|STEP 1 - IDENTIFY YOUR RISKS||At a basic level, identifying risks can start with a simple brainstorming exercise. It is best done by leaders with operational responsibility as they best know the practical aspects of any risk. Getting an external or independent perspective will also ensure that you don’t miss critical risks from being too close to the activity to be objective.|
|STEP 2 – ANALYSE YOUR RISK||Once you have created your list of risks, you need to do a simple exercise of systematically determining how important these risks are. Use the universal risk matrix table to help rank the risks based on the likelihood of occurrence and then just how much impact the event would have on your organisation.|
|STEP 3 - EVALUATE YOUR RISK||Once you have a list of analysed risks, it is time to prioritise them. Rank the risks in order of the highest risks to lowest. At this point many organisations get overwhelmed and give up. We recommend that you select the top 10 risks to start with. It is better to deal with the most important risks properly first, then move on to the other lower priority risks.
The next practical step is to evaluate your top risks by asking a simple question,
“Are we comfortable with the way this risk/uncertainty is being handled?”
|STEP 4 – TREAT YOUR RISK||There are five things you can do about a risk/uncertainty. The strategies are:
|STEP 5 – MONITOR AND REVIEW YOUR RISKS||Every organisation, big or small, should allocate one or two people to champion and manage the risk management process. They should provide regular reports to the board as well as coordinate the assessment of any new activities.
It is appropriate to conduct a comprehensive review annually and looking at any incident and near miss trends. It is best to schedule in advance.
|DOCUMENT THE PROCESS||It’s now time to complete a simple summary document of your risk management findings. This summary is commonly referred to as a risk register and summarises each step of the process.
At the AIRS office we have a template that you can use for a risk register. Please contact us for a copy and for further information.