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Risk Management Lessons from Outside the United States Session 6 Slide Deck
Session 6
Slide 6-1
Session Objectives 6.1
Consider how a National Risk Management Standard Led to an International Standard
6.2
Discuss the ADPC Community-Based Risk Reduction Process
6.3
Discuss Various Risk Assessment Techniques Utilized by UN-HABITAT
Session 6
Slide 6-2
Australia and New Zealand • Similar in of: – – – –
Geography Social makeup Political frameworks Agendas (public, policy)
• Collaborate on risk management efforts
Session 6
Slide 6-3
Risk Management: Australia A systematic process that produces a range of measures that contribute to the well-being of communities and the environment.
Session 6
Slide 6-4
Risk Management: New Zealand The process of considering the social, economic and political factors involved in risk analysis; determining the acceptability of damage and/or disruption that could result from an event; and then deciding what actions should be taken to minimize likely damage or disruption. Session 6
Slide 6-5
AS/NZS 4360 • 1993: New South Wales Government Risk Management Guidelines • t Standards Australia and Standards New Zealand Technical Committee – AS/NZS 4360:1995 – AS/NZS 4360:2004 • Communication • Review/Improve Session 6
Slide 6-6
AS/NZS RM Methodology • Risk management: – “a process that identifies the level of tolerance a group has for a specific risk” – used to decide “what to do where risk has been determined to exist”
• At the center is Communication – A ‘two-way process” Session 6
Slide 6-7
AS/NZS Risk Communication • • • • •
Acknowledge presence of multiple potential stakeholders Identify key stakeholders Identify the issues and commence consultation process Begin stakeholder analysis and refine through dialogue Establish representation group of technical and stakeholder groups • Assess stakeholder acceptance of risk including implications of treating or not treating risk/s • Establish stakeholder acceptability criteria • Develop risk communication strategy
Session 6
Slide 6-8
AS/NZS RM Process • • • • • •
Establish the Context Identify Risks Analyze Risks Assess and Prioritize Risks Treat Risks Risk Acceptance Session 6
Slide 6-9
Establish the Context • Establishes the strategic, organizational and risk management contexts in which the process will take place • Criteria against which risk measured are established • Structure of analysis defined • Involves the following steps: – – – –
Define the problem Identify stakeholders Developing risk evaluation criteria Defining key elements Session 6
Slide 6-10
Identify Risks • Identify what, why and how things can arise as the basis of further analysis • Characteristics and interaction of the hazards, the community, and the environment that form the basis of the problem to be solved • Hazard analysis • Vulnerability analysis Session 6
Slide 6-11
Analyze Risks • How likely is the event to happen and what are the potential consequences and their magnitude – Determine risk controls – Analyze likelihood – Analyze consequence
Session 6
Slide 6-12
Assess and Prioritize Risk • Risk assessment = “the method used to define the likelihood of harm (probability x consequence) coming to an individual, group, or community or the occurrence of an event as a result of exposure to a sustenance or a situation.” • Risks ranked to identify management priorities Session 6
Slide 6-13
Treat Risks • Accept and monitor low-priority risks • For other risks develop and implement a specific management plan that includes consideration of funding • In emergency management, this is typically referred to as mitigation
Session 6
Slide 6-14
Risk Acceptance • Develop public awareness programs • Evaluate implementation process
Session 6
Slide 6-15
ISO 31000:2009 • International Organisation for Standardisation • ed by Australia and New Zealand • First international risk management standard • Similar to AS/NZS 4360:2004
Session 6
Slide 6-16
ISO 31000:2009 Diagram
Session 6
Slide 6-17
AS/NZS / ISO Differences • Principles of Risk Management – – – – – – – –
Risk management creates and protects value Risk management is an integral part of all organizational processes Risk management is part of decision making Risk management explicitly addresses uncertainty Risk management is systematic, structured, and timely Risk management is based on the best available information Risk management is tailored Others
• Defines risk to be “the effect of uncertainty on objectives” • Provides guidance on how RM might exist within the organization or agency performing it Session 6
Slide 6-18
ADPC • Asian Disaster Preparedness Center • Regional emergency management technical assistance and training resource center • Created in response to an expressed need to assist countries in the region with formulating policies and developing capabilities in all aspects of disaster management Session 6
Slide 6-19
Community-Based DM • Top-down RM resulted in ‘poorer outcomes’ • Vulnerable communities most negatively affected • Must involve vulnerable people themselves • Communities feel they are the best judges of their own vulnerability • Aim: reduce vulnerabilities and strengthen people’s capacity to cope with hazards Session 6
Slide 6-20
Participatory Approach • Local participatory method works well because the community are not only the primary drivers in the process, but also the beneficiaries • Community participation vs. community involvement
Session 6
Slide 6-21
Essential Features • The community has a central role in long term and short term disaster management • Disaster risk or vulnerability reduction is the foundation of CBDM • Risk management is linked to the development process • Community as a key resource in disaster risk reduction • Application of multi-sectoral and multi-disciplinary approaches • CBDM as an involving and dynamic framework Session 6
Slide 6-22
Tools and Methods
Session 6
Slide 6-23
Strategies • • • •
Self insurance Conducting seasonally based action Encouraging long-term investments Strengthening social and organizational structures • Making health and sanitation services available at the community level • Conducting advocacy and campaigns Session 6
Slide 6-24
The ADPC Process • Foundation is Disaster Risk Reduction • Six sequential stages – – – – – –
Initiating the disaster risk reduction process Community Profiling Risk Assessment Formulation of Disaster Risk Reduction Plan Implementation and Monitoring Evaluation and Session 6
Slide 6-25
UN-HABITAT • Mandated by the UN General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all • To help policy-makers and local communities get to grips with the human settlements and urban issues and find workable, lasting solutions • Assessing the Risk of habitats and settlements is central to the UN-HABITAT Disaster and Risk Management function.
Session 6
Slide 6-26
UN-HABITAT Techniques • • • • • • • • • • • •
Access Model Computer Assisted Techniques Disaster Risk Indexing Event Tree Analysis Failure Modes and Effects Analysis Fault Tree Analysis Historical Analysis Impact Analysis Participatory Analysis Pressure and Release Model Remote Sensing Social Survey Session 6
Slide 6-27
Session 6
Slide 6-1
Session Objectives 6.1
Consider how a National Risk Management Standard Led to an International Standard
6.2
Discuss the ADPC Community-Based Risk Reduction Process
6.3
Discuss Various Risk Assessment Techniques Utilized by UN-HABITAT
Session 6
Slide 6-2
Australia and New Zealand • Similar in of: – – – –
Geography Social makeup Political frameworks Agendas (public, policy)
• Collaborate on risk management efforts
Session 6
Slide 6-3
Risk Management: Australia A systematic process that produces a range of measures that contribute to the well-being of communities and the environment.
Session 6
Slide 6-4
Risk Management: New Zealand The process of considering the social, economic and political factors involved in risk analysis; determining the acceptability of damage and/or disruption that could result from an event; and then deciding what actions should be taken to minimize likely damage or disruption. Session 6
Slide 6-5
AS/NZS 4360 • 1993: New South Wales Government Risk Management Guidelines • t Standards Australia and Standards New Zealand Technical Committee – AS/NZS 4360:1995 – AS/NZS 4360:2004 • Communication • Review/Improve Session 6
Slide 6-6
AS/NZS RM Methodology • Risk management: – “a process that identifies the level of tolerance a group has for a specific risk” – used to decide “what to do where risk has been determined to exist”
• At the center is Communication – A ‘two-way process” Session 6
Slide 6-7
AS/NZS Risk Communication • • • • •
Acknowledge presence of multiple potential stakeholders Identify key stakeholders Identify the issues and commence consultation process Begin stakeholder analysis and refine through dialogue Establish representation group of technical and stakeholder groups • Assess stakeholder acceptance of risk including implications of treating or not treating risk/s • Establish stakeholder acceptability criteria • Develop risk communication strategy
Session 6
Slide 6-8
AS/NZS RM Process • • • • • •
Establish the Context Identify Risks Analyze Risks Assess and Prioritize Risks Treat Risks Risk Acceptance Session 6
Slide 6-9
Establish the Context • Establishes the strategic, organizational and risk management contexts in which the process will take place • Criteria against which risk measured are established • Structure of analysis defined • Involves the following steps: – – – –
Define the problem Identify stakeholders Developing risk evaluation criteria Defining key elements Session 6
Slide 6-10
Identify Risks • Identify what, why and how things can arise as the basis of further analysis • Characteristics and interaction of the hazards, the community, and the environment that form the basis of the problem to be solved • Hazard analysis • Vulnerability analysis Session 6
Slide 6-11
Analyze Risks • How likely is the event to happen and what are the potential consequences and their magnitude – Determine risk controls – Analyze likelihood – Analyze consequence
Session 6
Slide 6-12
Assess and Prioritize Risk • Risk assessment = “the method used to define the likelihood of harm (probability x consequence) coming to an individual, group, or community or the occurrence of an event as a result of exposure to a sustenance or a situation.” • Risks ranked to identify management priorities Session 6
Slide 6-13
Treat Risks • Accept and monitor low-priority risks • For other risks develop and implement a specific management plan that includes consideration of funding • In emergency management, this is typically referred to as mitigation
Session 6
Slide 6-14
Risk Acceptance • Develop public awareness programs • Evaluate implementation process
Session 6
Slide 6-15
ISO 31000:2009 • International Organisation for Standardisation • ed by Australia and New Zealand • First international risk management standard • Similar to AS/NZS 4360:2004
Session 6
Slide 6-16
ISO 31000:2009 Diagram
Session 6
Slide 6-17
AS/NZS / ISO Differences • Principles of Risk Management – – – – – – – –
Risk management creates and protects value Risk management is an integral part of all organizational processes Risk management is part of decision making Risk management explicitly addresses uncertainty Risk management is systematic, structured, and timely Risk management is based on the best available information Risk management is tailored Others
• Defines risk to be “the effect of uncertainty on objectives” • Provides guidance on how RM might exist within the organization or agency performing it Session 6
Slide 6-18
ADPC • Asian Disaster Preparedness Center • Regional emergency management technical assistance and training resource center • Created in response to an expressed need to assist countries in the region with formulating policies and developing capabilities in all aspects of disaster management Session 6
Slide 6-19
Community-Based DM • Top-down RM resulted in ‘poorer outcomes’ • Vulnerable communities most negatively affected • Must involve vulnerable people themselves • Communities feel they are the best judges of their own vulnerability • Aim: reduce vulnerabilities and strengthen people’s capacity to cope with hazards Session 6
Slide 6-20
Participatory Approach • Local participatory method works well because the community are not only the primary drivers in the process, but also the beneficiaries • Community participation vs. community involvement
Session 6
Slide 6-21
Essential Features • The community has a central role in long term and short term disaster management • Disaster risk or vulnerability reduction is the foundation of CBDM • Risk management is linked to the development process • Community as a key resource in disaster risk reduction • Application of multi-sectoral and multi-disciplinary approaches • CBDM as an involving and dynamic framework Session 6
Slide 6-22
Tools and Methods
Session 6
Slide 6-23
Strategies • • • •
Self insurance Conducting seasonally based action Encouraging long-term investments Strengthening social and organizational structures • Making health and sanitation services available at the community level • Conducting advocacy and campaigns Session 6
Slide 6-24
The ADPC Process • Foundation is Disaster Risk Reduction • Six sequential stages – – – – – –
Initiating the disaster risk reduction process Community Profiling Risk Assessment Formulation of Disaster Risk Reduction Plan Implementation and Monitoring Evaluation and Session 6
Slide 6-25
UN-HABITAT • Mandated by the UN General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all • To help policy-makers and local communities get to grips with the human settlements and urban issues and find workable, lasting solutions • Assessing the Risk of habitats and settlements is central to the UN-HABITAT Disaster and Risk Management function.
Session 6
Slide 6-26
UN-HABITAT Techniques • • • • • • • • • • • •
Access Model Computer Assisted Techniques Disaster Risk Indexing Event Tree Analysis Failure Modes and Effects Analysis Fault Tree Analysis Historical Analysis Impact Analysis Participatory Analysis Pressure and Release Model Remote Sensing Social Survey Session 6
Slide 6-27
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