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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 l.jpg
What is “Risk Management” Process?

  • Identify Threats/Hazards

  • Assess the Relative Risks

  • Implement ControlMeasuresand then…

  • Monitor and Review


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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


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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


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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)


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Risk Assessment

  • Likelihood X Severity of Consequence


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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


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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


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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


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Hierarchy of Controls

  • Elimination

  • Substitution

  • Engineering/Design

  • Administrative controls

  • Personal Action


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Hierarchy of Risk Treatments

  • Avoid

  • Reduce

  • Transfer to another party e.g. use of proxy

  • Retain