Risk “A difficulty with much of the
literature stems from the impression
that risk management is a selfcontained entity, in reality, it is an
integral part of managers’ day-to-day
activity.”
Dowlen, 1995
Sharon Currie
HWL OH&S Adviser
Illustration of Shewart Cycle
or Deming Wheel
Risk Management Process
Identification
Identification
•What are the risks?
Assessment
•Likelihood/severity?
Monitoring
Assessment
Control
•Measures to reduce impact?
Monitoring
•Effectiveness of controls?
Control
•Emerging risks?
Sources of Risk
• Financial
• Strategic
• Operational
• Reputational
• Professional
• Technological
• Legal
• Contractual
• Environmental
Risk in Procurement
Process
Strategic/Corporate
Programme
Project








Strategic
Commercial
Financial
Environmental
Reputational
Quality
Cultural
Acquisition







Organisational
Projects
Procurement
Acquisition
Funding
Security
Health and
Safety
 Failure
SG Procurement Process Risk Management






Personal
Technical
Cost
Schedule
Resource
Operational
Support
 Quality
 Provider
Failure
Operations





Technical
Cost
Schedule
Resource
Provider
Failure
 Operational
support
 Quality
 Environmental
Infrastructure
Risk Rating
Likelihood
5 – Very likely
4 – Likely
3 – Fairly likely
2 – Unlikely
1 – Very Unlikely
Consequence
5 – Catastrophic
4 – Major
3 – Moderate
2 – Minor
1 – Insignificant
17-25 Unacceptable
17 10-16 Tolerable
5-9
Adequate
1-4
Acceptable
Strategies
Risk :
• Avoidance
• Reduction
• Transfer (Sharing)
• Retention
Avoidance
Reduction
Tolerate
Simple Risk Register
Item
No
Description
Risk
or
opportunity
Likelihood
Severity
Risk
Level
Action
1
Professional
Inability to
deliver
service
• Absence/
Turnover
• Failure to
recruit
skilled
personnel
5
3
15
Contingency
Planning
• Multi skilling
• Succession
planning
• Trainee
programme
2
Technical
Information
Security
• Loss of
equipment
• Hacking
3
3
9
• Protocols &
Policies – IT
Security
• Back up
systems
• Protocols
Loss of key
systems
• IT failure
/Website
3
Legal
5
5
25
Action
by
Status
Health Risks in construction
Excessive pressure of
work
Excessive noise
Hazardous substances
Asbestos fibre
Wood dust
Respirable Crystalline Silica
Stress
Hearing loss
Occupational Asthma
Chronic Obstructed
Pulmonary Disease
Silicosis
Dermatitis
Portland cement
Excessive vibration from
handheld tools and
equipment
Hand-arm vibration
Whole-body vibration
Resources:
http://www.scotland.gov.uk/Topics/
Government/Procurement/buyerinformation/spdlowlevel/risk
http://healthyworkinglives.com