Can You Risk It? - Insurance Commission of Western Australia

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Step 3 – Risk assessmentThis involves analysing the likelihood and consequences of each identifi ed risk using themeasures provided. When multiplied you can work out the overall level of risk.The purpose of this step is to separate high risks from low risks, to prioritisethose areas where resources should be allocated.• Likelihood: This is a qualitative description of probability andfrequency. What is the likelihood of the risk occurring?• Consequence: This is the outcome of an event or situation expressed qualitatively or quantitatively,being a loss, injury, disadvantage or gain. What is the consequence of the risk event?(Refer to Attachment A for an example of likelihood and consequences).KEY QUESTIONS• Look at the adequacy of existing controls. Identify what you currently do to control this risk.• What are the consequences if it occurs?• How likely is it to occur? (Evaluate likelihood based on existing controls).• Multiply consequences by likelihood to give a level of risk.• Review the level of risk determined against the acceptance criteria identifi ed inStep One (refer to Attachment A for an example criteria table).• Decide which risks are to be treated or accepted. Decide this by identifying atwhat value a risk changes from being acceptable to unacceptable.(Refer to Attachment B for a sample risk identifi cation form and risk register— the tools you will use to record your analysis).Can You Risk It? An Introduction to Risk Management for Community Organisations 6
Step 4 – Risk treatment and controlIf a risk is identifi ed as high or unacceptable then you should evaluate what else you can doto reduce the risk by implementing new risk controls or enhancing existing controls.What are your choices?• Reduce the likelihood of the risk occurring• Reduce the consequences of the risk occurring• Accept the risk on the basis that you are doing all things reasonable• Avoid the risk by discontinuing this activity—don’t do it!• Transfer the risk by way of contract, insurance, etc.KEY QUESTIONS• What do you currently do to control this risk?• What resources will you require to implement the chosen treatment?• Is it worth doing? i.e. cost versus benefi t consideration.7 Can You Risk It? An Introduction to Risk Management for Community Organisations
Page 1 and 2: Can You Risk It?AN INTRODUCTION TOR
Page 3 and 4: ACKNOWLEDGEMENTRiskCover acknowledg
Page 5 and 6: IntroductionRisk management is all
Page 7 and 8: WHEN DO WE NEED TO MANAGE RISK?Risk
Page 9: Step 2 - Risk identificationThe pur
Page 13: Relevant LegislationUndertaking a r
Page 16 and 17: Attachment ASample Risk Reference T
Page 18 and 19: Risks by Level of RiskActivity/Even
Page 20 and 21: NotesCan You Risk It? An Introducti
Page 22 and 23: IntroductionIt is important to have
Page 24 and 25: MAIN MENU SCREENThe main menu scree
Page 26 and 27: DATA ENTRY FORMThe Data Entry Form
Page 28 and 29: 3. REPORT - RISKS BY ACTIONThis but
Page 30 and 31: 5. EDIT CONSEQUENCE CATEGORIES AND
Page 32: Case StudyA sporting club undertake

Can You Risk It? - Insurance Commission of Western Australia

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