Risk Management Framework A tool for managing flood risks for you, your family, your farm and your community. This risk management framework offers two key tools that can be used to prepare for floods and prevent / mitigate impacts at region, community or farm level: 1. The Risk Management Process: provides an overview of the 5 processes involved in risk management, including the core processes of risk assessment (3 steps) and risk treatment (mitigation of the risks) see Fig 1 2. The Risk Evaluation Tool: a grid that offers a way of analysing, evaluating and prioritising the risks you have identified see Figs 2, 3 and 4 1. The Risk Management Process The Process works through the steps as set out in the diagram below. The core of the process is risk assessment which is represented by the 3 steps in the central shaded box. Process 1: Communication and Consultation Fig 1: Process Overview Who are the people or groups who can make this work? Decide who needs to be involved in the process and how. Communicate with them from the start through to completion. 1 Page
Process 2: Establishing the Context Define objectives, important external and internal influences and set the scope and limits of the process. Process 3: Risk Assessment Risk assessment has 3 sequential steps: identification, analysis and evaluation. Step 1: Identification: 1. Identify significant risks for you, your family, your farm and your community. This could be the possibility of an event occurring or an issue arising and the possible impacts of these. 2. List these in the chart below. The topics in the first column are provided to prompt ideas. 3. Give each risk a one-word label. This will help with the next step. Topics Significant risks One Word Label Physical landscape River Farm buildings Equipment Information Communication Media Technology Health and wellbeing People Employees Family Neighbours School Work Livestock Power Vehicles Transport Roads Shelter Food Fodder Milking Product quality Pasture Clean-up Fig 2: Risk Identification 2 Page
2. The Risk Evaluation Tool Process 3: Risk Assessment (continues) Step 2. Analysis This tool is a grid that enables you to take into account two key factors for each risk you identify: 1. What is the likelihood that the event will occur or the issue will arise? Unlikely, possible or likely 2. What would the consequences be if it did occur? Minor, moderate or major Consequences may include impacts on health and well-being of people or livestock, quality of product, financial viability, physical and social infrastructure, longer term sustainability etc. Fig 3: Risk Analysis Grid Assess the likelihood and consequences of each risk you have identified and, write it in the relevant box on the chart overleaf. 3 Page
Now plot the risks you have identified, by name, on the chart below: Consequences Likelihood Minor Moderate Major Likely Reduce Risks: For immediate action: For URGENT action: Possible Monitor Reduce Risks: For immediate action: Unlikely Monitor Monitor Reduce Risks: Fig 4: Risk Analysis Evaluating the risks 4 Page
Process 3: Risk Assessment (continues) Step 3. Evaluation Risk evaluation means; Reviewing what level of risk you and your stakeholders can tolerate. Highlighting your highest priority risks that you will begin to address in some way in the short term and Exploring the options for treating each high priority risk and deciding on action. Process 4: Risk Treatment Treating the risk Involves planned action to modify the risk in some way so that the positive outcomes are maximised, and negative outcomes are minimised. Some risk treatment options include: avoiding the risk by preparing in advance (e.g. increasing fodder stocks) accepting the risk in order to pursue an opportunity removal of the source of risk (e.g. making changes to a building) making amendments to change the likelihood of the event occurring (e.g. installing or improving power generators) making amendments to change the consequences from the event (e.g. renegotiating contracts with processors re useful life of product) sharing the risks with others (e.g. via partnership with carrier) High priority Risks: Treat Risk by: First step: Date by: Fig 5: Risk Treatment 5 Page
Process 5: Monitor & Review The process of monitoring and reviewing involves regular checking or surveillance of risks and their proposed treatment. Have the planned actions been implemented? Have they had the desired effect? Are controls operating as they were planned? Have circumstances arisen that exposes the farm to greater risk or new risks? What are the lessons learnt from recent events? Are corrections necessary? 6 Page