Risk management - Common risks, Paul Bullen, Management Alternatives Pty Ltd

3. Common risks and possible responses

Below are examples of risks in community organisations and possible responses to those risks. The list of risks is not comprehensive.

Area of Risk	Examples	Response	Type of response
*Governance*	The governing body may not meet its responsibilities	Training and orientation Directors insurance	Reduce risk through changed practice Transfer risk
*Strategic directions*	The organisation may loose its way in a constantly changing environment	Strategic planning	Reduce risk through changed work practice
*Professional risks*	Staff may not be professionally competent	Recruitment and selection procedures Orientation program Supervision	Reduce risk through changed work practice
	Clients may receive an inappropriate service causing harm	Professional indemnity insurance	Transfer risk
	Clients homes may be the site of potential violence	Don't do home visits where there is a risk of violence	Avoid risk through not providing service
	Staff may not understand what they need to do in a given set of circumstances	Organisational manual	Reduce risk through changed work practice
*Physical risks*	Office equipment my be unsafe	Occupational health and safety committee and processes	Reduce risk through changed work practice
	Staff or clients may be involved in a car accident	Insurance	Transfer risk
*Legal*	Legal requirements may not be met	Register of all relevant legislation Compliance plan	Avoid risk through compliance
*Financial risks*	Finances may be insufficient to meet operational expenses	Financial planning	Reduce risk through changed work practices
	Fraud	Financial systems Audit	Reduce risk through changed work practices
	Fraud	Insurance	Transfer risk
*Property*	Fire	Provision of fire extinguishers; marked exists Insurance	Reduce risk through changed work practices Transfer risk
	Earthquake	Insurance	Transfer risk
*Environmental*	Tree damage to buildings from fallen trees or branches	Tree maintenance plan	Reduce risk through changed work practices
	Tree damage during storm	Insurance	Transfer risk
	Earthquake	Insurance	Transfer risk
	The community B-B-Q will be rained out	Halls on stand-by	Contingency planning