Processes for risk management across the organisation
Overview
Introduction
Risk management involves identifying and managing risks. These include various risks to HWH's operation, workers, and clients.
Risks are inevitable, but risk management aims to reduce the chance of a client event from happening. If it does happen, risk management helps to reduce its impact.
Benefits of risk management can include:
reduced business downtime
reduced loss of cash flow
reduced injuries or illness to clients and workers
increased health and well-being of clients and workers
increased innovation, quality and efficiency through continuous improvement.
Identifying risks
Risk is the combination of an event's likelihood (chance) and the consequences (impact) if it does. Risk management aims to increase the likelihood and impact of a desirable outcome as much as possible. Risk identification is the process of finding, recognising and describing risks
Risks
Unmanaged risk is the level of risk before any action has been taken to manage it.
Managed risk is the level of risk remaining after considering the effectiveness of current controls (e.g., training, management plans, or using personal protective equipment). It is the level of risk remaining after plans have been put in place and followed.
Risk tolerance
Risk tolerance is an informed decision to accept a particular risk, with or without risk treatment, to achieve a goal.
Risk analysis
Risk analysis is understanding the nature, sources and causes of risks to determine the degree of risk.
The degree and consequences of risk together inform risk evaluation and decisions about risk treatment.
Risk assessment
Risk assessment is the overall risk identification, analysis, and evaluation process.
Risk evaluation
Risk evaluation is the process of determining whether the risk is tolerable or whether it requires risk treatment.
Risk treatment
Risk treatment is the measures taken to change the level of risk. Possible treatment responses include:
avoiding the risk
removing the risk source
making decisions or taking actions that change the likelihood and, or the consequences
sharing the risk with another party
tolerating the risk by informed decision.
Applies to all
parts of the service
HWH representatives, including key managers, principals and home support workers
Related Items
NDIS (Provider Registration and Practice Standards) Rules 2-18 (Cth)
Risk matrix A risk matrix is used during risk assessment to define the level of risk by considering the category of likelihood against the category of consequences. It aids in increasing the visibility of risks and assists management decision-making.
* Financial impact consequence ratings, litigation costs and fines may differ depending on our size and turnover at the time.
Responsibilities of key managers In the context of our policy, key managers include all of HWH's key managers, including principals.
Key managers are ultimately responsible for setting all risk management appetites in HWH. Their responsibilities are to:
set overall risk management strategy
understand the scope of risks faced by us
ensure robust oversight of risk at senior management levels
promote a risk-focused culture
promote open communications
assign clear lines of accountability and encourage a practical risk management framework.
Key managers must also ensure that risk management policies and processes are implemented and followed across HWH.
Responsibilities of risk manager If appropriate, key management personnel may assign a risk manager or a risk management committee to assume the responsibilities described.
The responsibilities of a risk manager/risk management committee:
Form an overall risk management strategy
Identify and prioritise risks across the organisation
Make risk management recommendations to key management personnel/board of directors/management committee.
Responsibilities of workers All workers should:
Follow client risk management plans
support clients to communicate and self-advocate if the client requests or requires support
assist the client, if they request or require support, in maintaining a risk management plan as safety needs change
inform the team of any changes to a client's safety needs
seek support from key management personnel to manage risk, if required
collaborate with relevant parties when concerns about risk management escalate to key managers
be actively engaged during supervision and team meetings to work through risk management issues
have a basic understanding of Aged Care and NDIS Quality and Safeguarding Frameworks
have a basic understanding of relevant WHS policies.
