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VIC Risk Management

 

Why Risk Management?

Risk management is the activities undertaken by an organisation to ensure that it understands the risks that it faces and makes informed decisions in managing these risks. An organisation which undertakes a strong set of risk control activities will:

  • reduce the likelihood and/or consequences of potential adverse events
  • maximise the results of positive events
  • provide decision-makers with information to assess risks in their business operations
  • ensure that the application of risk management practices adds value to the organisation
  • ensure that the organisation implements strategies that are cost effective.

All of this means that the organisation will increase the likelihood of success in its business operations.

Board members, CEOs and staff each have a responsibility to identify and manage the risks confronting their organisation.

To find out more about the responsibilities of Boards in relation to Governance and Risk Management, see PDF 208KB, RTF 91KB.

 

About this project

To support strong risk management in disability services, NDS, in partnership with the Victorian Managed Insurance Authority and the Department of Human Services, has developed a tailored 'Risk Management and Controls Model'. It is based around a self-assessment checklist designed to meet the needs of small, medium and large disability service providers across Victoria.

The model was first produced in 2009, and was rolled out with a state-wide training program. It has now been revised and redesigned on the basis of extensive feedback from members and experts. The model takes an organisation-wide view of risk, drawing on the Australian Business Excellence Framework. It encompasses six key elements:

  • Leadership
  • Strategic Planning
  • Financial Management
  • Innovation, Quality & Improvement
  • People
  • Client & Market Focus

The model recognises that different organisations may need differing levels of risk control activity, depending on organisational size and complexity, and their stage on the risk management 'journey'. It allows organisations to identify their current position on a maturity model, from 'basic' to 'intermediate' or 'advanced', and to set goals and strategies for moving forward.

 

Risk Management and Controls Model for disability services

PDF 1.36MB,  Word 1.07MB,  RTF 660KB

The model is now supported by an Excel tool (Excel 465KB) that provides automatic calculations for the Self Assessment Checklist, fills out the Key Element Summary Table, and produces charts that offer a graphic overview of your current risk management activities.

Please note that, on opening the file, you will need to follow the instructions to enable macros. You need not complete the checklist in one go. If you save the file, it will return to where you left off next time you open it. If you experience any problems with the Excel file, please do let us know so that we can fix any bugs.

Important: Do not complete the checklist in Excel without first reading the Introduction in the Risk Management and Controls Model.

 

Practical Resources

The Model is supported by six practical Risk Control Resources:

Governance Structure and Charter
Governance Structure and Charter assists in the direction and control of an organisation by ensuring that activities are undertaken with due diligence and accountability.
PDF 1.26MB,  Word 315KB,  RTF 248KB

Strategic Plan
Strategic Plan describes an organisation's aims and objectives to everyone connected with the organisation.
PDF 1.47MB,  Word 226KB,  RTF 215KB

Client Services Charter
The Client Service Charter guides employee conduct and provides clear expectations about their behaviours and organisational processes.
PDF 1.50MB,  Word 280KB,  RTF 145KB

OHS Management System Self Assessment & Audit Checklist
OHSMS assists organisations provide a safe and healthy workplace by improving safety performance.
PDF 3.27MB,  Word 389KB,  RTF 651KB

OHS Home Visit Checklist
A checklist for OHS issues in the home used in conjunction with a Client Behaviour Management Plan.
PDF 671KB,  Word 138KB,  RTF 287KB

Marketing Plan
The Marketing Plan also develops strategies to promote services to a broad or targeted group of prospective clients.
PDF 1.60MB,  Word 166KB,  RTF 195KB

Each Resource provides guidance for organisations requiring less sophisticated risk controls. Organisations are advised to consider risk management in each of the six elements and decide on the level of risk management activity to undertake based on their organisational and governance requirements and resources.

The Resources provide practical examples of relevant risk management activity and may be adapted as the basis for developing tailored risk management tools or processes.

Each Resource describes a step-by-step process to assist governance and management through the development of structured plans. Adopting a structured approach will support disability service providers to achieve their goals and manage risk appropriately.

 

The Upside of Risk Forum

This state-wide forum, held on 16 February 2011, focused on adopting a positive culture of risk and embedding risk management into organisational culture. The forum sessions highlighted the contemporary policy context and the challenges individualised service delivery presents for risk management.

The presentations are available on the NDS website.

 

Human Rights in a Market-Based Service System

This high-level think-tank and subsequent forum (PDF 339KB,  RTF 254KB) explored the risks and opportunities of upholding human rights in a more market-oriented environment. VMIA invite submissions to fund projects arising from this forum.



Other useful resources and links

Useful project pages on NDS Victoria's website include:


The Victorian Managed Insurance Authority (VMIA) for information and training.


DHS Resources Guide for community service organisations in the Victorian disability services sector (PDF 118KB) (October 2009) provides links to business advice to assist individual and networks of organisations in the Victorian disability services sector. There is information on organisations providing a range of support services to CSOs and more specific links are presented under the following topics:

  • Leadership
  • Strategy & Planning
  • Financial Management
  • People
  • Client and Market Focus
  • Innovation, quality and improvement.


The DHS Funded Agency Channel has resources on topics such as agency management, government planning, media and publications and communities. There is also a CSO Information Portal that contains resources, tools and links to support community sector organisations.

 

Independent Evaluation of the Risk Management Stage 2 Project

An independent evaluation of the Risk Management Stage 2 Project by consultants Lime Management Group has reported highly positive results. The evaluation considered the degree of impact that training in the 'Risk Management and Controls Model' had on CSO risk management practices. Both a Summary (PDF 242KB, Word 102KB) and Full Report (PDF 765KB, RTF 413KB) are available.

The evaluation found that the Model was 'highly relevant to the sector and suitably flexible' and 'strengthened the sector's capacity to deliver sustainable and high quality services'. Positive shifts were evident four to six months following the training session.

The evaluation recommends that NDS continue to support risk management activity, and consider refining the Model and self assessment tool to take account of the fast changing environment in the sector, and provide for a greater level of sophistication is some elements. NDS has accepted these recommendations.


Contact

For more information on the Risk Management Project contact:

Jane Farago
Projects Manager
NDS Victoria
Ph 03 8341 4305
jane.farago@nds.org.au

Risk spelt on red blocks that are balancing on a ball