Lecture 7 - Treating Risks - BSBRSK501B Treating Risks...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
BSBRSK501B Treating Risks Lecture 7 Kathleen Cashmere BAF Source: AS/NZS 4360:2004 & Management Theory & Practice, K Cole
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Faculty of Business & Finance Risk Treatment Every organisation should have stated policies with respect to how they will manage different levels of risk Once the risk has been identified and the potential and actual impact of the risk to the organisation is known, the optimal approach should then be determined
Image of page 2
Faculty of Business & Finance Risk Treatment Common approaches Elimination/reduction management Risk either eliminated or reduced to lowest possible level Can reduce the likelihood of the risk occurring or reduce the impact if it does occur Assumption of risk An organisation may decide to assume the risk because it is part of its core business activity eg insurance company An organisation may believe that there is nothing that can be done An organisation may determine that risk is so low is OK or that they cannot afford to deal with it Transfer of risk Eg insuring, sub contracting, contingency planning Outsourcing is very common
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Faculty of Business & Finance Risk Treatment Avoiding the risk Select another activity – too risky Defer Delay until a more suitable time or a better understanding of the situation or nature of the risk has emerged Share Joint ventures or arrangements co operative activities Diffusion Spread and minimise locations eg storing dangerous substances in several locations instead of one central place
Image of page 4
Faculty of Business & Finance Risk Treatment Ensure that by avoiding one risk you don’t create another Organisations can take out insurance or put aside funds to cover any anticipated damage With many risks there is legislation that compels you to take action to reduce or eliminate risk – no choice eg OH&S – specific obligation to control risk
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Faculty of Business & Finance Hierarchy of risk control Can you eliminate the risk Yes – eliminate No Can you reduce the risk Yes – reduce it No Can you isolate the risk Yes – isolate risk with barriers, guards etc No Can you reduce the risk administratively Yes – introduce polices, SOP’s etc No Provide Personal Protection according to AS Standards
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern