BSBRSK501 Manage Risk

Session 3

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Purpose of this presentation
At the end of this session, you should know how to:
determine likelihood of risk

assess the consequences of risk

evaluate and prioritise risk

determine risk treatment options

develop an action plan for treating risks.

NIT Presentation 3 Version 05/14

Likelihood of risk
Rare May occur only in exceptional circumstances.

Unlikely Event is unlikely to occur, but is possible

during the life of the project.

Possible Event could occur during the life of the

project.

Likely Event likely to occur once or more during the

life of the project.

Frequent Event will occur many times during the life of

the project.

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Consequence of risk
Catastrophic Regulatory intervention.

Breach of licenses, legislation, regulation or

Major mandated standards.

Moderate Adverse news in state media.

Minor Breach of internal procedures or guidelines.

Public awareness may exist, but there is little

Insignificant public concern.

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Evaluate risk

Extreme IMMEDIATE senior management action.

High Action plan needed, allocated responsibilities.

Medium Risk requires only monitoring and review.

Low Risk accepted - but not ignored.

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Risk treatments

Can you eliminate the Yes - then eliminate the risk.

risk?
Yes - then reduce the risk (e.g. by
Can you reduce the substitution).
risk?
Yes - then isolate the risk (e.g. with guards
Can you isolate the and barriers).
risk?

Can you reduce the risk Yes - then introduce administrative controls
by control? (e.g. safe operating procedures).

Then provide personal According to AS/NZ standard.

protection.

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Risk action plan
Should include:
the risk
risk rating
treatment activity or controls
roles and responsibilities for those involved
timeline
monitoring arrangements.

NIT Presentation 3 Version 05/14

The next step
You should now:

determine likelihood of risk

assess the consequences of risk

evaluate and prioritise risk

determine risk treatment options

develop an action plan for treating risks.

NIT Presentation 3 Version 05/14