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MANAGE RISK AND WHS
Clustered Units
For the purposes of a small business, a
risk can be simply defined as an event
or circumstance that has a negative
effect on your business, for example,
the risk of losing money due to bad
business decisions
Challenger a risk case study:
https://www.youtube.com/watch?v=mG8BPB_oPlg
ACTB

This course is “interactive” – ask questions

Respect, Confidentiality, Practice

Ground Rules:
◦ Smile
◦ Support other learners
◦ Patience with others
◦ Be on time
◦ Speak to trainer if you have any
concerns

Slipping in the shower and seriously injuring
yourself

Getting burnt while cooking breakfast

Hitting a car while driving to work

Getting food poisoning after lunch at the
local take-away shop

Suffering a stroke due to a lifetime of
smoking
ACTB 4
Business risks can be broken up into the following
categories:

Strategic risks - risks that are associated with operating
in a particular industry
Compliance risks - risks that are associated with the


need to comply with laws and regulations.

Financial risks - risks that are associated with the
financial structure of your business, the transactions
your business makes and the financial systems you
already have in place

Operational risks - risks that are associated with your
business' operational and administrative procedures.

Market/Environmental risks - external risks that a
company has little control over such as major storms or
natural disasters, global financial crisis, changes in
government legislation or policies
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Can also be seen as direct and indirect risks

Direct Risks
◦ Natural disasters - such as floods, storms, bushfires,
drought and earthquakes
◦ Pandemic - such as human influenza, swine flu or bird
flu
◦ Legal - such as insurance issues, resolving disputes,
contractual breaches, non-compliance with regulations,
and liabilities
◦ Global events - such as pandemics and interruptions to
air traffic
◦ Technology - such as computer network failures and
problems associated with using outdated equipment
◦ Regulatory or government policy change - such as water
restrictions, quarantine restrictions, carbon emission
restrictions and tax
ACTB

Direct Risks
◦ Staffing - such as industrial relations issues, human
error, conflict management and difficulty finding
staff
◦ Suppliers - such as issues within their business or
industry resulting in failure or interruptions to the
supply chain of products or raw materials
◦ Market - such as changes in consumer preferences
and increased competition
◦ Utilities and services - such as failures or
interruptions to the delivery of your power, water,
transport and telecommunications.
ACTB
Risk management is the process of having a
plan or approach in place within the
organisation to protect any assets, including
people, physical resources and other assets so
that the organisational objectives can be
achieved.
Risk management involves the ability for
organisations to obtain a balance between
realising opportunities for gains while
minimising losses.
ACTB
29/02/2016

Direct Risks
◦ Environmental - such as climate change, chemical
spills and pollution
◦ Workplace health & safety - such as accidents
caused by materials, equipment, or location of your
work
◦ Property & equipment - such as damage from
natural disasters, burst water pipes, robbery and
vandalism
◦ Security - such as theft, fraud, loss of intellectual
property, terrorism, extortion online security and
fraud.
◦ Economic and financial - such as global financial
events, interest rate increases, cash flow shortages,
customers not paying, rapid growth and rising costs
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Indirect Risks

Consider how these scenarios could affect your
business:
◦ If your suppliers are affected, you may run out of the
products you sell, or the materials you need to make
products.
◦ If your customers are personally affected their priorities
may change and you could experience a reduced demand
for your products or services.
◦ If your general location is affected, you and your customers
may not be able to access your premises, or your utilities
could be affected. For example, you could lose power,
which could mean you:

will not be able to operate your business

may need to throw out any perishable goods and replace
them, which can be costly.
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Risk management is the process whereby
organisations identify, assess and treat risks that
could potentially affect their business operations. It
should be a central part to any organisation's strategic
management and its objective is to add maximum
sustainable value to all the activities of the
organisation.
A risk management plan is the documentation of risk
and its management strategies and is an essential part
of any business, as it helps you to understand
potential risks to your business and identify ways to
minimise them or recover from their impacts.
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• Provide a framework for your business that enables

future activity to take place in a consistent and
controlled manner
• Improve decision making, planning and prioritisation
by comprehensive and structured understanding of
business activity, volatility and project
opportunity/threat
• Contribute to more efficient use/allocation of
capital and resources
• Reduce volatility in the non essential areas
• Protect and enhance assets and the image of your
business
• Optimise operational efficiency
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ISO31000 as “effect of uncertainty on
A standard is how specifications and

objectives”

ISO31000 now supersedes the previous
standard but still includes the definition:

AS/NZS 4360 as “the chance of
something happening that will impact on
objectives.”
procedures are designed to make sure that
methods and materials are fit for the purpose
intended.

They are documents that are published to make
sure that the standards are consistent across
Australia

The guide for managing risk that will influence
the design and implementation of risk through
its objectives, its products, services and the
processes that it utilises.

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ISO means International Standard

Organisation

Aims to improve and advance risk
management through
benchmarking and the evaluation
of organisational practices

Universally recognised

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Brainstorming with staff

Observation of processes

Consultation:
◦ Staff feedback
◦ Customer feedback
◦ Networking with other business
◦ Industry membership groups

Company policy alignment to legislation

Open & supportive risk management plan

Philosophy that supports proactive risk
management

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An excellent tool that can be used to
Provide a comfortable environment

generate creative problem solving. It is
good to use brainstorming to:
◦ bring together a wide range of people with their
diverse experience and different meaning to
solving the problems that you face.
◦ assists in making sure you look at a problem
from a different perspective.
◦ Challenges people out of their comfort zone to
help come up with innovative and different
ideas.

Use icebreakers if people are not comfortable working
together

That one member is given the task of writing down the
ideas

Clearly describe the problem

Do not criticise and try to make sure that everyone
contributes new ideas

Encourage people to have fun

Make sure that are plenty of ideas to work with

Take regular breaks if your brainstorming session is
going to be a long one

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Informational job aids aimed at

compensating for lack of memory or Fishbone diagrams are also known as
attention Ishikawa Diagrams or Cause and Effect
Diagrams and look like a skeleton of a fish

Is helpful to perform the steps of a
as shown below.
task

Can be used as a schedule

Can be used to develop formal
procedures

Control their length

http://www.project-management-skills.com/fishbone-diagram.html
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Flowcharts are representative of a process and

Make sure that everyone knows what the
are used to demonstrate the steps involved in the
problem is
process.

Be clear

Pursue each line of causality back to its root
cause

Make sure that the cause of each category
is added to the tree

For control, if the branches become
overcrowded, split them.

Reflect and determine which has merit and
pursue them.

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Defining the process starting and ending

points

Completing the picture by filling the details
between the start and end

Making sure that each step is clear and
honest

Identifying and review steps that do not add
value - consider removing or altering

Pass the flowchart to other stakeholders
involved in the process and obtains
feedback from them.

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Involves the
◦ Assessment of various potential future events
1. Define the problem
◦ Development of scenarios that could be potential 2. Gather data
solutions 3. Separate certainties from the
◦ Evaluation of effectiveness of scenario
uncertainties

It is helpful in risk management to
◦ Reflect on your analysis of the internal and external 4. Develop scenarios
environment 5. Use the scenarios as part of your
◦ Determining the events that may impact on your
organisation’s risk management plan planning process

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Political can
include legal
aspects like
these…

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Introduction

Describe your organisation
• Introduction ◦ What is the name of your organisation?
◦ Where is it located
• Key Stakeholders ◦ What does it do?
• Risk context ◦ How many staff does it have?

What is the purpose of the Risk Management Plan
• Recommendations ◦ What are the goals of the organisation in relation to risk
management?
• Initial risk identification and risk treatment
Who are the key stakeholders in the organisation?
◦ Example: The owners, employees, customers etc

Does the organisation have WHS policies?

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Risk context
Recommendations & Risk

◦ What are the advantages of having a Risk
Management Plan in your organisation? E.g. meet
identification and treatment
your legal obligations ◦ Should follow and include the 6
◦ Is it easy to find the WHS policies in your
organisation? Why or why not? steps
◦ What are the fire-drill procedures used in your
organisation?
◦ What is the process used for incident reporting in
your organisation?

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STEP 1: Analyse potential risks
You will need to test, evaluate and update your risk
management plan regularly as risks can change as

STEP 2: Assess your business your business, your industry and the environment

STEP 3: Identify risks you operate in change.
Ways to test could include:

STEP 4: Analyse and evaluate impact

◦ Drills & Training

of risks
◦ Planning meetings

STEP 5: Treat Risks
◦ Scenario testing

STEP 6: Review risks ◦ Getting Support
Risk management basics: QLD Gov: https://www.business.qld.gov.au/business/running/risk-management/risk-
https://www.youtube.com/watch?v=BLAEuVSAlVM management-plan-business-impact-analysis/review-update-risk-management-plan

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Regularlyreviewing your risk
Every organisation should review

management plan is essential for: risks periodically
◦ Identifying new risks
The frequency of reviews depends
◦ Monitoring the effectiveness of on how risky the environment is
your risk treatment strategies
The risks could be assessed every
3 months, 6 months or annually

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Once you have developed a risk

management plan, you can conduct a
business impact analysis

A business impact analysis:
◦ is a systematic process to determine and evaluate
the potential effects of an interruption to critical
business operations as a result of a disaster,
accident or emergency
◦ will assess the likely impact of these risks on your
business operations

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the records and documents you need everyday

Critical business activities
◦ A business impact analysis identifies the
activities in your business operations that
are key to its survival.
QLD Gov: https://www.business.qld.gov.au/business/running/risk-
management/risk-management-plan-business-impact-
analysis/conduct-business-impact-anaylsis

the resources and equipment you need to
operate

the access you need to your premises

the skills and knowledge your staff have that you
need to run your business

external stakeholders you rely on or who rely on
you

the legal obligations you are required to meet

the impact of ceasing to perform critical business
activities

how long your business can survive without
performing these activities.

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Even if you have a successful
There are many options to

business, disaster could strike consider from:
at any moment and force you to
◦ Work cover
shut your doors.
◦ Business insurance

Companies typically carry
◦ Property insurance
insurance to mitigate the risk of
◦ Equipment insurance
unforeseen damage.

It might seem tempting to cut
costs by forgoing insurance
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Understanding the legislation

Applying the legislation in the workplace
◦ Developing a WHS Risk Management
Plan
◦ Developing a WHSMS in accordance
with the law

The act http://www.youtube.com/watch?v=sBz_CoJn6pQ

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duties to provide a safe and healthy workplace

Federal legislation for all workers and other people who attend the
workplace

Check the State/Territory that you
work systems that are safe and without risk to
health
work in for any additional
training of workers to work in a safe and
information competent manner

requirements to take steps to prevent injury,

It is your responsibility to know illness and disease

requirements to consult with employees and their
the difference and which ones representatives over WHS matters
relate to your region.
provisions for workplace inspectors to visit
workplaces, investigate accidents and enforce
provisions of the legislation.

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Common to all WHS legislation in Australia are

the following features:
◦ support for WHS in the workplace
◦ provision of systems of work that are safe and without
risk to health
◦ prevention of injury and disease through the elimination
or minimisation of risks
◦ protection of the general public’s safety and health
◦ workplace representation, consultation, co-operation
and issue resolution
◦ inspectors
◦ regulations
◦ enforcement.

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Theprocess of making or
Standards
Code Of
Practice
enacting laws.
Regulation

In simple words, it is the LAW
Acts

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In Australia the Acts are made by the

A rule of order having the force of
parliament

An ‘Act’ is a statute (law) passed by the law
parliament in Australia.
Developed to provide more details

There are 4 types of statutes and carry out the intent of the
◦ Commonwealth (Federal) Acts
legislation
◦ State Acts
◦ Territorial Acts
Provide practical details and rules
◦ British Statutes made under the Acts

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A code of practice provides
Standards are published documents

setting out the specifications and
practical guidance to the
procedures designed to ensure
industry on how to implement products, services and systems are
the law in the workplace safe, reliable and consistently perform
the way they were intended to do.

They establish a common language
which defines quality and safety
criteria

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regulates how personal information is handled.

The Privacy Act defines personal information as:

…information or an opinion, whether true or not,

and whether recorded in a material form or not,
about an identified individual, or an individual who
is reasonably identifiable.

Common examples are an individual’s name,

signature, address, telephone number, date of
birth, medical records, bank account details and
commentary or opinion about a person.
Privacy Act Aus Government:
https://www.oaic.gov.au/privacy-law/privacy-act/
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The WHS Act 2011 aims to:

Ensure that all employees are secure and
safe at work

To protect employees from risk arising from
their roles

To assist employers/employees and other
persons who require assistance as per their
obligations under law.

To provide remedies when obligations at not
met, through civil remedies.

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The code of practice based on the WHS Act 2011

The Regulations are made under the (Commonwealth) is the Work Health and Safety
Work Health and Safety Act. Code of Practice 2011.

The Regulations are about a wide
A code of practice provides practical guidance:
range of matters relating to work ◦ for people who have work health and safety duties
health and safety ◦ about how to achieve the standards required under the
Act
◦ about effective ways to identify and manage risks.
QLD Regulations:
http://www.legislation.qld.gov.au/legisltn/current/
w/workhsr11.pdf QLD Code of practice:
https://www.worksafe.qld.gov.au/laws
-and-compliance/codes-of-practice

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A code of practice applies to anyone who has a duty

of care in the circumstances described in the code.

In most cases, following an approved code of practice
would achieve compliance with the health and safety
duties in the Act, in relation to the subject matter of
the code.

Like regulations, codes of practice deal with
particular issues and do not cover all hazards or risks
which may arise.

The health and safety duties require duty holders to
consider all risks associated with work, not only those
for which regulations and codes of practice exist.

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Research activity

Go to:
http://www.comlaw.gov.au/Details/C2
011A00137

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Research activity

Go to
http://www.comlaw.gov.au/Details
/F2011L02664
(This will take you to the Federal
WHS Regulations 2011)

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with employees ensures that

the organisation is proactive in
regards to risk management.

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Internal stakeholders are people who support the

organisation and who are internal to the organisation,
including employees, investors and management.
Employees

External stakeholders include people who are
impacted by the organisation including the consumer
and the community.
Internal investors

It is important to know each perspective and their
objectives so that you can address their needs in the
Management
Risk Management Plan.

Take the time to work out what each party’s interest

in risk management is and use it to determine their
objectives

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Customers

Suppliers

Creditors

Government

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WHS representatives and committees

Workplace health and safety officer

Other agreed arrangements including:

Employees seeking industrial representation in
regards to obtaining assistance in WHS issues

Regular meetings

Brief talks about hazards and risks on a
regular basis

Work groups

Job task training

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Regular face to face meetings

Telephone meetings

Emails and other written
communication

Newsletters

Internal company memos

Posters in kitchen areas, common
rooms

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The WHS legislation requires

persons who conduct a business
or undertaking (PCBUs) to manage
all work health and safety risks,
so that the health and safety of
workers and other people are not
affected by an organisation's
conduct.

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Hazard
◦ A hazard is something that has the potential to
cause injury or harm to a person, property or the
environment. How many can you think of?
◦ It is a situation that can pose a threat to someone
or something. eg: Electricity, chemicals,

Risk
◦ A risk is defined as something that can happen that
could impact on organisational objectives, the
likelihood that harm can occur from the risk. eg:
working with electrical cables or working with
chemicals

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How to identify hazards
Hazards involving the risks of illness or injury

may include:
◦ Conduct a workplace inspection
chemicals and substances hazards - such as
◦ Consult stakeholders (and hazardous substances and dangerous goods,
experts) asbestos, lead and waste management

biological hazards and infectious diseases -
◦ Consult with workers such as legionella and swine influenza
◦ Review available information and
physical hazards - such as equipment,
conduct research confined spaces, electrical hazards and
working at heights

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manual tasks hazards - such as the use of

the human body to perform any kind of
manual task

environmental hazards - such as noise,
lighting, surrounding environment (including
uneven floor surfaces, etc.), cold, dust and
heat stress

psychosocial hazards - such as fatigue,
mental stress, workplace harassment and
occupational violence

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Eliminate

Substitute
or modify

Isolate

Engineer

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Human error,
Removing trip hazards cluttering

Lack of awareness,
Disposing of unwanted chemicals

Stress,

Removing hazardous plant or

Fatigue, substances

From influencing the selection of
Promptly repairing damaged
control measures equipment; and

From acting in an uncontrolled

Increasing the use of e-mail to reduce
manner; and
excessive photocopying and collation

Giving priority to operational or
production plans

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Substitution or modification of a hazard
Substitution of a hazardous

ensures that the hazard is minimised.

Substitution or modification should only be
considered when risk to employees has been
identified and when the changes will decrease
the level of risk for the person performing the
task.
chemical with a less hazardous
chemical

Substitution of telephone handsets
with headsets in a reception area

Substitute of smaller package or
container to reduce the risk of
manual lifting injuries like back
strain.

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The aim of isolation is to

separate the employees from
Use of a fume
the hazard. This can be cupboard to isolate
performed by putting up and store chemicals,
signs and barricades or and
placing the hazard in a
Use of remote handling
separate room; thereby equipment for
removing the hazard from the hazardous substances
main work area. and procedures.

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Engineering controls is the

next control option to
minimise risk within the
hierarchy of controls.

Engineering controls include
engineering modifications to
plant or to a system of work
needing to be changed.

Modification to plan

Installationof guarding on
machinery; and

Use of a ventilation system to
remove chemical fumes or dust.

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Administrative controls include

changing procedures and practices to
minimise risk.

Administrative controls should be
used to back-up and supplement
other controls that have been put in
place. These control measures may
be needed when your employer waits
for the evaluation and implementation
of other control measures.
ACTB

Regular maintenance of equipment
and plant;

Written procedures for all equipment
and work procedures; and

A training, education and
supervision program for
employees/contractors, which
includes preventative maintenance
and housekeeping procedures
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The final control measure under the hierarchy of

control pyramid is the use of personal protective
equipment (PPE).

PPE should only be used when the higher control
measures are not appropriate or adequate. They
can be used as a final barrier between the hazard
and the employee.

The use of PPE may require your employer to
make sure that you change your behaviour as PPE
does not control the hazard.

The PPE must be appropriate for the type of work
the employer is doing.

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Conducting regular Ensure all staff
What is involved in managing risks?

inspections of the members are
work areas properly trained

Management commitment
◦ Effective risk management starts with a commitment to
health and safety from those who operate and manage
Encourage staff to Investigate areas of the business or undertaking.
report any incidents concern ◦ You also need the involvement and cooperation of your
/ issues of concern immediately workers, and if you show your workers that you are
serious about health and safety they are more likely to
follow your lead.
Keep accurate records
◦ To demonstrate your commitment, you should:
Provide a safe
of incidents, accidents,
get involved in health and safety issues
working
near misses
invest time and money in health and safety
environment

ensure health and safety responsibilities are clearly
understood.

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A step-by-step process The Risk Management Process comprises 4

A safe and healthy workplace does not
happen by chance or guesswork.

You have to think about what could go wrong
at your workplace and what the consequences
could be.

Then you must do whatever you can (in other
words, whatever is ‘reasonably practicable’)
to eliminate or minimise health and safety
risks arising from your business or
undertaking
steps:

This process is known as risk management and
involves the four steps:
◦ identify hazards – find out what could cause harm
◦ assess risks if necessary – understand the nature of
the harm that could be caused by the hazard, how
serious the harm could be and the likelihood of it
happening
◦ control risks – implement the most effective control
measure that is reasonably practicable in the
circumstances
◦ review control measures to ensure they are working
as planned.

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The PPRR model is a comprehensive approach to

risk management.
◦ Prevention
◦ Preparedness
◦ Response
◦ Recovery

This model has been used by Australian
emergency management agencies for decades
and can save your business time and money
when responding to a setback, incident or
disaster.

Making sure you have followed these steps will
help maintain an effective plan

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There a number of circumstances that
Employers are required to let

other considerations may need to be
taken into account:
◦ People with a disability
◦ Returning to work after an injury
◦ English as a second language and
WHS training
◦ environment and impact on personal
health
WorkCover know any time an injury
occurs in their workplace, regardless
of whether or not the worker is
applying for compensation.

In Queensland, you have a legislative
obligation as an employer to lodge an
Employer's report within eight days of
notification of the injury.

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Rocky Road Restaurant:

Has some health and safety
issues

The WHS inspector has been –
what are the findings?
Let’s Brainstorm

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Identifying hazards in the workplace involves

finding things and situations that could
potentially cause harm to people. Hazards
generally arise from the following aspects of
work and their interaction:
◦ physical work environment
◦ equipment, materials and substances used
◦ work tasks and how they are performed
◦ work design and management

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Hazard Potential harm

Hazard Potential harm
Manual tasks Overexertion or repetitive movement can
cause muscular strain
Gravity Falling objects, falls, slips and trips of
people can cause fractures, bruises,
lacerations, dislocations, concussion,
permanent injuries or death
Electricity Potential ignition source.
Exposure to live electrical wires can
cause shock, burns or death from
electrocution
Machinery and Being hit by moving vehicles, or being
equipment caught by moving parts of machinery can
cause fractures, bruises, lacerations,
dislocations, permanent injuries or death
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Hazardous chemicals Chemicals (such as acids, hydrocarbons,
heavy metals) and dusts (such as asbestos
and silica) can cause respiratory illnesses,
cancers or dermatitis
Extreme Heat can cause burns, heat stroke or fatigue
temperatures Cold can cause hypothermia or frost bite
Noise Exposure to loud noise can cause permanent
hearing damage
Radiation Ultra violet, welding arc flashes, micro waves
and lasers can cause burns, cancer or
blindness
Biological Micro-organisms can cause hepatitis,
legionnaires’
disease, Q fever, HIV/AIDS or allergies
Psychosocial hazards Effects of work-related stress, bullying,
violence and work-related fatigue
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How to identify hazards
A risk assessment involves considering what

could happen if someone is exposed to a
◦ Conduct a workplace inspection hazard and the likelihood of it happening. A
◦ Consult stakeholders (and risk assessment can help you determine:
how severe a risk is
experts) ◦
◦ whether any existing control measures are effective
◦ Consult with workers ◦ what action you should take to control the risk
how urgently the action needs to be taken.
◦ Review available information and ◦

conduct research

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A risk assessment should be done when:

A risk assessment involves


◦ there is uncertainty about how a hazard may result
in injury or illness
◦ the work activity involves a number of different
◦Assessing the likelihood
hazards and there is a lack of understanding about
how the hazards may interact with each other to
◦Assessing the impact
produce new or greater risks
◦ changes at the workplace occur that may impact on
◦Calculating the Risk Level
the effectiveness of control measures.
◦ A risk assessment is mandatory under the WHS
Regulations for high risk activities such as entry
into confined spaces, diving work and live electrical
work.

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How often the hazard has the potential to harm

The number of people exposed to the hazard

New substances and plant
The length of exposure to the hazard

Amount of materials or exposure points
is introduced
The position of the employees in relation to the hazards

New work practices and
The skills and experience of the people exposed
procedures are
The special characteristics of the people exposed

Any elements that could distract personnel in the work
introduced environment

Changes are made to
Environmental conditions
process, equipment and
The work organisation – like rostering, shift arrangements
and the pace in which work should be performed
substances.
The introduction of new work processes and procedures

The effectiveness of existing control measures.

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is the means outcome or impact of

Probability of a given risk occurring, an occurrence. In other words,
such as: you need to be able to make a

Very likely (exposed to hazard judgement about how much harm
constantly) that workers may be exposed to if

Likely (exposed to hazard occasionally) they are exposed to the hazard.

Unlikely (could happen but only rarely)

Highly unlikely (could happen but
probably never will).

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a. A fatality
Whether there is more information available

b. Major or serious injury (serious damage to
health that may be irreversible, requiring
medical attention and ongoing treatment). This
is likely to involve significant time off work;
c. Minor injury (reversible health damage that may
need medical attention but limited ongoing
treatment). This means that it is less likely to
spend more than a day off work.
d. Negligible injuries (might sustain slight injury
and may require only primary first aid) and no
time off work

What specialists are available to consult

Whether surveys, environmental and medical
monitoring is needed

The records and data that should be reviewed
including employee complaints, staff turnover,
unscheduled absences and sick leave

Whether the organisations culture and the
behaviour of its staff add to the risk or are the
actual risk factor; and

Assess the training levels and competency of the
team.

ACTB 127 ACTB 128

What is the likelihood of an incident

occurring?

If an accident occurs, what would be the
magnitude of its consequence?

ACTB 129 ACTB 130

Are usually aimed at the negative consequences Legend (for opportunities)

of risk L = low opportunity,

manage by routine

The consequence measure therefore reflects the procedures

losses and undesired outcome that may arise M = moderate

opportunity, management
responsibility must be

However risk management is increasingly applied specified

to identify and prioritise opportunities as the risk H = high opportunity,

detailed planning required

associated at senior levels to prepare

for and capture
opportunity.

When considering the opportunities, the
likelihood measure need not change, as it will
describe the chance that a benefit will arise.

The consequence, however, must still be
adjusted.

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Cost benefit analysis to determine the
acceptance or rejection of treatment

Development of a risk action plan

Possible risk treatments/controls in order of
priority of resolution

Preferred options for treatment of risks

Timetable for implementation
ACTB

Treating risks involves working through options to
deal with unacceptable risks to your business.
Unacceptable risks range in severity; some risks will
require immediate treatment while others can be
monitored and treated later.

Your risk analysis and evaluation will help you
prioritise the risks that need to be treated. When you
are developing a plan for treating the risks, consider
the:
◦ method of treatment
◦ people responsible for treatment
◦ costs involved
◦ benefits of treatment
◦ likelihood of success
◦ ways to measure the success of treatments.
ACTB

Transfer the risk

You may be able to shift some or all of the
responsibility for the risk to another party through
insurance, outsourcing, joint ventures or
partnerships. You may also be able to transfer risk
by:

cross-training staff so that more than one person
knows how to do a certain task and you don't risk
losing essential skills or knowledge if something
happens to one of your staff members

identifying alternative suppliers in case your usual
supplier is unable to deliver

keeping old equipment (after it is replaced) and
practising doing things manually in case your
computer networks or other equipment can't be used.
ACTB
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Risk Rating Table example
Risk rating Description Action
12-16 Severe Needs immediate corrective action
8-12 High Needs corrective action within 1 month
4-8 Moderate Needs corrective action within 3 months
1-4 Low Does not currently require corrective action
133 ACTB 134

Avoid the risk
If it's possible, you may decide not to proceed with an
activity that is likely to generate risk. Alternatively, you may
think of another way to reach the same outcome that doesn't
involve the same risks. This could involve changing your
processes, equipment or materials.

Reduce the risk
You can reduce a risk by:
◦ reducing the likelihood of the risk happening - for example,
through quality control processes, auditing, compliance with
legislation, staff training, regular maintenance or a change in
procedures
◦ reducing the impact if the risk occurs - for example, through
emergency procedures, off site data backup, minimising exposure
to sources of risk, or using public relations.
135 ACTB 136

Transfer the risk- cont

Make sure you have adequate insurance
◦ Speak to your insurer to find out if you have the right insurance
cover for your business. Be sure to clarify whether you are covered
for the risks you have identified in your risk management plan.
Keep in mind that insurance policies may have different
definitions for certain incidents (e.g. flooding).

You should also check that you:
◦ have coverage for the loss of income you could incur if customers
affected by the crisis stop ordering your product or service
◦ have appropriate insurance to cover other related issues such as
on-site injuries to staff or visitors, or for loss of your customers'
goods or materials
◦ have coverage in case your supplier/s are affected by a crisis and
can't deliver necessary supplies for your business
◦ are meeting your workers' compensation obligations in case any
of your staff are injured in a crisis.
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Accept the risk You will need to test, evaluate and update your

You may accept a risk if it can't be avoided, risk management plan regularly as risks can
reduced or transferred. Other risks may be change as your business, your industry and the
extremely unlikely and therefore too environment you operate in change. Regularly
impractical or expensive to treat. However, reviewing your risk management plan is
you will need to develop an incident response essential for identifying new risks and
plan and a recovery plan to help you deal with monitoring the effectiveness of your risk
the consequences of the risk if it occurs. treatment strategies.

ACTB 139 ACTB 140

Strategies for testing your risk management plan

The following are some strategies for testing your plan.

Drills and training

You may be legally required to provide training and conduct drills to test some of the workplace
health and safety aspects of your business continuity plan, such as fire evacuation plans. If you Make sure that you understand
deal with hazardous materials, special equipment, or in risky environments, you may need to
provide training for your staff so they can do their jobs safely and respond appropriately if there is
an incident.
your organisations procedures

Planning meetings
Planning meetings are a good way to bring staff together to inform them of the business
continuity plan and their individual responsibilities in an incident.

Examine the plan as a group to identify problems and solutions. If you have developed a new plan
or updated your old one, this will highlight any oversights. You will then be able to modify the
plan before undertaking testing exercises (e.g. training or drills).

Scenario testing
Scenario testing works by simulating a live event and allowing staff to make decisions as the
scenario unfolds in much the same way they would in the event of a real incident. When writing
scenarios, think about the risks to your business that you identified in your risk management
plan. This will help you make the scenarios more realistic and give you a better idea of how
effective your plan is likely to be.

ACTB 141 ACTB 142

According to the law:

Available records
A risk assessment should be done when:

Results from inspections carried out ◦ there is uncertainty about how a hazard may result

Statistical data from various sources in injury or illness

Relevant experience ◦ the work activity involves a number of different
hazards and there is a lack of understanding about

Research how the hazards may interact with each other to

Specialist and expert judgement produce new or greater risks

Experiments ◦ changes at the workplace occur that may impact on
the effectiveness of control measures.

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Read over the Risk Determine
The detail and extent of recording will depend on the size
Control Plan with feasibility and of your workplace and the potential for major work health
team members required changes and safety issues. It is useful to keep information on:
◦ the identified hazards, assessed risks and chosen control
measures (including any hazard checklists, worksheets and
assessment tools used in working through the risk management
process)
◦ how and when the control measures were implemented,
Brainstorm for other Investigate industry monitored and reviewed
possible solutions regulations and ◦ who you consulted with
ensure they are met ◦ relevant training records
◦ any plans for changes.

There are specific record-keeping requirements in the
WHS Regulations for some hazards, such as hazardous
chemicals. If such hazards have been identified at your
Review and implement Communicate workplace, you must keep the relevant records for the
changes changes to all staff
time specified.
members

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