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What is “Risk Management” Process?. Identify Threats/Hazards Assess the Relative Risks Implement Control Measures and then… Monitor and Review. Conflict of Interest or Commitment vs Risk. conflict

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what is risk management process
What is “Risk Management” Process?
  • Identify Threats/Hazards
  • Assess the Relative Risks
  • Implement ControlMeasuresand then…
  • Monitor and Review
conflict of interest or commitment vs risk
Conflict of Interest or Commitment vs Risk
  • conflict
    • a potential source of inconsistency between one’s official duties and personal self-interest
  • Risk
    • A measure which combines the likelihood and possible severity of consequences of any conflict resulting in inappropriate influence on the objective exercise of one’s official duties
areas of risk
Corporate Governance

Commercial operations

Professional/Public liability

Duty of Care

Product liability

Economic/Financial Mgt.

Security/Fraud

Legal

Insurance

Political

OH&S

Human Resources

Loss of Data

Property damage

Business Continuity

Technology

Diseases/Public Health

Environmental

Areas of Risk
types of conflict
Types of Conflict
  • Direct Personal Benefits(bribes, gifts, commissions)
  • Close Personal Relationships(nepotism, patronage, biased judgement)
  • Conflict of Commitment(Time management, Intellectual effort, use of Facilities & Equipment)
  • Research (University funded vs personal/ company I.P. from research)
risk assessment
Risk Assessment
  • Likelihood X Severity of Consequence
consider likelihood
Consider Likelihood

What are the chances the risk will occur?

  • Almost Certain known to happen in this Organisation
  • Known to Occur happened elsewhere; could happen here
  • Could Occurcould happen, but rarely
  • Not likely could happen, but probably never will
  • Rare a remote possibility only
consider potential consequence s
Consider Potential Consequences

What is the worst-case outcome?

  • Insignificant Receives gift
  • Moderate….School supply budget overrun by 20%
  • Major….School cannot deliver course
  • Critical…… Loss of Intellectual Property with considerable

commercial potential while University retains liability

slide8

LIKELIHOOD

E

Rare

D

Not likely to occur

C

Could occur

(ie heard of ithappening)

B

Known to occur(ie has happened in the past)

A

Almost Certain(iea common or repeating occurrence)

Negligible

Very Low

Low

Medium

Medium

2 MODERATE

School supply budget overrun by 20%

Very Low

Low

Medium

Medium

High

3 MAJOR

School cannot deliver course

Low

Medium

Medium

High

Very High

4 CRITICAL

Loss of income plus retain liability

Medium

Medium

High

Very High

Extreme

A Simple Risk Level Estimator

CONSEQUENCE

1 INSIGNIFICANT

Receives gift

hierarchy of controls
Hierarchy of Controls
  • Elimination
  • Substitution
  • Engineering/Design
  • Administrative controls
  • Personal Action
hierarchy of risk treatments
Hierarchy of Risk Treatments
  • Avoid
  • Reduce
  • Transfer to another party e.g. use of proxy
  • Retain
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