’
© Nicholas and Smith Pty Ltd
Slide 1
Content points
 Leadership & Culture
 Management Systems
 Risk Management Process
• Communication and
Consultation
• Establish the Context
• Identify the Risks
• Analyse the Risks
• Evaluate the Risks
• Treat the Risks
• Monitor and Review
© Nicholas and Smith Pty Ltd
Slide 2
The aim is to manage risk
An organisation can manage
risk by screening out events
which can either cause harm
or which can reduce the
chance of getting the best
possible outcome.
© Nicholas and Smith Pty Ltd
Slide 3
Leadership & culture
Leadership determines the
direction and culture of the
organisation. Leaders need
to promote common goals
and empower individuals at
all levels to act.
© Nicholas and Smith Pty Ltd
Slide 4
Management systems
Management systems,
standards, procedures and
practices, as well as
industry and government
requirements all have an
implicit role in risk
management.
© Nicholas and Smith Pty Ltd
Slide 5
Risk Management Process
Communication and consultation
Communication and
consultation with internal
and external stakeholders
is the first step of the Risk
Management Process. It is
also essential to every step
in the process.
© Nicholas and Smith Pty Ltd
Slide 6
Risk Management Process
Establish the context
No matter what an
organisation does, it
interacts with a wider
environment.
© Nicholas and Smith Pty Ltd
Slide 7
Risk Management Process
Identify the risks
A risk that has not been
identified cannot be
managed.
© Nicholas and Smith Pty Ltd
Slide 8
Risk Management Process
Analyse the risks
The aim of risk analysis is
to estimate likelihood and
consequences in the
context of any existing
control measures.
© Nicholas and Smith Pty Ltd
Slide 9
Risk Management Process
Evaluate the risks
The output of risk
evaluation is a prioritised
list of risks for further
action.
© Nicholas and Smith Pty Ltd
Slide 10
Risk Management Process
Treat the risks
The purpose of risk
treatment is to change the
risk to a level where the
benefit exceeds the cost of
treatment.
© Nicholas and Smith Pty Ltd
Slide 11
Risk Management Process
Monitor and review
The final step is to monitor
the risk management
strategy, plans and
practices. Are there new
risks? Will the risk
treatments still be effective?
© Nicholas and Smith Pty Ltd
Slide 12
Risk management
is part of normal business
Risk management is a
logical and systematic
process which needs to be
an integrated part of
normal business.
© Nicholas and Smith Pty Ltd
Slide 13
The greatest risk is to take no risk
“Without risk, there’s no
discovery, there’s no new
knowledge, there’s no bold
adventure . ... The greatest
risk is to take no risk”
June Scobee Rodgers
© Nicholas and Smith Pty Ltd
Slide 14
Further Information on Risk
Management
• A DVD on this subject is available for staff
to view. The DVD is approx 20 minutes in
duration and it can be obtained from
Andrew Wilsdon (contact tel no. 8412)
• For any further information you might want
on Risk Management to help you in your
work area please contact Andrew on 8412
© Nicholas and Smith Pty Ltd
Slide 15