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Risk culture
Sally Bennett

2. Agenda Why is Risk Management important?
The Journey to a risk culture.
Understanding your risk culture
NDS Risk and Controls Framework
Key strategies
Typical barriers 2

3. -Captain Smith, Commander of Titanic
Risk Management
"When anyone asks how I can best describe my experience in nearly 40 years at sea, I merely say, uneventful. Of course there have been winter gales, and storms and fog and the like, but in all my experience, I have never been in any accident of any sort worth speaking about I never saw a wreck and never have been wrecked, nor was I ever in any predicament that threatened to end in disaster of any sort. You see, I am not very good material for a story"
-Captain Smith, Commander of Titanic 3

4. Treat or Manage the Risk
How it fits together
Framework
Process
Provides the framework for implementing a risk management plan
Provides the process for implementing a risk management plan
Mandate &
Commitment
Policy
Design Framework
Organisational context
Roles & Responsibilities
Resources
Communication & Reporting
Implement
Risk Management
Continual
Improvement
Monitor & review
Framework
Establish Context
Identify Risks
Quantify/Assess
Risks
Treat or Manage the Risk
Communicate & consult
Monitor & Review

5. ISO31000 Principles Creates value
Integral part of organisational processes
Part of decision making
Explicity addresses uncertainty
Systematic, structured and timely
Based on the best available
Tailored
Takes human and cultural factors into account
Transparent and inclusive
Dynamic interactive and responsive to change
Facilitates continual improvement 5

6. Risk Culture – 5 Cs Crisis Control Compliance Commitment Culture
High
Management Activity
Supervisory Activity
Management
Team Activity
Leadership
Low
Crisis
Control
Compliance
Commitment
Culture

7. Value- typical responses
Maximises use of resources
Improves level of service – client focus
Anticipates future problems
Improved decision making
Improved communications
Confidence in future from
Community/ shareholders
Customers
Employees
Learning environment
Business Excellence 7

8. How do we get there? Have a vision of the future
Understand where you are now
Identify the gaps
Develop a plan
Persistence and patience!! 8

9. The Hearts and Minds MINDS STRATEGY SYSTEMS STRUCTURE INFORMATION
In building an organisational system, there are two parts to the system, those things that define how the system is supposed to work, and the culture which is how the system really works.
Management processes drive the first bit, and strong leadership drives the second.
From here we are going to break these downt oundertsand how OHS can be managed across any organisation
VISION
RELATIONSHIPS
INFORMATION
HEARTS

10. The Maturity Journey BASIC GOOD BEST
Processes designed to keep a minimum level of robustness to the organisation.
Processes (typically) driven in an adhoc manner, uncontrolled and used on an as needs basis.
Process performance likely to be variable (inconsistent) and depends heavily on the efforts of relatively few people or small groups
Lack of formality
Meets minimum regulatory requirements
Processes designed to ensure robustness and some efficiency to the organisation
Some processes are repeatable, possibly with consistent results.
Process discipline is beginning to be rigorous, and where it exists it may help to ensure that existing processes are maintained during times of stress.
Processes and their outputs are visible to management at defined points, but consistency needs to be improved.
Management can effectively control the current situation and adjust and adapt the process to particular situations/ projects.
Using quantitative/statistical techniques, process performance is measured and monitored, generally predictable and controllable, and aligned to objectives. 10

11. Aim 11 Leadership Strategy and Planning Finance People
Client and market Focus
Innovation, Quality and Improvement
Basic
Informal governance framework
Board understand roles and responsibilities
Annual financial reporting and external financial audit, as required by legislation
Annual business plan
Risk management processes designed
Progress against organisational goals measured
Quarterly review against annual business plan and outcomes
Annual budgeting process
Annual financial reporting and auditing
Asset register in place
Chart of accounts
Fundraising conducted on ad-hoc basis
Billing and collection process
Recruitment process for qualified/skilled/competent people
Learning and development strategy
Informal performance appraisal system
OHS management system includes the identification, management and monitoring of OHS risks
Process for staff complaints/feedback
User friendly client interfaces and feedback mechanisms
Knowledge of product and services offered
Marketing/promotional/sales materials provided accurately describe products and services
Some consultation with clients, parents and carers with respect to service provision
Complaints/feedback documented and measured
Information on service and costing provided to client in an accessible format
Quality management plan for short-term (1 year outlook)
Transparent information and reporting systems
Good
Formal governance framework in place
Board approved delegations policy
Board understands roles and responsibilities and provides strategic direction
Board takes measures to fill gaps in skills/expertise
Audit committee in place
Three year strategic plan with clear goals and direction
Risk management processes designed and operating within the organisation
Evaluation process in place to measure organisational progress against goals and KPI’s measured
Quarterly review against annual business plan and outcomes – feeds into medium-term strategic plan review at end of each year
Medium-term budgeting process (operational and capital) with 3-5 year outlook
Annual financial reporting and auditing with effective internal/external audit function
Asset register and facilities management program in place
Standard chart of accounts
Fundraising conducted on regular basis
Billing and collection system
Recruitment and retention strategy
Formal performance appraisal system
Process for staff complaints/feedback incorporates an annual organisational health survey with results reported back to staff
User friendly client interfaces and feedback mechanisms with client surveys conducted
Good knowledge of product and services offered
Annual marketing plan includes provision of clear, easy to read marketing/promotional/sales materials
Regular contact with clients, parents and carers with respect to service provision
Quality management plan for medium-term (3 year outlook)
Transparent information and reporting systems and effective record management system
Asset control register in place
Best
Governance framework reviewed regularly
Board approved delegations of authority
Board understands roles and responsibilities and provides strategic direction and performance targets
Board members have the necessary skills and knowledge to ensure compliance including financial, operational, legal, risk and governance issues
Annual financial reporting and external financial audit, as required by legislation.
Audit and risk committee in place
Five year strategic plan with clear goals and direction
Comprehensive risk management framework is operating successfully within the organisation
Evaluation process in place to measure organisational progress against goals and KPI’s
Monthly reporting and review against annual business plan and outcomes with in-depth variance analysis, including:
Variance against financial and capital plans and budgets
Variance against strategic plans and objectives.
Long-term budgeting process (operational and capital) with 5-10 year outlook
Annual financial reporting and auditing with effective internal/external audit function and risk based approach to audit planning
Asset register and facilities management program in place which are updated regularly
Standard chart of accounts and integrated accounting/financial CRM system
Fundraising conducted on regular basis with annual calendar of events planned
Recruitment and retention strategy includes career pathways and succession planning (including for board members)
Learning and development strategy fosters strong learning culture, including leadership development and mentoring
Formal performance management and appraisal system linked to the organisations’ Mission
User friendly client interfaces and feedback mechanisms with client surveys conducted which feed continuous quality improvements within the organisation
Very good knowledge of product and services offered
Medium-term marketing plan includes provision of clear, easy to read marketing/promotional/sales materials
Regular contact with clients, parents and carers with respect to service provision and changes to the sector
Complaints management system in place
Quality management framework
Transparent information and reporting systems and integrated records management system
Asset management system in place
Aim 11

12. Template concept Element Y/N STEP 1: Risk/ Gap Identification
Detailed Element
STEP 2: Assess/ Evaluate
Set your goals
Element
Y/N
Basic
Trust Charter
Training
Good
Best 1
Element
Basic
Improving
Best
Governance
Strategy
Finance
Operations
STEP 3:
Use Risk Improvement Plan
Element
Gap
Controls
Actions
Who 12

13. Risk Culture – 5 Cs Crisis Control Compliance Commitment Culture
High
Management Activity
Supervisory Activity
Management
Team Activity
Leadership
Low
Crisis
Control
Compliance
Commitment
Culture