Wellington Shire Council in Victoria has implemented a strategy that ensures risk management is entrenched in the organisation’s every facet.
“We have implemented sound risk management practices at a time when the pressure to cope with increased liability is intense,” said Council’s CEO, Lyndon Webb.“Both public and private sector businesses have been reeling under the blow of a huge increase in premiums, while the new Wellington strategy resulted in significant cost savings in insurance premiums and potential claims, to an estimated value of at least $150,000.”
The strategy itself is a systematic process involving identification, analysis evaluation, treatment, monitoring and communication of risk.
“It can be applied to any situation where an undesired or unexpected outcome could be significant, or where opportunities are identified,” said Council’s Risk Management Coordinator, Don Rabbah. “Councillors and staff making decisions need to know about possible outcomes and take steps to control the impact of decisions they have or will make.”
There are six major steps involved, and they include the following.
- Gaining support of senior management and elected members.
- Development of a risk management policy.
- Communicating the policy.
- Managing risks at the organisational level.
- Managing risks at the program, project and team level.
- Monitoring and reviewing.
As a result of Council’s innovative strategy, Wellington’s risk management rating has gone from 73rd out of 78 Victorian Councils with a score of 59 per cent, to a rating of third with a score of 92 per cent. For its efforts, Council received the Liability Risk Management Excellence Award at last year’s Municipal Association of Victoria Annual Conference.
“To be most effective, risk management had to become a part of Council’s culture,” Don Rabbah said.
For further information, contact Don Rabbah, on (03) 5142 3317.
