Risk minimisation

Cardinia Shire Council, determined to improve its risk management profile, has embarked on a highly successful risk management program.‘The Cardinia Way’, Cardinia Shire Council’s approach to organisational improvement and cultural change underpins the approach to risk management.

“Low risk management ratings over previous years indicated that Cardinia Shire had a significant risk exposure,” said Council’s Risk Management Coordinator, Bob Hannah.

Cardinia’s response resulted in the development of a risk management strategy that included the following.

  • Appointment of a Risk Management Coordinator.
  • Linking risk management performance to the key productivity indicators of all managers.
  • Linking risk management performance as a key target in Cardinia’s Enterprise Bargaining Agreement.

As a result of the program, SafetyMAP (Safety Management Achievement Program) accreditation was developed. This is an OH&S audit tool that helps to establish safer working environments by eliminating, or better managing, health and safety hazards.

“The current risk management benchmark rating is now 86 per cent,” said Bob Hannah.“Cardinia has gone against a statewide trend with a significant improvement in the process of minimising risk across the function and operations of Council. Risk minimisation is dependent upon a committed strategy and adoption of a risk awareness culture within the organisation, and in the Local Government sphere this has to include the volunteer committees of management essential to the delivery of Council services to the community.”

While Cardinia has put into operation arrangements to minimise ‘traditional risks’, such as OH&S, public injury, property damage and professional liability, there is still a need to expand the risk process to minimise all foreseeable risks. To this end, Cardinia is implementing an Integrated Risk Management Strategy.

In addition, Council has implemented a Business Improvement Strategy. This strategy is about systematic project facilitation by staff, to bring about improvements to work processes or management systems to enhance Council’s business or service delivery.

“The outcome of this approach is an organisation focused not only on getting the job done, but continuously asking is this the best way to achieve the outcome,” Bob Hannah said. “This will result in increased personal satisfaction, improved quality and certainty of services, which also will result in reduced risk. The key to achieving risk minimisation is the recognition that the process is continuous.”

For further information, contact Bob Hannah on (03) 5945 4222.