NSW Hang Gliding and Paragliding Association. (NSWHPA) Risk Management Plan Incorporating Risk Management Policy & Communications policy 2014

Transcription

1 NSW Hang Gliding and Paragliding Association. (NSWHPA) Risk Management Plan Incorporating Risk Management Policy & Communications policy 2014 Website: President Ralf Gittfried Vice President Nir Eshed Date of plan:

2 EXECUTIVE SUMMARY The NSWHPA is a non-profit volunteer sporting organisation providing management and financial support to all NSW Hang Gliding, Paragliding and Weight Shift Microlight Clubs. This also encompasses other forms of flying such as motorised Hang Gliding and powered Paragliding. We are the NSW Branch of the Hang Gliding Federation of Australia (HGFA). NSWHPA does not conduct events or competitions. The NSWHPA functions to implement policies and programs defined by the HGFA and to promote competitions, fly-ins, participation rallies and training facilities in the State in accordance with the HGFA Operations Manual and with the approval of the relevant State and Federal instrumentalities and land owners. The NSWHPA responsibilities include: Report to our membership on our activities, projects & funding. Co-ordinate and promote HGFA sports Acquire and disseminate information to clubs and members Promote competitions Facilitate training, coaching, instruction programs Promote and co-ordinate safety programs Pilot Development Assist Clubs with site negotiation Local and State Government liaison Report to the HGFA AGM 2

3 CONTENTS Executive summary... 2 Key stakeholder roles and relationships... 4 Formal relationships:... 4 Informal relationships:... 5 Contracts register... 6 Insurance arrangements... 6 Rules and policies... 6 Compliance... 6 Risk to Assets RISK MANAGEMENT PROCESS... 8 Introduction... 8 Context... 8 Identifying Risks... 9 Identification Methods... 9 Risk Register... 9 Risk Data Sheets... 9 Analysing Risks... 9 Likelihood Rating Scale Consequence Rating Scale Risk Rating Scale: Likelihood x Consequence = Level of Risk Evaluating Risks Treating Risks MONITORING AND REVIEW Procedures Risk management policy Risk management process: Responsibility: Risk register Communication policy

4 KEY STAKEHOLDER ROLES AND RELATIONSHIPS FORMAL RELATIONSHIPS: 1. Hang Gliding Federation of Australia (HGFA): The peak national body that regulates the sport. HGFA is the contact between the Civil Aviation Safety Authority (CASA) and individual pilots. HGFA is controlled by a volunteer Committee of Management which directs a full time paid administrative office staff based in Melbourne. NSWHPA relies upon the HGFA to collect pilots levies from all NSW pilots which is used to provide operating funds for the NSWHPA. Relationship status: the relationship between HGFA CoM is good; a committee member from NSWHPA sits on the HGFA CoM. The relationship between HGFA admin office and NSWHPA is good but there has been problems relating to transparency of reporting from HGFA to NSWHPA and accuracy of memberships reported and levies transferred. Reporting and accountability between HGFA and NSWHPA can be improved. 2. NSW Sport and Recreation (SaR): SaR is a major source for grant funding. SaR is a statutory authority that requires annual reporting from NSWHPA. SaR can be of greater assistance both financially through several different types of grants and through knowledge sources by way of workshops, information and other resources. NSWHPA could risk access to SaR by non compliance and poor management. Future NSWHPA committee members need to be aware of the need to continue a good working relationship with SaR. SaR can also be of benefit to local NSW clubs for club run events and competitions, in which case NSWHPA would assist the local clubs by providing expertise and assistance with SaR compliance requirements. 3. NSW pilots: Pilots in NSW have a state levy included with their annual HGFA fees. The levy is collected by HGFA on behalf NSWHPA and paid to NSWHPA. NSW pilots benefit from NSWHPA actions through funding to clubs and financial contributions to training courses and competitions. The risk to NSWHPA is if potential members fail to indicate to the HGFA that they are willing to have NSWHPA levies included with their HGFA membership fees, there will be a shortfall of funds to NSWHPA and an inaccurate accounting of NSW pilots. NSWHPA would benefit by raising the awareness and profile of the NSWHPA amongst NSW pilots and clubs. Action has been taken during 2014 to ensure that when ever NSWHPA funds are used for events that the NSWHPA is recognised as a financial sponsor of the event. 4. NSW Clubs: NSWHPA supports the NSW clubs through financial contribution of maintenance and upkeep programs. Other club run events such as competitions are also 4

5 supported. There is a risk of wastage of funds if clubs do not adhere to proper financial management. Therefore it is prudent for NSWHPA to expect financial reporting and accountability in return for funding. 5. ING Bank: This bank provides high interest accounts and term deposits. The term deposit has maturity dates which when it expires, becomes a low interest rate term account. The treasurer needs to be aware of the maturity date so a new term at the best rate can be locked in. Funds can only be transferred from ING to the NSWHPA Westpac account. 6. Westpac Bank: This is used for the working account. Risk: minimum two signatories are required for operation of the account; any two of at least three signatories is preferred. INFORMAL RELATIONSHIPS: 1. Private enterprise flying operators. Some private enterprise operators carry out competition and activities outside of the NSW Clubs. No formal relationship exists. The relationship needs to be formalised with waivers and other protection instruments such as guarantors in place. Risk is across financial exposure and litigation. a. Financial risk: Private operators have not been required to justify use of NSWHPA funds. Whilst NSWHPA encourage activities to enhance the sport there has been insufficient evidence or accountability to support funding requests. Funding guidelines need to be established. b. Litigation risk: Private operators have not been required to provide waivers or evidence of insurances for events where NSWHPA has been a contributor or sponsor. In the event of litigation NSWHPA could be exposed to joint liability with the operator. The HGFA insurance policy may not cover all of the exposure therefore NSWHPA capital reserves area at risk. 2. National Parks of NSW: No formal agreements exist between NSWHPA and National parks although there are flying activities taking place within National parks. To date National parks has informal verbal and local office written agreements allowing access to pilots. Risk is that National Parks may at any time prohibit flying activities from any or all areas of National Parks. Formal agreements and leases need to be in place to protect these flying assets 3. Media: NSWHPA has had a very low profile with the media. Typically in cases where the media are involved with our sport it is between pilots, clubs or the HGFA. Risk: In the event that the profile of the NSWHPA gets to the stage that the media could become interested, there is no media officer yet assigned on the committee. 4. North Ryde RSL. This relationship is used to host quarterly meetings. The RSL club provides low cost access to their function and board room for NSWHPA meetings. The risk is loss of facilities if insufficient notice is given for room usage. 5

6 CONTRACTS REGISTER NSWHPA has an agreement with SaR for an annual grant of $10,000. The annual grant requires NSWHPA to apply each year. INSURANCE ARRANGEMENTS NSWHPA is indemnified by association with HGFA RULES AND POLICIES NSWHPA is subject to the rules and polices of the HGFA as detailed in the HGFA Operations Manual. (OM) In addition to the OM, NSWHPA has the following policies: 1. Risk Management Policy 2. Working with Children 3. Sun Protection 4. Minority groups 5. People with Disabilities COMPLIANCE The general community expects NSWHPA to exercise an appropriate duty of care to all its associates, members and guests, and that it accepts its responsibilities to the community as a whole. Legislative requirements for activities conducted by NSWHPA, including compliance to federal, state and local government regulations in areas such as the environment, National Parks, State Forests and Crown lands. Some local clubs have established relationships and formal leases with these Stakeholders in their respective areas, but NSWHPA is responsible for these Stakeholders at a State level. NSWHPA is exposed to risks through breach of compliance which may result in financial losses, cause loss of reputation or bad publicity. 6

7 RISK TO ASSETS. Risk to assets might include: a lack of awareness on the part of directors as to the financial status of the organisation failure to recognise and take advantage of an opportunity to build club membership failure of a fundraising activity to generate a profit failure to deliver on obligations to sponsors failure to abide by NSWHPA constitution or meet incorporation obligations failure to provide safe operational policies or guidelines at events where NSWHPA has a vested interest. a breach of legislation that applies to activities such as employment, fundraising, gaming or licensing failure to adhere to contracts associated with contractors or sponsors failure to properly manage volunteers injury or death of a member failure to market, promote or manage an event properly unfavourable publicity resulting from a club activity failure to undertake strategic, operational or financial planning failure to seek or secure grants fraud or misappropriation of funds or information loss caused by obsolete and unreliable technology. Risks to NSWHPA may affect a range of areas, including but not limited to: assets and resources including equipment and infrastructure such as weather stations, webcams etc revenue and entitlements direct and indirect costs activities and events the environment intangibles such as reputation and goodwill 7

8 RISK MANAGEMENT PROCESS INTRODUCTION In-line with Australian standards, the NSWHPA approach to risk management requires five key steps:- Establish the context Identifying risks Analysing risks Evaluating risks Treating risks The risk management process includes communicating and consulting with stakeholders, and the continuous monitoring and review of risks. The process adopted by NSWHPA is depicted below. Figure 1: The AS/NZS 4360:1999 risk management process Communicate and Consult Establish the context. Objectives Stakeholders Criteria Key elements Identify the risk What can happen How can it happen Analyse the risk Controls Likelihood Consequences Level of Risk Evaluate the risk Evaluate Rank Order Treat the risk Options Responses Plan Implement Monitor and Review CONTEXT NSWHPA has three major factors of risk:- Strategic Context Organisational context Risk Management Context From which four categories of risk are evident. All identified risks will be assessed against these criteria:- 8

9 Safety (Persons & Property) Financial direct and in-direct (e.g.: Membership Losses) Image and Reputation (including Sporting Success) Compliance (including Legal) The NSWHPA Board of Management is responsible for the implementation of the Risk Management Program. IDENTIFYING RISKS Risk identification involves examining all elements of risk against the four risk categories identified. To constitute a risk three key components will be present:- A source Something at risk An effect Once a risk is identified a mix of knowledge, experience and lateral thinking will be applied to determine:- What can happen? How can it happen? What is the likelihood of it happening? What will be the consequences if it happens? IDENTIFICATION METHODS While a range of identification methods will be integral to the NSWHPA operations, including systems analysis, personal reports, audit recommendations, experience and record review, two key resources will be utilised:- Risk Register Risk Data Sheets RISK REGISTER A list of risks identified across management and operational areas should be recorded in the Risk Register and reviewed by the Board in-line with the Risk Management Plan. RISK DATA SHEETS New risks may be identified by anyone at any time. This approach facilitates a bottom up and top down assessment ensuring a comprehensive coverage of risks. New risks are documented on a Risk Data Sheet and provided to the Board for consideration to be entered on to the Risk Register. The Risk Data Sheet is simple and ensures that it does not inhibit any member completing this task. ANALYSING RISKS This step in the process involves analysing the likelihood and consequences of each identified risk, to determine its severity, and ensure that relevant actions can then be implemented. The analysis, 9

10 generally, utilizes a qualitative approach, however from time to time a quantitative approach may be possible based on data available. To assist the analysis process, a five point rating scale will be used. Through use of the rating scale, a clear picture of the risk degrees associated with each risk can be identified allowing the Board to prioritize resource usage to manage the most critical risks. Within the Risk Register, each identified risk is assigned a level for both Likelihood and Consequence, in line with the five point descriptive rating scales detailed below. These figures are then multiplied together to provide a Risk Rating. The rating scales are detailed below:- LIKELIHOOD RATING SCALE Level 1 Rating Rare Very unlikely Likelihood but not Description impossible Less Frequency than once in 15 years 2 Unlikely Plausible, could occur at sometime At least once in 10 years 3 Possible/Moderate Reasonable likelihood to occur at At least once in 5 sometime years 4 Likely High probability of occurring in most At least once per circumstances year 5 Almost Certain Will probably occur in most circumstances More than once per year CONSEQUENCE RATING SCALE Level Rating Negligible (Rectified by normal processes) Minor (Easily remedied with some effort) Moderate (considerable effort to rectify) Major (Requires intervention of top level management) Catastrophic (threatens survival of NSWHPA) Persons No injury First Aid Treatment required Medical treatment required Death or extensive injuries Safety Multiple deaths or severe permanent disablements Property No damage Internal Repair External Repair Extensive External Repairs Unrepairable / Replace Impact Financial Less than $1000 $ $10,000 $10,000 - $50,000 $50,000 - $150,000 More than $150,000 Image & Reputation Low Impact Low Impact Moderate Impact High Impact Extreme Impact Compliance (effect on Operations) Less than 1 hour 1hr 1 day 1 day 1 week 1 week 1 month More than 1 month 10

11 RISK RATING SCALE: LIKELIHOOD X CONSEQUENCE = LEVEL OF RISK Level of Risk Criteria for Management of Risk 1-3 Acceptable 4-5 Monitor 6-9 Management Control Required Urgent Management Attention Unacceptable EVALUATING RISKS The risk evaluation step involves deciding whether the identified risk rating is acceptable, after considering:- The controls already in place; The cost impact of managing the risks or leaving them untreated; Benefits and opportunities presented by the risk; The risks borne by other stakeholders. During this process, the risk rating identified during the analysis step, is compared against all other risks and the known priorities and requirements of the Association. Any risks that have been accorded a rating that is too high, or too low, are adjusted with a record of the adjustment being retained for tracking purposes. The outcome is a list of risks, with agreed priority ratings, recorded in the Risk Register. TREATING RISKS Risk treatment determines what can be done in response to the risks that have been identified, with a risk rating of 6 or higher, to reduce, transfer, or eliminate the risk by implementing new controls or enhancing existing controls. Treatment strategies will aim to achieve one or a combination of the following outcomes:- Risk elimination (avoidance or discontinuance) Risk transfer 11

12 Risk reduction Risk retention The types of actions that may result can involve:- Education & Training Policy &/or Procedural amendments Audits Contingency planning Risk transfer (including insurance) Where a number of treatment options may be available, a Risk Treatment Worksheet may be utilized to record these. Treatment options are then evaluated in terms of feasibility, costs, benefits and Association priorities resulting in the most appropriate treatment action being recommended. The following steps will be utilized to assist in the development of effective risk treatments:- Identification of actions, that will eliminate, reduce and/or transfer the likelihood or consequences of risks identified with a risk rating of 6 or higher Determine the potential benefits and costs of each action, including the possible impact on the Association if the risk occurred, the reduced level of risk if the actions were implemented and the financial impact Select the best action for the Association Specify the trigger points at which the action might be implemented for those that have the form of contingency plans Identify links to related processes or activities currently within or outside of the Association Treatment strategies will be recorded into NSWHPA Risk Management Action plan. Responsibility for implementation of the Action Plan will be assigned by the Board, to the relevant Committee members/s. Implementation will involve integration into existing procedures including budgeting, event management, development of resources, and communication systems. MONITORING AND REVIEW PROCEDURES Regular monitoring and review of risks is an important part of the NSWHPA Risk Management program. It ensures that new risks are; detected; added to the Risk Register; managed and that action plans are implemented and progressed effectively. The NSWHPA monitoring and review strategies include:- Risk Management will be a standard agenda item for Board meetings. o the Risk Register will be reviewed along with any new or updated supporting Summary Risk Reports The member delegated by the Board will monitor day-to-day progression of Risk Management Action plans. A major review will be undertaken by the Board of Management in the committee meeting prior to the AGM meeting each year. 12

13 RISK MANAGEMENT POLICY NSWHPA has formulated and adopted a risk management policy. The risk management policy is an inclusion to this risk-management plan (RMP). RISK MANAGEMENT PROCESS: The RMP details the steps to follow to manage risk. RESPONSIBILITY: The Board is primarily response for the management of risk, however as the need arises specialist advice and assistance may be sought from outside the Board through a committee, a risk management expert that is available within the organisation, such as specialist volunteers and/or selected members or other such experts not necessarily members of NSWHPA. Ultimate responsibility for risk management is assigned to the chairperson of the board of management, but everyone is responsible and accountable for managing risks. This responsibility varies depending on their position within the organisation, their duties and knowledge. Office bearers and those acting in an official capacity should be fully aware of their duties and responsibilities, and operate within the parameters set by duty statements, policies, and operating guidelines, all of which are designed to ensure a clear understanding of the responsibility associated with particular positions, and an understanding of risk and its management. In most instances a risk source will be under the control of a designated staff member or office bearer who is accountable for an activity or function. In some instances, the risk may be shared by several parties (for example, an independent contractor or a neighbour). If this is the case, the relevant parties will be consulted during the riskassessment process. Responsibility for implementing specific control measures for each identified risk is detailed within a risk register. RISK REGISTER NSWHPA has developed a risk management register in order to record identified risks and controls. Members accountable for NSWHPA activities document risk associated with these activities via the risk register. 13

14 The register and supporting documentation will be regularly reviewed and updated by the board of management, to ensure identified risks are managed and that necessary risk treatments are addressed and updated. The register sets out the risk management plan for all identified risk areas and includes control options and progress updates. COMMUNICATION POLICY Effective communication is crucial to the risk management plan. NSWHPA will clearly communicate its risk management plans with stakeholders as required. Clearly explaining what NSWHPA is doing from a risk management perspective and why it is doing it will improve the understanding of members and stakeholders about the benefits of risk management. It will also ensure that that understanding is comprehensive and current. This will strengthen the environment within NSWHPA and encourage it to take a risk management approach to normal activities. Sound two-way communication is critical at all stages of the risk management process and is necessary to gather the best possible information to identify and assess the risk and determine the best treatment. Systems will be developed to ensure good communication. Mechanisms will be formalised to ensure they occur and will involve strategies such as: communicating NSWHPA risk management plan internally via a noticeboard, newsletter or website positioning posters or information sheets promoting safety in and around NSWHPA sponsored events. providing members with information about NSWHPA commitment to safety regularly reporting on the progress of the management of risk at board of management meetings. To facilitate communication, NSWHPA will: support all verbal instruction with written communication, and vice versa maintain a risk register retain supporting documentation regularly review the risk register and supporting documentation Communicate and consult with all parties involved. 14