Risk Management

John Watt

Overview

An introduction to risk management standards and frameworks. An overview of organisational management of risk, illustrated in part by experience from the Athletes Village case study. How does health and safety risk management integrate with the wider organisational controls?

Overview

How do various stakeholders impact on the process? Risk is dynamic and changes things like budgets, design criteria or deadlines have an immediate impact on its management. Experience from the Athletes Village case study will show some ways that such challenges can be met. Communication with stakeholders means different things at different parts of the project. The Athletes Village stakeholder map will be used to show examples of this. It is necessary to have a dialogue with some stakeholders in order to decide what to do, whereas in other cases risk communication is more concerned with changing behaviour as part of a management process.

ISO 31000

Culture?

Embedding risk management involves an environment that can demonstrate leadership from senior management, involvement of staff at all levels, a culture of learning from experience, appropriate accountability for actions (without developing an automatic blame culture) and good communication on risk issues.
A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000 (IRM, AIRMIC and ALARM)

CONVENTIONAL RISK HANDLING

Deciding

Who needs to know what, when?

The knowledge Understanding needed for judgements and decisions

Management

Communication

Appraisal

Who needs to do what, when?

Most risk handling processes do not go beyond these steps

Bunting (2007). An introduction to the IRGC Risk Governance Framework

IRGCS RISK GOVERNANCE FRAMEWORK

Deciding

Getting a broad picture of the risk

Pre-Assessment

Risk Understanding assessment PLUS Concern assessment

Appraisal

Management

Communication

Is the risk tolerable, acceptable or unacceptable?

Characterisation and Evaluation

Is the risk simple, complex, uncertain or ambiguous?

Categorising the knowledge about the risk

Bunting (2007). An introduction to the IRGC Risk Governance Framework

Drivers

A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000 (IRM, AIRMIC and ALARM)

Risk management framework

A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000 (IRM, AIRMIC and ALARM)

Risk management process

A structured approach to Enterprise Risk Management (ERM) and the requirements of ISO 31000 (IRM, AIRMIC and ALARM)

Safety Risk Assessment

Judgements on: What are the hazards? What risk events could happen? How likely are they? How severe would the outcome be? Vulnerability?

Some definitions

Hazard situation which could cause harm e.g. an earthquake fault line; Risk the probability that a certain kind of harm is realised Risk assessment an essentially technical process of assessing risk Risk management a non-technical process of selecting safety measures

Stakeholder Involvement
Affected stakeholders External Scientists/ Researchers Regulatory bodies/industry experts Use existing routines to assess risks and possible reduction measures Regulatory bodies/industry experts Maximise the scientific knowledge of the risk and mitigation options External Scientists/ Researchers Regulatory bodies/industry experts Involve all affected stakeholders to collectively decide best way forward Actors

Civil society Affected stakeholders External Scientists/ Researchers Regulatory bodies/industry experts

Type of participation

Societal debate about the risk and its underlying implications

Dominant risk characteristic

Simple

Complexity

Uncertainty

Ambiguity

As the dominant characteristic changes, so also will the type of stakeholder involvement need to change
After Bunting (2007). An introduction to the IRGC Risk Governance Framework

Workshop

The development of London 2012 Olympic Games in East London is a project twice the size of Heathrows new Terminal 5 to be delivered in half the time. The biggest construction site in Europe creating thousands of new jobs with a peak site workforce of 9,000.

Transforming previously contaminated land into 110ha of new open space in a benchmark 21st century urban environment and 4,000 new homes.
More than 30 new bridges, 20km of roads and 8kmTens of kilometres of new utilities networks providing electricity, heat, water, sewerage and gas to the legacy communities

From this.

To this by 2012.