible consequences on the aim or activity objectives that can be controlled by routine management procedures.

Consequences Rating Table DESCRIPTION Minor The consequences would threaten the efficiency or effectiveness of achieving some aspects of GGA’s aim or activity objectives, requiring management effort to minimise impact.

Consequences Rating Table DESCRIPTION Moderate A significant/medium potential of affecting the achievement of GGA’s aim or activity objectives.

Consequences Rating Table DESCRIPTION Major A very high potential to impair the achievement of GGA’s aim or activity objectives.

Consequences Rating Table DESCRIPTION Catastrophic An extreme potential to threaten the sustainability of GGA or its aims and activities.

CONSEQUENCES – what is the maximum reasonable consequence? Risk Analysis Matrix   LIKELIHOOD RATING CONSEQUENCES – what is the maximum reasonable consequence? Insignificant Minor Moderate Major Catastrophic Almost Certain Medium High Extreme Likely Low Possible Unlikely Rare The next step is to rate the level for each risk There are 4 levels Low Medium High Catastrophic These are a combination of the likelihood and the consequence ratings

Step 3: Control the initial risk We control the initial hazard using the hierarchy of control. Three main levels Start at the top of the hierarchy of control as this is the most effective control. Eg Close the Facebook page PPE being the least effective control. Eg sunscreen and hat for outdoor activity Describe each level

Step 4: Assess the residual risk Repeat Step 2 taking into consideration the controls that will be used Is the level of risk now acceptable? We can now work out the residual risk rating, given the controls we will be putting in place Is the level of risk now acceptable or is further action required? Refer to Risk Priority Table on next two slides.

Risk Priority Table RISK PRIORITY ACTION One (Catastrophic) A catastrophic risk is one that must be dealt with immediately. State/National Executive management normally monitors catastrophic risks. Two (High) A high risk is one that should be dealt with after attending to catastrophic level risks. Managers at Region/State normally monitor high risks. If it sits in the high or extreme risk priority category you will need to escalate the risk concern to the next level of management. The higher the risk the higher the priority and the sooner you need to deal with the hazard.

Risk Priority Table RISK PRIORITY ACTION Three (Moderate) A moderate risk is one that can be dealt with by applying routine procedures and is normally dealt with by local Managers at the Region/District level. Four (Low) Risks in the low category may be accepted but should be monitored periodically to ensure the rating does not change.

Make a plan Work out what actions need to be taken in order to implement the control measure. Allocate someone to be accountable for each action . For the Operational Risk Plan to be followed it needs to be shared. Now it is time to plan the implementation of the control measures. Who needs to do what in order to implement the plan.

Reporting and Recording Once you have completed your ORP send a copy to your Manager Distribute to your team Discuss with your team Use the Action Plan Monitor the implementation, and update as required (at least annually) Explain what to do with the completed ORP

What do we have to support DMs and RMs? District, Region and/or State Team Learning Partner District Manager Region Manager State Risk Representatives Describe the support available

Where to from here? For those working on the Manager Qualification you will need to prepare or update the ORP for your Region or District as one of your Passport activities. All Managers should be updating their District or Region ORP on an annual basis as a ‘health check’. Explain what participants need to do next

Final Message By focussing on Operational Risks and planning for the future our members will grow into confident, self-respecting, responsible, community members.