1. Managing Operational Risk
District and Region Managers
Welcome
Switch on webcam Introduce yourselves switch off webcam, but turn microphone back on.
This presentation is for those wanting to know more about Operational risk management and is required by those completing the District Manager or Region Manager Qualification including their assistants.
Click to change slides (with mouse over the top of the powerpoint picture or using ← or →on top toolbar).
Remind about Operational Risk Reference Manual (Download and print out, or use on screen)

2. How to interact today Type your questions and comments here
Your microphones need to be off as that helps everyone hear better.
For Questions:
Use chat box at bottom,
type question,
click send or ENTER
Try it out – say Hi in the chat box
Can also communicate with the tool in bottom left corner which changes the icon by your name… Put your hand up or send a smiley face now… Now undo.
………………(Facilitator 2) will be monitoring the chat box
Type your questions and comments here

3. Where are you from?
So that we get to know you better we would like to know where you come from.
Launch Instant Poll Question “What state do you come from?”
Click on Tools / Instant Polling / Click on the arrow alongside select from favourites and choose the question.
What state are you from? Click your answer.
Stop the poll/click snapshot/click announce in chat/add. Then close poll (repeat for all poll questions)
Click to change slides

4. What role do you currently hold in Guiding?
We would also like to know what you do in Guiding.
Launch Instant Poll Question “What role do you currently hold in Guiding?”
Click on Tools / Instant Polling / Click on the arrow alongside select from favourites and choose the question.
What role do you currently hold in Guiding? Click your answer.
Stop the poll/click snapshot/click announce in chat/add. Then close poll (repeat for all poll questions)
Click to change slides

5. GGA Risk Management Vision
WHAT - We believe in delivering innovative, fun and relevant programs in a practical and safe environment.
HOW- Our policy and processes for risk provide the ways for managing and reducing risks to support this vision
Discuss: This is our Vision for managing risk within GGA
Do they agree?
What do they know about the current processes?

6. Risk Appetite
Girl Guiding in Australia has an appetite to take reasonable risks.
We are not risk averse
We acknowledge that members and volunteers are accountable for their own behaviours, health and responsibilities within the Girl Guide organisation and to the community at large
Discuss the changes that have occurred in the last 2 years to reflect better who we are.
GGA has a clear risk appetite statement which makes it easier in what we should do as an organization.
Discuss: Appetite
Why is this statement important? What does it really mean on the ground?

7. Zero Tolerances
GGA has zero tolerance of a limited number of matters including:
We will not accept fatalities that are within our scope of influence
We will not accept serious injury as a consequence of our negligence
We will not accept bullying or any other poor behaviours that impact upon the well being of our members and volunteers.
GGA Risk Management Policy informs us that we will not accept the following as it does not fit with our purpose.
Discuss: Tolerances
Do they agree with these?
Why is there a Zero tolerance for bullying or poor behaviours?

8. Risk Management Properly understood risk management is an opportunity.
Risk Management should be seen as an opportunity, not a constraint

9. So what is Operational Risk Management?
A logic-based, common sense approach to making calculated decisions on people, reputation, and environmental factors
The process of identifying, assessing, and controlling risk
Operational risk management is a way to manage risk and applies to everything we do.
Explain the 2 definitions and operational risk

10. Why do we manage Operational Risks?
To keep us a viable and highly respected girl organisation
For our own physical and psychological safety
To grow competent Leaders and Managers in your District and Region
For the safety of the girls
To meet legal requirements of ‘reasonable care’ (WHS Act 2011)
There are a number of reasons for managing operational risks.
Discuss those listed

11. What are the main hazards to Regions and Districts?
Ask participants to answer the question in the chat box
Review answers given by participants
Click on slide to reveal answers.
Safety
Financial
Unqualified Leaders
Reputation
Non approval for events
Child protection
Property
Social Media
Intellectual property

12. What are the main hazards to Regions and Districts?
Safety
Financial
Unqualified Leaders
Reputation
Non approval for events
Child protection
Property
Social Media
Intellectual property

13. When would you complete an operational risk assessment (ORP)?
Annual ‘health check’
When big decisions are being made
When future planning is being done
There are 3 key times an operational risk assessment needs to be done:
Undertaking your District, Region or State ‘annual health check’. Things may have changed since last year, eg new unit, sold a hall, started a facebook page
When big decisions are needed to be made
When future planning is being done ie
When deciding on significant financial decisions
When considering significant building works
When choosing social media platforms

14. 4 Step Process (ORP) Identify, Assess, Control, Reassess
Identify the hazard (GGA buckets)
Assess the consequence and likelihood of the risk for the hazard
Control the risk
Reassess the risk and determine if it is acceptable
Operational Risk Management is a 4 step process

15. Risk Assessment Plan for Operational Risks
GGA has developed a template to assist Region and District Managers in managing operational risks.
Template is called GGA Risk Analysis and Action Plan for Operational Risks.
Available from GGA website or your state website.
During the session we will be using this plan to identify and assess several hazards relevant to districts and regions, and control the resultant risks. This is a similar process to the one leaders learn in the Being Safe Training.
You should have downloaded this with your logon instructions. If not, please do this now, as we will be working with this form during the rest of the webinar.

16. Risk Buckets Governance
Risk to reputation and risk to governing rules(legal liability)
2. Guiding (Activities of Guiding)
Risk that activities are not appropriate to the philosophy, principles and method of Girl Guides Australia. Activities are planned that are not suitable and do not meet the developmental needs of the participants
3. People
The physical, emotional, and psychological well-being of all members and participants is paramount to our beliefs. Includes all members (youth and adult), volunteers, parents, activity providers, general public, business associates.
This in one of our BIG changes. We have put some detail behind the risk areas in guiding in Australia. We call these ‘risk buckets’.
They cover what we believe to be the biggest risks for Guiding in Australia.
When completing the ORP you need to consider the risks associated with each bucket.
Discuss each bucket

17. Risk Buckets 4. Financial
Financial consequence linked to cost of loss associated with risk
5. Guiding Operations (Business of Guiding)
Day to day running i.e. unit leader consent forms not completed, activity notification forms not completed.
Includes data integration, marketing, communications, compliance with business legislation, capacity and capability of units/districts/State offices to manage the business side of Guiding.

18. Step 1: Identify the Hazards
Check incident reports
Consult State Risk Representatives to see if others
have similar problems
Review plans for the coming year
Use your experiences and that of other people
Consult with managers in a similar position
Inspect the meeting place
Ask an expert
Talk through possible hazards with others
There are a variety of methods that can be used to help identify hazards within the District or Region:
Check incident reports
Consult State Risk representatives to see if others have similar problems
Review plans for the coming year
Use your experiences and that of other people
Consult with managers in a similar position
Inspect the meeting place
Ask an expert
Talk through possible hazards with others

19. What is a hazard?
Anything that has the potential to cause harm or injury.
Ask participants to answer the question in the chat box
Review answers given - Correct answer: Anything that has the potential to cause harm or injury.
Click on slide to reveal answer.

20. Here are three operational hazards that we would find in most Districts or Regions
1. Facebook page set up with a brand new Unit Leader
as the administrator
2. Fundraising – the receipting and banking of biscuit money
3. Shortage of Leaders in the Units
Here are three common hazards that would be found in most Districts or Regions. We will be working with these three throughout today’s webinar.
Any questions so far? Please ask in the Chat Box.

21. Fill in the first column of the ORP
Now we are going to fill in the Risk Analysis and Action Plan for Operational Risk form, which you should have downloaded with your instructions and other resources for this webinar. You can print this document and write in it or follow the process on the screen.
The first step in completing the form is to add the identified hazards into the first column.
The three hazards we will be working with today have been added.
You may want to copy these into your printed form.
You will note that we have added two columns: Likelihood and Consequence. These are for today’s exercise only, and are NOT on the standards ORP form.

22. What is the harm associated with each hazard?
Harm for the facebook page: Leader unfamiliar with need for closed site, media permission, photos of girls with name tags etc
Harm in the fundraising scenario:
Loss of finds, poor recording, money kept at leaders house etc
Harm from the Leader shortage scenario:
Closure of units, programs altered or reduced, need for girls to travel, leaders stressed, parents upset etc
These possible problems have been entered into the second column on the form.
Can you think of any others? Write in the chat window.
Review comments

23. Step 2: Assess the Initial Risk
Likelihood table
Consequences table
Risk Analysis table
The next step is to work out the initial risk
For this we use three tables: Likelihood, consequence and risk analysis

24. What is a risk? The severity and likelihood of the hazard
Ask participants to answer the question in the chat box
Review answers given. Correct Answer: The severity and likelihood of the hazard.
Click on slide to reveal answer.

25. Likelihood Rating Table
DESCRIPTION
Almost Certain
The event is expected to occur in most circumstances (At least 5 times a year)
Likely
The event will probably occur in most circumstances (Twice a year)
Possible
The event might (or could) occur at some time (Once a year)
Unlikely
The event will probably not occur (Once in 5 years)
Rare
The event may only occur in exceptional circumstances.
Discuss the 5 likelihood ratings – these are clearly defined.

26. What is the likelihood of each hazard?
Let’s rate the likelihood of the hazards we identified
Facebook: ‘Likely’ (eg twice a year) as the administrator is a new Leader.
Fundraising: ‘Possible’ (might occur eg once a year) as we are working with a large amount of money.
Leader Shortage:’ Likely’ (2 changes already) as one Leader has just fallen pregnant and another is about to finish uni and is unsure where she will be working.
These have been entered into the third column – ‘virtual column’ just for this exercise.
You may have come up with slightly different likelihood ratings, but let’s work with these today.

27. Consequences Rating Table
Insignificant
Minor
Moderate
Major
Catastrophic
The next step is to work out the consequences should the hazard occur. This is not absolute worst case scenario but the maximum reasonable outcome.
5 levels of consequences
Click to change slide and discuss each consequence.

28. Consequences Rating Table
DESCRIPTION
Insignificant
Low level Impact with negligible consequences on the aim or activity objectives that can be controlled by routine management procedures.
Key phrases: Low level impact, negligible consequences, can be controlled by routine management procedures
Eg: no injuries, negligible financial loss, negligible disruption to non-essential infrastructure or data

29. Consequences Rating Table
DESCRIPTION
Minor
The consequences would threaten the efficiency or effectiveness of achieving some aspects of GGA’s aim or activity objectives, requiring management effort to minimise impact.
Key phrases: Threaten the efficiency/effectiveness of GGA aim or activity objectives, requires management effort to minimise impact
Eg. injuries require first aid, minimal financial loss, minor political impact, minor disruption to non-essential infrastructure or data

30. Consequences Rating Table
DESCRIPTION
Moderate
A significant/medium potential of affecting the achievement of GGA’s aim or activity objectives.
Key phrases: Significant potential, affect achievement of GGA aim or activity objectives
Eg. moderate financial loss or political impact, injuries require medical treatment only, medium term loss of some essential infrastructure or data

31. Consequences Rating Table
DESCRIPTION
Major
A very high potential to impair the achievement of GGA’s aim or activity objectives.
Key phrases: Very high potential to impair achievement of GGA aim or activity objectives
Eg. major financial loss or political impact, significant WHS incidents, long term loss of some critical infrastructure or data

32. Consequences Rating Table
DESCRIPTION
Catastrophic
An extreme potential to threaten the sustainability of GGA or its aims and activities.
Key phrases: extreme potential to threaten the sustainability of GGA aim or activity objectives Eg. huge financial loss or political impact, very serious WHS incidents, permanent loss of some critical infrastructure or data

33. Rate the consequences of the hazards identified earlier
Let’s rate the consequences of the hazards we identified earlier:
Facebook: Minor (management intervention may be required – there are only two girls in the district who are not permitted to be in photos for publication)
Fundraising: Moderate (moderate financial loss – with 120 cartons of biscuits ordered for the district if sales are not properly noted and receipted we are at risk of potential fraud)
Leader shortage: Moderate ( without Leaders we will not be able to keep all Units open and this will impact our ability to fulfil the mission of GGA).
These have been entered into the fourth column – remember this too is a ‘virtual column’.

34. CONSEQUENCES – what is the maximum reasonable consequence?
Risk Analysis Matrix
LIKELIHOOD RATING
CONSEQUENCES – what is the maximum reasonable consequence?
Insignificant
Minor
Moderate
Major
Catastrophic
Almost Certain
Medium
High
Extreme
Likely
Low
Possible
Unlikely
Rare
The next step is to rate the level for each risk
There are 4 levels
Low
Medium
High
Catastrophic
These are a combination of the likelihood and the consequence ratings

35. Risk is the combined likelihood and consequence of a given hazard
Any questions so far?
Reminder: What is the definition of Risk? Please answer in the chat window.
Level of risk is arrived at by combining the rating of likelihood and consequence of a given hazard

36. Work out the initial risk level for each identified hazard
Let’s work out the risk level for the hazards we identified earlier. Use your Risk Matrix if you have printed it out Reference Manual or OPR).
Facebook: ‘likely’ (likelihood in first column) with ‘minor’ (consequence across top row) make it a medium risk
Fundraising: ‘ possible’ with ‘moderate’ make it a medium risk
Leader Shortage: ‘likely’ with ‘moderate’ make it a medium risk
These have been entered into the fourth column.

37. Step 3: Control the initial risk
We control the initial risk using the hierarchy of control:
Three main levels
Start at the top of the hierarchy of control as this is the most effective control. Eg Close the Facebook page
PPE being the least effective control. Eg sunscreen and hat for outdoor activity
Describe each level

38. What control measures could be implemented?
Let’s look at some possible control measures for the hazards that we identified
Ask the participants to answer the question in the chat box

39. Add control measures to the plan
We have added a number of control measures to each identified hazard:
Facebook: Ensure the page administrator has read and understood the GGA Social Media Policy. Appoint a second administrator.
Fundraising: Create a biscuit sales register listing the families in the district and the number of boxes of biscuits they have been given to sell.
For the month of May ensure two people open and receipt the money received on a weekly or bi-weekly basis.
Leader shortage: Book a space at the local library to promote Guiding for a week with a focus on adult volunteers.
Assess the number of Guides in each Unit and determine if there are any Units that are over staffed.

40. Step 4: Assess the residual risk
Repeat Step 2 taking into consideration the controls that will be used
What is the new likelihood of each hazard?
Facebook: ‘Possible’ (reduced from ‘likely’)
Fundraising: ‘Unlikely’ (reduced from ‘possible’)
Leader Shortage: ‘Possible’ (reduced from ‘ likely’)
(Remember, assessments vary, but use the rating table)
What is the new consequence of each hazard?
Facebook: ‘Insignificant’ (reduced from ‘minor’)
Fundraising: ‘Minor’ (reduced from ‘moderate’)
Leader Shortage: ‘Moderate’ (consequence has not changed)
We can now work out the residual risk rating, given the controls we will be putting in place

41. Residual Risk Rating
What is the new (residual) risk rating of each hazard?
Facebook: Possible + Insignificant = Low
Fundraising: Unlikely + Minor = Low
Leader Shortage: Possible + Moderate = medium
Enter the Residual Risk rating into the plan and you are almost done.

42. Step 4: Assess the residual risk
Is the level of risk now acceptable?
Is the level of risk now acceptable or is further action required?
Please insert a smiley face next to your name using the tool below the chat box if you think these ratings are now acceptable.
Refer to Risk Priority Table on next two slides.

43. Risk Priority Table RISK PRIORITY ACTION One (Catastrophic)
A catastrophic risk is one that must be dealt with immediately. State/National Executive management normally monitors catastrophic risks.
Two
(High)
A high risk is one that should be dealt with after attending to catastrophic level risks. Managers at Region/State normally monitor high risks.
Risk Priority tables help us determine the action required.
If a risk sits in the high or extreme risk priority category you will need to escalate the risk concern to the next level of management.
The higher the risk the higher the priority and the sooner you need to deal with the hazard.

44. Risk Priority Table RISK PRIORITY ACTION Three (Moderate)
A moderate risk is one that can be dealt with by applying routine procedures and is normally dealt with by local Managers at the Region/District level.
Four
(Low)
Risks in the low category may be accepted but should be monitored periodically to ensure the rating does not change.
As the risks we have discussed are low or medium, local action only is required

45. Make a plan
Work out what actions need to be taken in order to implement the control measure.
Allocate someone to be accountable for each action .
For the Operational Risk Plan to be followed it needs to be shared.
Now it is time to plan the implementation of the control measures. Who needs to do what in order to implement the plan?
For our Facebook example the District Manager might be the one who needs to send the GGA Social Media Policy to the Leader and then follow up with her that she understands it.
At the next District Meeting it might be decided who will be the second administrator for the page.
This information should be recorded in the final two columns 5 and 6 of the plan.

46. Reporting and Recording
Once you have completed your ORP send a copy to your Manager
Distribute to your team
Discuss with your team
Use the Action Plan
Monitor the implementation, and update as required
(at least annually)
Explain what to do with the completed ORP

47. What do we have to support Managers?
Your own District, Region and/or State Team
Learning Partner
District Managers
Region Managers
State Risk Representatives
Describe the support available, also GuideLines website, GGA Risk Management policy

48. Where to from here?
For those working on the Manager Qualification you will need to prepare or update the ORP for your Region or District as one of your Passport activities.
All Managers should be updating their District
or Region ORP on an annual basis as a ‘health check’.
Explain what participants need to do next

49. What we have covered today
Defined Operational Risk Management
Identified hazards, assessed risk and developed control measures for Operational Risks in Regions and Districts
Prepared a Risk Analysis and Action Plan for Operational Risks (ORP)
Looked at recording and reporting requirements
Review what has been covered in the webinar

50. Final Message
By focussing on Operational Risks and planning for the future our members
will grow into confident, self-respecting, responsible, community members.