1. AUSTRALIAN LOGISTICS COUNCIL SUPPLY CHAIN SAFETY AND COMPLIANCE SUMMIT MELBOURNE, 13 AUGUST 2014 RISK MANAGEMENT WORKSHOP PRESENTED BY: Paul Molenaar Director Compliance Experts Pty Ltd Colin Karlson Director Chain of Compliance

2. Risk Management (NLSC Audit Tool) WHS Act 2011 Requirements Part 2—Health and safety duties – Section 17 Management of Risks A duty imposed on a person to ensure health and safety requires the person: (a) to eliminate risks to health and safety, so far as is reasonably practicable; and (b) if it is not reasonably practicable to eliminate risks to health and safety, to minimise those risks so far as is reasonably practicable.

3. Risk Management (NLSC Audit Tool) Element 2.0 WH&S Risk Assessment and Compliance. What objective evidence are we seeking to establish compliance with NLSC criteria 2.01, 2.02 and 2.03 requirements? Criteria for this element are based on WHS Act requirements and AS/NZS ISO 31000:2009 - Risk Management— Principles and Guidelines (Note: The intent of these questions are focused on the Transport Task Risks. It is not intended as a full WHS Audit)

4. Risk Management Framework & Methodology Risk Management Framework: Set of components that provide the foundations and organisational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management throughout the organisation. Source: AS/NZS ISO 31000:2009 - Risk Management— Principles and guidelines

5. NLSC Criteria 2.01 NLSC 2.01 Criteria Requirement: Can you provide a workplace hazard/risk assessment register for this operation that demonstrates an effective control and review process pertaining to site and transport task risks? Considerations: Is there a site Risk Register which demonstrates effective control and review? Does the Risk Register contain reference to risk assessments which adequately reflect the organisations activities? Do the workplace Risk Assessments cover: site facilities and equipment, fleet, all transport tasks (eg: loading, unloading, coupling, use of pallet jacks, delivery point risks, etc.) – on and off site?

6. NLSC Criteria 2.02 NLSC 2.02 Criteria Requirement: Are the findings of these hazard /risk assessments effectively documented and acted upon, and measured against the appropriate standard or criteria? Considerations: Which Risk Assessment Framework is applied and is it an appropriate standard? Is the Hazard Identification/ Risk Assessment documentation available showing the process applied to determine suitable control measures? Who conducted the risk assessments and are they familiar with key risk management principles like Hierarchy of Controls? Have the Risk Assessment findings been acted upon?

7. NLSC Criteria 2.03 NLSC 2.03 (a, b and c) Criteria Requirements: Are actions arising from Hazard Identification and Risk Assessments: a) effectively addressed? b) effectively implemented? c) effectively monitored and reviewed? Considerations: Having documented the Risk Assessments, have the controls been implemented and have these been assessed to determine whether they were suitable to address the problems identified? Having implemented suitable controls, are these controls being effectively monitored and reviewed to ensure continued relevance? For example: What data is being collected to validate this? Site Inspections, Near Miss / Incident Reports, etc.

8. HVNL Chapter 5 Speed Chapter 6 Fatigue In Short: Any Party in the chain must take all Reasonable Steps to not cause a HV driver to speed or drive while impaired by fatigue Fine: $10,000

9. NLSC Speed and Fatigue Risk Assessment HVNL 10.4 – Provisions about liability “Reasonable Steps Defence” (RSD) 623 RSD Speed and Fatigue “A Party in the Supply Chain” Conduct risk assessment Reviewed annually Reviewed after each event

10. This applies to every Party Quote from VicRoads “Heavy Vehicle Speed Compliance” October 2009: “Drivers are not included in the chain, as they are covered by existing regulations” Satellite tracking or IVMS is not the complete answer

11. Start the Process Define which Party you are Refer to duties for each Party from chapters 5 & 6 into the risk assessment Examine the RSD examples for each Party Identify your tasks and activities

12. Continual Considerations “Ought to know what you reasonably ought to know” Knowledge, training and competency Guilty by act or omission

13. Tasks, Hazards and Risks CONSIGNORS & others Commercial Arrangements For Speed clauses 212 to 216 For Fatigue clauses 235 to 237 Contract or agreement will not cause ….. Duty not to make a demand …. Will not result in, encourage or provide and incentive to ……… Particular contract etc. prohibited…..

14. Tasks, Hazards and Risks Consignors, Load Managers & others Time frames in contracts or agreements Work time verses transit time Point to point times, not drivers work time No mention of contingencies, holidays, environment, authority to stop the job IFOT rewards and penalties No schedule verification or skills No driver or supply chain consultation Time slot penalties

15. Tasks, Hazards and Risks Schedulers Drivers work and rest, goods or passengers (This can include Consignors) Knowledge, training & competency Verified schedules Consultation Contingencies Drivers second or other jobs

16. Tasks, Hazards and Risks Load Managers Communication to schedulers of time on site Managing time on site Communicating on site Queuing and parking Rest and ablution facilities (clause 239) Work environment and facilities

17. Tasks, Hazards and Risks Additional Considerations for Operators and Prime Contractors Fitness for duty ADR 65 compliance Exception report parameters NCR system

18. Considerations and Risks 3PL is a link in the chain Contract schedulers Local work verses linehaul RSRO Reasonable enquiry Competency of the Auditor Rigor of the audit enquiry tool Why do we do this?

19. Conclusion Thank you Contacts: Paul Molenaar Compliance Experts Pty Ltd PH: 03 9545 1452 www.complianceexperts.com Colin Karlson Chain of Compliance PH: 02 4982 4244 www.chainofcomplaince.com.au