Policy Name: Policy Area: Date Approved: Policy Replaced: Last Review Date:
Risk Management Policy Board Charter February 2009 New Policy n/a OVERVIEW
The Australian New Zealand Risk Management Standard (AS/NZ 4360:2004) defines risk management as “the culture, processes and structures that are directed towards the effective managementof potential opportunities and adverse effects”. Risk arises in all aspects of organisations operations and at all stages within the life cycle of those operations. It offers both opportunity and threat, and must therefore be managed appropriately. This policy confirms Triathlon WA’s commitment to adopting a strategic, consistent and structured enterprise-wide approach to risk management in orderto achieve an appropriate balance between realising opportunities for gains and minimising losses. It should be read in conjunction with the Australian Standard on Risk Management (AS/NZ 4360 2004) which provides the overall framework for a risk management system. Risk management involves establishing an appropriate risk management infrastructure and culture, and applying logical and systematicrisk management processes to all stages in the life cycle of any activity, function or operation that includes risk. By minimising losses and maximising gains, risk management enables Triathlon WA to best meet its organisational objectives. 2. POLICY INTENT Risk Management is an integral part of sound management practice and an essential element of good corporate governance, as it improvesdecision-making and enhances outcomes and accountability. The aim of this policy is to ensure that Triathlon WA make informed decisions with respect to the activities that they undertake by appropriately considering both risks and opportunities. 2.1. Policy Objectives The application of this policy and related procedures will provide the basis and framework for: • • • more confident and rigorousdecision-making and planning; better identification of opportunities and threats; pro-active rather than re-active management;
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TRIATHLON WESTERN AUSTRALIA RISK MANAGEMENT POLICY
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more effective allocation and use of resources; improved incident management and reduction in loss and the cost ofrisk, including commercial insurance premiums; improved stakeholder confidence and trust; a clear understanding by all staff of their roles, responsibilities and authorities for managing risk; improved compliance with relevant legislation; better corporate governance; and the development of a more risk aware organisational culture through enhanced communication and reporting of risk.
3. DEFINITIONSTriathlon WA will adopt a consistent terminology in relation to risk to ensure effective communication and stakeholder awareness of risk and risk management. In the context of this policy: “Consequence” means the outcome of an event expressed qualitatively or quantitatively, being a loss, injury, disadvantage or gain. There may be a range of possible outcomes associated with an event; “RiskManagement Plan” means the system within which risk information will be contained and maintained and the policy and procedural guidance to assist staff with embedding the risk management process into strategic and operational activities “Likelihood” means a qualitative description of probability or frequency; “Loss” means any negative consequence, financial or otherwise; “Risk” means the chance ofsomething happening that will have an impact on the achievement of Triathlon WA’s objectives. Risk is measured in terms of consequences and likelihood; “Risk analysis” means a systematic use of available information to determine how often specified events may occur and the magnitude of their consequences; “Risk appetite” means the amount of risk that Triathlon WA is prepared to accept or be exposed...