Risk - Sharon Currie HWL OH&S Adviser “A difficulty with much of the literature stems from the impression that risk management is a self- contained entity, in reality, it is an integral part of managers’ day-to-day activity.” Dowlen, 1995 Illustration of Shewart Cycle or Deming Wheel

Risk Management Process Identification What are the risks? Assessment Likelihood/severity? Control Measures to reduce impact? Monitoring Effectiveness of controls? Emerging risks?

Sources of Risk

Risk in Procurement Process  Strategic  Commercial  Financial  Environmental  Reputational  Quality  Cultural  Acquisition  Strategic  Commercial  Financial  Environmental  Reputational  Quality  Cultural  Acquisition  Organisational  Projects  Procurement  Acquisition  Funding  Security  Health and Safety  Failure  Organisational  Projects  Procurement  Acquisition  Funding  Security  Health and Safety  Failure  Personal  Technical  Cost  Schedule  Resource  Operational Support  Quality  Provider Failure  Personal  Technical  Cost  Schedule  Resource  Operational Support  Quality  Provider Failure  Technical  Cost  Schedule  Resource  Provider Failure  Operational support  Quality  Environmental Infrastructure  Technical  Cost  Schedule  Resource  Provider Failure  Operational support  Quality  Environmental Infrastructure SG Procurement Process Risk Management

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

Unacceptable 10-16Tolerable 5-9Adequate 1-4Acceptable

Strategies Risk : Avoidance Reduction Transfer (Sharing) Retention

Tolerate Avoidance Reduction

Item No DescriptionRisk or opportunity LikelihoodSeverityRisk Level ActionAction by Status 1ProfessionalInability to deliver service Absence/ Turnover Failure to recruit skilled personnel 5315Contingency Planning Multi skilling Succession planning Trainee programme 2TechnicalInformation Security Loss of equipment Hacking Loss of key systems IT failure /Website 339Protocols & Policies – IT Security Back up systems Protocols 3Legal5525 Simple Risk Register

Excessive pressure of work Excessive noise Stress Hearing loss Occupational Asthma Chronic Obstructed Pulmonary Disease Silicosis Dermatitis Hazardous substances Asbestos fibre Wood dust Respirable Crystalline Silica Portland cement Excessive vibration from handheld tools and equipment Health Risks in construction Hand-arm vibration Whole-body vibration

Resources: Government/Procurement/buyer- information/spdlowlevel/risk