Safety Risk Culture

A positive safety culture leads to both improved health, safety and event risk outcomes. Studies have identified nine broad staff behaviours (referred to as culture actions) as vital to the development of a positive safety culture. As a consequence, safety competency is characterised as an ability to undertake the nine identified culture actions as part of the effective completion of relevant safety and risk management tasks.

The culture actions that foster strong safety culture should be demonstrated by senior managers and the Executive. These include:

1. Communicating your organisation’s values
2. Demonstrating leadership
3. Clarifying required and expected behaviours amongst staff as it relates to risk and safety
4. Personalise safety outcomes so that people see the human cost
5. Developing positive safety attitudes so it is seen as adding value rather than as a burden
6. Engaging and owning safety responsibilities and accountabilities and linking to performance management
7. Increasing hazard/risk awareness and preventive behaviours
8. Improving team member’s understanding and effective implementation of safety management systems
9. Monitor, review and reflect on personal effectiveness of senior managers

Without leading by example and walking the talk, safety and risk management will not get embedded into normal business.

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Victorian Bushfires Highlights Emergency Services Duty of Care

As the Victorian Government announces a Royal Commission into the bushfires that have devastated large areas across Victoria, a 2006 NSW Workcover prosecution of that state’s police handling of the Redfern riots, serves as a reminder of the level of care expected under OH&S laws for emergency services in hazardous environments. In that case, of the 217 police that attended the disturbance, 42 police sustained injuries ranging from psychological trauma to various levels of musculoskeletal injury.

The Industrial Court of NSW found that the NSW Police Service had failed in its duty of care to make the workplace that they controlled, safe and without risk. This is undoubtedly a difficult condition to achieve during civil disorder but still a responsibility under OH&S laws. The Court found that the risk of injury (not just resulting from injuries but the risk of injury), was great. It found that the personal protective equipment provided to some police was inadequate and the level of training provided in use of that equipment varied and was in some cases insufficient. The Court did not however find an absence of relevant policies and procedures for dealing with civil disturbances but rather that those policies and procedures were in some cases inadequate. The Service was fined $100,000 for its breach and poor risk assessment.

While the proposed Royal Commission in Victoria will undoubtedly look at all relevant preventative and preparedness measures taken by emergency services relating to the Victorian bushfires, given that this natural disaster is unprecedented in Australia’s history, it has stretched many of the human resources available to emergency services across the state. It will be with interest we watch the response of the Victorian Worksafe Authority in the disaster’s aftermath, given the precedent that was set from the Redfern riots in NSW.

Visit the Reliance Risk website for updates on risk management and assessment in Australia.

Evenst risk management - Reliance Risk

Major events are unlike any other business. They attract considerable media attention; draw sizeable investment from Government and/or the private sector; involve a mass gathering of participants; contain a non-negotiable start date; and are one-off, without the benefit of continuous improvement.

All this means that major events are exposed to a unique set of risks involving safety, security, legal, financial, environmental, project-based and, most importantly, reputational risk.
Preparation is essential

Risk management for major events must start early. This ensures that all essential event risk management criteria are set in place. Considerations include budget allocation, contract details, management systems, governance, risk, compliance and accountability structures.
Reliance Risk provides event specific services to assist major event organisers:

* Event Risk Management Plans - covering event context, risk registers, roles and responsibilities and insurance certificates.
* Event Safety Plans - including risk assessments, contractor safety and emergency management.
* Event Operating Plans - including detailing venue relationships, event team organisational structures, functional area suppliers, and event delivery plans.
* Event Risk Officers - provision of an event safety and risk on-site auditor and post incident loss investigator for events.
* Operational readiness - scenario planning, readiness inspections, desk-top exercises and simulations.
* Verification - audit of event risk management or crowd management plans.
* Crowd capacity estimates - we work with venues to establish appropriate crowd capacity estimates.

Reliance Risk Projects

Reliance Risk has a wealth of experience in major event planning in both risk, safety, security and operations, providing the right skills set to suit each client’s needs.

* Ocean Swims - Event Risk Assessment for the 2008 Cole Classic at Manly.
* Public Arts Exhibitions - Event Risk Management Framework and Operational Readiness Inspections; Sculpture by the Sea Bondi (2007) and Cottesloe (2008).
* Australian Tennis Open (2008) - Verification audits of Event Risk Management Plans.

Confusion over Risk Terminology

Often people in the sporting, venues and events industries confuse risk management terminology. Some commonly confused terms include:

* safety with risk – risks associated with personal injury (safety risks) often get confused with risks which are threats to achieving objectives in terms of likelihood and consequence.

* hazards with risks – hazards are typically the cause of a risk. In safety they may be a form of latent energy source causing injury. They get confused with the chance (likelihood) of a particular consequence occurring.

* risk management with risk assessment – the whole process of establishing the process, risk identification, analysis, selection of controls, monitoring, consultation and communication can get confused with the assessment phase of risk management which includes only risk identification, analysis and selection of controls

* risk assessment with risk analysis –risk assessment is the identification, assessment and selection of controls being confused with only the phase that establishes the likelihood and consequence of risk and compares the result against an acceptability criteria

* inherent risks with residual risk – inherent risks reflect the level of risk before controls are finally implemented. They get confused with the level of risk after controls are implemented. Technically, there can be three levels of risk:

1. inherent risk – the level of risk with no controls
2. gross residual risk – the level of risk with current controls
3. net residual risk – the level of risk once additional controls are implemented

* preventative controls with preparedness controls – preventative controls tend to prevent a risk from occurring, while preparedness controls tend to mitigate a risk’s impact

* most foreseeable risks with worst case scenario risks – most foreseeable risks are that are more likely to occur and that usually have lower consequences, rather than worst case risks which are, by their nature, rare events with catastrophic consequences

From our experience many of these terms get used interchangeably by different people within the same organisation. When there is no consistent agreed terminology, the subsequent confusion can detract from efforts to implement risk management across the company and negatively influence the risk culture. To address this, some organisations develop a Risk Management Framework. Such a document helps to define terms, methods, processes, policies, structures, roles and responsibilities. By doing so, this clarifies to the entire organisation how risk is to be managed and communicated effectively across the business.

~ Reliance Risk,Event Risk Management specialists

Risks to Events and Venues from the Current Economic Crisis

So how will the current financial crisis impact upon venues and major events industry in Australia? Clearly the current situation represents one of the most significant emerging risks to these industries experienced in recent times.

Revenues
Firstly, the falling exchange rate will make it less attractive for major US and European artists to tour Australia if our currency continues its current rapid slide. Sponsors of major events and public venues will become more selective in terms of their marketing spend and this will flow on to a reduction in revenues for sponsored entities. If the economic downturn continues towards a global recession, unemployment will increase and the public will have less disposable income to spend on discretionary items such as concert and major event tickets.

Expenses
As the credit crisis worsens across the financial sector, more of the insurance industry is likely to be affected. The loss of one of America’s largest insurers, AIG, shows the potential that the crisis presents to the insurance sector. As insurer profits diminish, insurance premiums will likely increase, given the current point in the insurance cycle.

Risk-Based Approach
The instinct for sports, venues and event organisers may be to batten down the hatches and cut costs. It is in fact, a time to review the organisation’s risk profile and manage risk effectively. Your organisation may have to take on more risk in a market that is shrinking. That is, assessing and mitigating the organisation’s financial exposures and liabilities while maximising opportunities presented by the changing economy. All this while maintaining compliance standards and continuing to differentiate your organisation’s brand and reputation from competitors. A tough ask but an important one!

In this environment, all businesses must fight harder to win every dollar and make a more concerted effort to keep every dollar that they have. Prudent risk management practices are the key.

For more information on Risk please visit Reliance Risk

The Ben Cousins Saga - A perfect example of Risk versus Reward in Sport

If risk is the chance of receiving a benefit but potentially a loss, then the Ben Cousins saga is a classic example of risk and reward. The challenge for AFL club Richmond, is to balance the chance of loss with the chance of achieving a gain.

As Cousin’s options for clubs in the AFL have dwindled throughout 2008, Richmond now appears to be offering the Brownlow medallist a lifeline; but the risks are high.

What is the chance of the reformed drug addict reoffending and the potential damage to the club’s brand, reputation and balance sheet through loss of ticket sales, membership and sponsorships? It was only 2005 when the Victorian Transport Accident Commission ended a long standing relationship and sponsorship with the Richmond Club following a drink driving incident involving a Richmond player. It was reported to have cost the club in excess of $500,000 per year.

The opportunities that Ben brings to the club are however considerable. A Brownlow medalist, seasoned midfielder and big potential crowd draw card are obvious. He could add considerable financial value to the club and its brand, if he remains ‘clean’. Onerous drug testing procedures imposed by the AFL and the club may be tolerable depending upon the club’s risk appetite and effectiveness of these control measures.

A risk-based approach to financial decision making can help sporting clubs make decisions about alternative courses of action. Risk management is not just about compliance with standards and the law, but is about minimising threats and capitalising on opportunities within an agreed framework.

For more information on event risk management - contact Reliance Risk.

Risks to Events and Venues from the Current Economic Crisis

So how will the current financial crisis impact upon venues and major events industry in Australia? Clearly the current situation represents one of the most significant emerging risks to these industries experienced in recent times.

Revenues
Firstly, the falling exchange rate will make it less attractive for major US and European artists to tour Australia if our currency continues its current rapid slide. Sponsors of major events and public venues will become more selective in terms of their marketing spend and this will flow on to a reduction in revenues for sponsored entities. If the economic downturn continues towards a global recession, unemployment will increase and the public will have less disposable income to spend on discretionary items such as concert and major event tickets.

Expenses
As the credit crisis worsens across the financial sector, more of the insurance industry is likely to be affected. The loss of one of America’s largest insurers, AIG, shows the potential that the crisis presents to the insurance sector. As insurer profits diminish, insurance premiums will likely increase, given the current point in the insurance cycle.

Risk-Based Approach
The instinct for sports, venues and event organisers may be to batten down the hatches and cut costs. It is in fact, a time to review the organisation’s risk profile and manage risk effectively. Your organisation may have to take on more risk in a market that is shrinking. That is, assessing and mitigating the organisation’s financial exposures and liabilities while maximising opportunities presented by the changing economy. All this while maintaining compliance standards and continuing to differentiate your organisation’s brand and reputation from competitors. A tough ask but an important one!

In this environment, all businesses must fight harder to win every dollar and make a more concerted effort to keep every dollar that they have. Prudent risk management practices are the key.

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