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Risk Management - Risk and Insurance |
Risk Management
Defined by Australian/New Zealand Standard Risk Management, (AS/NZS 4360:2004)
“The culture, processes and structures that are directed towards realizing potential opportunities whilst managing adverse effects within the University environment”.
Purpose:
• Is to manage risks rather than eliminate risks.
• Risk is inherent in all activity/everything we do and by managing risks can reduce the chance of negative results or improving positive results.
• Establish a risk culture at USP, encouraging Risk Management to become part of effective management practice allowing for informed decision making.
Risk is: “the possibility of something happening that impacts on your objectives”.
It is the chance to either make a gain or a loss
• Minimizing adverse effects (reduce negative impact)
• Maximizing opportunities (more effective)
Risk is measured in terms of likelihood and consequence.
• Likelihood: Frequency/How often an event occurs.
• Consequence: Impact/Outcome of an event or situation.
Who manages risk?
Risk management plays a role in every decision and all University staff/students at all levels can practice risk management using tools such as training, communication, monitoring, reviewing, assessment, identifying controls etc.
Risk Management Process:
is the systematic application of management policies, procedures and practices to the tasks of : establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks.
To assist with the Risk Management Process, USP has developed the following:
