1. Seminar brought to you by Risk Appetite vs Risk Capacity

2. Facilitator: Ron Browne Manager Professional Development ClubsNSW

3. Risk Appetite vs Risk Capacity Lloyd Robson National Business Manager Tabcorp

4. Risk Appetite vs Risk Capacity Presenter: Ron Browne Manager Professional Development ClubsNSW

5. Housekeeping

6. Definitions Risk the effect of uncertainty on objectives (AS/NZS ISO 31000:2009) Risk Management the coordinated activities to direct and control an organisation with regard to risk Risk Management policy the statement of the overall intentions and direction of an organisation related to risk management Risk Attitude an organisation's approach to assess and eventually pursue, retain, take or turn away from risk

7. Definitions Risk Appetite the amount of exposure the organisation is willing to accept/retain to meet its mission, goals or objectives Risk Capacity the amount of risk the organisation can actually accept Risk Tolerance the amount of risk the organisation is prepared to carry after risk treatments have been applied

8. Risk Management Structure AS/NZS ISO 31000:2009

9. Types of Risk Financial Turnover, reserves, financing Human Key personnel, theft & fraud, activities Strategic Wrong guidance, poor strategy, no strategy Operational Technological, equipment, premises

10. Types of Risk Reputational Governance, management, culture Environmental Fire, flood, earthquake, pollution, waste, detrimental impact Crisis in any of the above Emergency response/action (  Strategic Planning) and Business Continuity to Recovery

11. Risk Management Process Identify All risks to the business Assess Assess the likelihood of occurrence and the impact Evaluate/Prioritise Rank the risks on the basis of their risk rating Control Eliminate, Reduce, Share/Transfer or Accept Monitor Measure the outcomes and adjust accordingly

12. Risk Assessment Matrix

13. Example Club Risk Review RiskLikelihood Impact to business Risk Ranking Control Actioned by Resources needed Revised Risk Ranking CEO Departure MediumSevereHigh Succession planning and talent identification CEO & Chair Skills matrix, resumes, training Low Reduced Cash Flow HighSevereVery High Review market and marketing CEO & staff SWOT, Market review, Demographics and expenditure review Medium Bistro FireLowHighMedium Sprinkler System, Crisis Management Plan, Staff Training, Alternate facility review/ supply agreement CEO & F&B Manager/ Contractor Fire equipment and training, SOPs, negotiation with alternate facility or supplier Low Armed Robbery LowMediumLow Armed Robbery Prevention training, Standard Procedures, car park lighting, timer safe, emergency alarm button CEO & staff Training, car park lighting, timer safe, emergency alarm button Low

14. Strategies Crisis Management Plan –What are the triggers? –What are the actions and who is responsible? –Who should be notified? Business Continuity Plan –How will the organisation continue to trade? –What happens with the staff? –What happens to creditors and debtors? –What insurances need to be in place? –How long will it take to recover fully?

15. Case Studies Key Personnel –Sundance Financial –Centro Environmental –Ardlethan Bowling Club –Prime7 videoPrime7 video

16. Evaluation Survey Certificate

17. Further information and assistance ClubsNSW Member Enquiries Centre 1300 730 001 enquiries@clubsnsw.com.au ClubsNSW Learning & Development Team 9268 3000 education@clubsnsw.com.au

18. Questions?