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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan

City of Victor Harbor

STORMWATER

INFRASTRUCTURE RISKMANAGEMENT PLAN

Version 1

November 2016

vfrancis

Text Box

Attachment A item 14.1.1


Document Control

Stormwater Infrastructure Risk ManagementPlan

Document ID: 140527 nams.plus3 advanced irmp template v3.1Rev No Date Revision Details Author Reviewer Approver1 November

2016Stormwater Asset Management Plan & CapitalWorks Programming

DEIS CEO, DPRS,DCCS, MI,MO, GL-C&M

Council

Very High High Medium LowInherent Risk 3 6 12 6Residual Risk 0 0 4 23

-10

-5

0

5

10

15

20

25

StormwaterInherent / Residual Risks

Inherent Risk Residual Risk

Linear (Inherent Risk) Linear (Residual Risk)

Inherent Risk - The probability of loss arising out of circumstances or existing in an environment, inthe absence of any action to control or modify the circumstances.

Residual Risk - A risk that remains after all efforts have been made to mitigate or eliminate risksassociated with a business process or asset. After a risk assessment, a residual risk may be knownbut not completely controllable, or, it may not be known.


TABLE OF CONTENTS

1. INTRODUCTION .............................................................................................................................................. 11.1 Aim ........................................................................................................................................................ 11.2 Objectives.............................................................................................................................................. 11.3 Advanced Infrastructure Risk Management ......................................................................................... 11.4 Scope..................................................................................................................................................... 31.5 Risk Management Process .................................................................................................................... 3

2. COMMUNICATION AND CONSULTATION ....................................................................................................... 43. ESTABLISHING THE CONTEXT.......................................................................................................................... 4

3.1 Establishing the external context.......................................................................................................... 43.2 Establishing the internal context........................................................................................................... 53.3 Establishing the context of the risk management process ................................................................... 63.4 Develop risk criteria .............................................................................................................................. 6

4. RISK IDENTIFICATION...................................................................................................................................... 74.1 General.................................................................................................................................................. 7

5. RISK ANALYSIS............................................................................................................................................... 145.1 General................................................................................................................................................ 145.2 Likelihood ............................................................................................................................................ 145.3 Consequences ..................................................................................................................................... 145.4 Risk Analysis ........................................................................................................................................ 155.5 Timing of Risk Treatment .................................................................................................................... 155.6 Analysis of Risk .................................................................................................................................... 16

6. RISK EVALUATION ......................................................................................................................................... 166.1 General................................................................................................................................................ 166.2 Risk Evaluation .................................................................................................................................... 16

7. RISK TREATMENT PLANS............................................................................................................................... 237.1 General................................................................................................................................................ 237.2 Manage the Risks ................................................................................................................................ 237.3 Risk Treatment Process ....................................................................................................................... 247.4 Risk Treatments Options ..................................................................................................................... 247.5 Risk Treatment Plans........................................................................................................................... 24

8. MONITORING AND REVIEW.......................................................................................................................... 379. REFERENCES.................................................................................................................................................. 37


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1. INTRODUCTION

1.1 Aim

The purpose of this core infrastructure risk management plan is document the results and recommendationsresulting from periodic identification, assessment and treatment of risks associated with providing services tothe community from infrastructure, using the fundamentals of International Standard ISO 31000:2009 Riskmanagement – Principles and guidelines.

Risk Management is defined in ISO 31000:2009 as: “coordinated activities to direct and control anorganisation with regard to risk”.1

1.2 Objectives

The objectives of the plan are:

to identify risks to the City of Victor that may impact of the delivery of services from infrastructure, to select credible risks for detailed analysis, to analyse and evaluate risks in accordance with ISO 31000:2009, to prioritise risks, to identify risks requiring treatment by management action, to develop risk treatment plans identifying the tasks required to manage the risks, the

officer/authority responsible for each task, the resources required and the due completion date.

1.3 Advanced Infrastructure Risk Management

This advanced infrastructure risk management plan has been designed to be read as a supporting document toa NAMS.PLUS3 Asset Management Plan. It is based on the fundamentals of International Standard ISO31000:2009 Risk Management – Principles and guidelines.

Organisations aiming at being an effective manager of risk should comply with the following principles.

a) Risk management creates and protects value – by contributing to the demonstrable achievement ofobjectives and improvement of performance in, for example, human health and safety, security, legaland regulatory compliance, public acceptance, environmental protection, product/service quality,project management, effectiveness in operations, governance and reputation.

b) Risk management is an integral part of all organisational processes – not a stand-alone activity that isseparate from the main activities and processes of the organisation. Risk management is part of theresponsibilities of management and integral to all organisational processes, including strategicplanning and all project and change management processes.

c) Risk management is part of decision making – by helping decision makers make informed choices,prioritise actions and distinguish between alternate courses of action.

d) Risk management explicitly address uncertainty, the nature of that uncertainty and how it can beaddressed.

e) Risk management is systematic, structured and timely – which contributes to efficiency andconsistent, comparable and reliable results.

f) Risk management is based on the best available information – however, decision makers shouldinform themselves of, and should take into account, any limitations of the data or modelling used orthe possibility of divergence among experts.

1 ISO 31000:2009, p 2.

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g) Risk management is tailored – and aligned with the organisation’s external and internal control andrisk factors.

h) Risk management takes human and cultural factors into account – by recognising the capabilities,perceptions and intentions of external and internal people that can facilitate or hinder achievementof the organisation’s objectives.

i) Risk management is transparent and inclusive – through appropriate and timely involvement ofstakeholders and, in particular, decision makers at all levels of the organisation, so that riskmanagement remains relevant and up-to-date. Involvement also allows stakeholder to be properlyrepresented and to have their views taken into account in determining risk criteria.

j) Risk management is dynamic, iterative and responsive to change – by continually sensing andresponding to change. As external and internal events occur, context and knowledge change,monitoring and review of risks take place, new risks emerge, some change and some disappear.

k) Risk management facilitates continual improvement of the organisation – from development andimplementation of strategies to improve their risk management maturity alongside all other aspectsof the organisation.2

The success of risk management depends on the effectiveness of the management framework providing thefoundations and arrangements that will embed it throughout the organisation at all levels. The frameworkensures that information about risk derived from the risk management process is adequately reported andused as a basis for decision making and accountability at all relevant organisation levels.3 The dependency ofthe management framework components in managing risk is shown in Figure 1.3.

Fig 1.3: Relationship between the components of framework for managing riskSource: Based on ISO 31000; 2009, Fig 2, p 9

2 ISO 3100:2009, Sec 3, pp 7-8.3 ISO 3100: 2009, Sec 4.1, p 8.

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1.4 Scope

This plan considers risks to services delivery from Stormwater infrastructure.

1.5 Risk Management Process

The risk management process used in this project is shown in Figure 1.5 below.

It is an analysis and problem solving technique designed to provide a logical process for the selection oftreatment plans and management actions to protect the community against unacceptable risks.

The process is based on the fundamentals of International Standard ISO 31000:2009.

RISK ASSESSMENT

ESTABLISHING THE CONTEXT

- The external context- The internal context- Define risk criteria

RISK ANAYLSIS

Identify existing controls

Determine DetermineConsequences Likelihood

Determine level of risk

RISK EVALUATION

- Compare against risk criteria- Set priorities

Is riskacceptable?

RISK TREATMENT

- Identify options (cost & residual risk)- Assess options (risk reduction & cost)- Prepare and implement treatment plans- Communicate residual risks

RISK IDENTIFICATION

- What can happen?- When and why?- How and why?

Yes

No

Fig 1.5: Risk Management Process – DetailSource: Based on ISO 31000; 2009, Fig 3, p 14

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2. COMMUNICATION AND CONSULTATION

Risk communication and consultation is “continual and iterative processes that an organisation conducts toprovide, share or obtain information and to engage in dialogue with stakeholders regarding the managementof risk”.4

Appropriate communication and consultation seeks to:

Improve people’s understanding of risks and the risk management processes, Ensure that the varied views of stakeholders are considered, and Ensure that all participants are aware of their roles and responsibilities. 5

The development of this infrastructure risk management plan was undertaken using a consultative teamapproach to:

Identify stakeholders and specialist advisors who need to be involved in the risk management process, Discuss and take into account the views of stakeholder and specialist advisors, and Communicate the results of the risk management process to ensure that all stakeholders are aware of

and understand their and roles and responsibilities in risk treatment plans.

Members of the team responsible for preparation of this risk management plan are:

Director of Environment & Infrastructure Services Senior Management Team Manager Infrastructure Infrastructure Officer Manager Operations Group Leader – Construction & Maintenance

3. ESTABLISHING THE CONTEXT

In establishing the context, “the organisation articulates its objectives, defines the external and internalparameters to be taken into account when managing risk, and sets the scope and risk criteria for the remainingprogress”.6

The context is established in three stages, external, internal and risk criteria.

3.1 Establishing the external context

The external context is the external environment in which the organisation seeks to achieve its objectives.Understanding the external context is important to ensure that the objectives and concerns of externalstakeholders are considered when developing risk criteria. This external context can include but is not limitedto:

The social and cultural, political, legal, regulatory, financial, technological, economic, natural andcompetitive environment in which the organisation operates,

Key drivers and trends impacting on the objectives of the organisation, and Relationships with, perceptions and values of external stakeholders.7

This is to determine the crucial elements which might support or impair its ability to manage the risksassociated with its operation.

4 ISO 31000:2009, Sec 2.12, p 3.5 HB 436:2004, Sec 3.1, p 20.6 ISO 31000:2009, Sec 5.3.1, p 15.7 ISO 31000:2009, Sec 5.5.2, p 15.

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Key items of the external environment within which City of Victor Harbor operates are:

Legislative change Climate adaptation Provision of services (service levels) Population growth Demographics Expectation Funding & grant arrangements Financial analysis & sustainability

3.2 Establishing the internal context

The internal context is the internal environment in which the organisation seeks to achieve its objectives. Itincludes anything within the organisation that can influence the way in which an organisation will managerisks. It should be established because:

risk management takes place in the context of the organisation’s objectives, objectives and criteria of a particular project, process and activity should be considered in the light of

objectives of the organisation as a whole, and some organisations fail to recognise opportunities to achieve their strategic, project or business

objectives, and this affects ongoing organisational commitments, credibility trust and value.8

The purpose of this stage is to align the risk management process with the organisation’s culture, processes,structure and strategy. It is essential that the organisation understands its internal context which can include,but is not limited to:

governance, organisational structure, roles and accountabilities, policies, objectives, and the strategies that are in place to achieve them, capabilities, understood in terms of resources and knowledge (eg capital, time, people, processes,

systems and technologies), the relationships with and perceptions and values of internal stakeholders, the organisation’s culture, information systems, information flows and decisions making processes (both formal and informal), standards, guidelines and models adopted by the organisation, and form and extent of contractual relationships.9

City of Victor Harbor operates many management practices and procedures to identify and manage risksassociated with providing services from infrastructure assets. These include:

operating a reactive maintenance service for all assets and services, operating a planned maintenance system for key assets, monitoring condition and remaining service life of assets nearing the end of their service life, renewing and upgrading assets to maintain service delivery, closing and disposing of assets not providing the required service level, and acquiring or constructing new assets to provide new and improved services.

Service Levels are reviewed from to time to achieve greater cost effectiveness and efficiency in its servicedelivery to the community.

8 ISO 3100:2009, Sec 5.3.3, pp 15.9 ISO 3100:2009, Sec 5.3.3, pp 15-16.

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3.3 Establishing the context of the risk management process

This stage of context development is the risk management context. It includes setting the objectives,strategies, scope and parameters of the services to which the risk management process is being applied. Theprocess should be undertaken with the need to balance costs, benefits and opportunities. The resourcesrequired and records to be kept should also be required.

The context of the risk management process will vary according to the needs of an organisation. It can involve,but is not limited to:

defining the goals and objectives of the risk management activities, defining responsibilities for and within the risk management process, defining the scope, as well as the depth and breadth of the risk management activities to be carried

out, including specific inclusions and exclusions, defining the activity, process, function, project, product, service or asset in terms of time and location, defining the relationships between a particular project, process or activity and other projects,

processes or activities of the organisation, defining the risk assessment methodologies, defining the way performance and effectiveness is evaluated in the management of risk, identifying and specifying the decisions that have to be made, and identifying, scoping or framing studies needed, their extent and objectives, and the resources

required for such studies.10

The organisation has assigned responsibilities for managing risks associated with assets and service delivery tothe following departments.

Regulatory and Planning Services Environment and Infrastructure Services Corporate and Community Services

3.4 Develop risk criteria

The purpose of this stage is to develop the criteria against which risk is to be evaluated. The criteria shouldreflect the organisation's values, objectives and resources and the interests of stakeholders. This may dependon operational, technical, financial, legal, social, humanitarian, or other criteria.

Some criteria can be imposed by, or derived from, legal and regulatory requirements and other requirementsto which the organisation subscribes. Risk criteria should be consistent with the organisation's riskmanagement policy, be defined at the beginning of any risk management process and be continually reviewed.

When defining risk criteria, factors to be considered should include the following:

the nature and types of causes and consequences that can occur and how they will be measured, how likelihood will be defined, the timeframe(s) of the likelihood and/or consequence(s), how the level of risk is to be determined, the views of stakeholders, the level at which risk becomes acceptable or tolerable, and whether combinations of multiple risks should be taken into account and, if so, how and which combinations should be considered.11

The risk evaluation criteria used in this risk management plan are shown in Table 3.4. This criteria is used toidentify risk that are not acceptable to the organisation.

Table 3.4: Risk Evaluation Criteria

10 ISO 31000:2009, Sec 5.3.4, p 16.11 ISO 31000:2009, Sec 5.3.5, p 17.

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Criterion Risk Evaluation (Not Acceptable) Criteria

Operational Risks that have the potential to reduce services for a period of time unacceptableto the community and/or adversely affect the organisation’s public image.

Technical Risks that cannot be treated by the organisation’s existing and/or readily availabletechnical resources.

Financial Risks that cannot be treated within the organisation’s normal maintenance budgetsor by reallocation of an annual capital works program.

Legal Risks that have the potential to generate unacceptable exposure to litigation.Social Risks that have the potential to:

- cause personal injury or death and/or- cause significant social/political disruption in the community.

Environmental Risks that have the potential to cause environmental harm.

The evaluation criteria are to provide guidance to evaluate whether the risks are acceptable to theorganisation and its stakeholders in providing services to the community. Risks that meet the evaluationcriteria above are deemed to be unacceptable and risk management plans are required to be developed anddocumented in this Infrastructure Risk Management Plan.

4. RISK IDENTIFICATION

4.1 General

Risk identification seeks to identify the risks to be managed. A well-structured systematic process is crucial,because a potential risk not identified at this stage is excluded from further analysis. All risks should beidentified, whether or not they are under the control of the organisation.

The risks are identified in three stages:

What can happen? The aim is to generate a comprehensive list of events which might affect eachelement of the organisation’s service delivery.

How and why it can happen? It is necessary to consider possible causes and scenarios. There aremany ways and event can be initiated. It is important that no significant causes are omitted.

Are risks credible? An assessment of credibility of all risk is undertaken to ensure that credible risksreceive proper and due consideration.

The assets at risk, what can happen, when, possible cause(s), existing controls and assessment of credibility ofthe risk by the risk management team are shown in Table 4.1.

Credible risks are subjected to risk analysis in Section 5.

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Table 4.1: Risk Identification

RISK IDENTIFICATIONRiskNo.

Asset providing theService

What can happen? When canit occur?

Possible cause Existing controls Is riskcredible?

1 Stormwater - Side EntryPits Blocked

Overflow to roads and properties Anytimein thefuture

Side Entry Pitscontaining largevolumes of debris

Regular side entry pit visual inspections Yes

2 Climate Change Rising sea levels & changes toweather patterns will impact on thecapacity of the existing stormwatersystem & an increase in flood proneareas from more frequent extremetidal & storm events

Within 20years

Sea level rise, (ClimateChange)

Refer to AWE Victor Harbor CoastalManagement Study 2013

Yes

3 Major Flooding Property & road flooding at specificlocations causing major damage &traffic hazards.

Anytimein thefuture

Stormwater systemcapacity, storm eventincreases are likely tooccur more frequently

Upgrade known problem areas withallocated funds

Yes

4 Jagger Dam (HicksReserve)

Embankment failure causingsignificant downstream propertydamage

Anytimenow

Weak / poor structuralembankment, dam notengineered

Tender for works called, commencedDecember 2013

Yes

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5 Water runoff from ruralvacant land - TabernacleRd

Flooding to residential areas, excesswater run-off from vacant rural land

Within 5years

Stormwater runoff fromvacant rural land

Earth bund placed to divert runoff Yes

6 Water runoff from ruralvacant land - WishartCourt

Flooding to residential areas, excesswater run-off from vacant rural land

Within 5years


No protection Yes

7 Waterport Rd - WaterRunning Over Road - DPTI

Stormwater crossing DTPI recentlyconstructed roundabout RE.Waterport Rd

Within 5years


Culverts placed, capacity issue Yes

8 Cakebread Road - WaterRunning over drivewaysthrough Properties

Flooding of properties Within 5years

Stormwater runoff fromroad network

Inadequate stormwater infrastructure Yes

9 Field Ave/Brand/Pine -Stormwater Run Off fromHigher Developed Areas -Capacity

Potential flooding of properties Anytimein thefuture

Stormwater runoff fromdeveloped properties &aged care facility

Inadequate stormwater infrastructure Yes

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10 Lamont Court - Propertieslower than HindmarshRiver high water levels

Potential flooding of properties Anytimenow

Hindmarsh River heightcausing Lamont Courtflooding back throughsystem

Current system is inadequate Yes

11 Bacchus Wetlands Potential Flooding of Roads Within 20years

Lack of Capacity Wetlands provided, reviewing holdingcapacity

Yes

12 Mill Road - VacantPaddock Water Run Off

Rural land water runoff Within 1year

Water runoff fromvacant rural land

Limited due to rural land owned byothers, placed drains

Yes

13 Harborough Area -General StormwaterOutlets

Overflow to roads Anytimein thefuture

Single Side Entry Pits Change single to double side entry pits Yes

14 Inman River, CatchmentFlows

Embankment collapse Within 20years

Water volume andvelocity

Vegetation Yes

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15 Side Entry Pits CapacityIssues - Single PitsUpgrade to Double SEP's

Overflow to roads Within 1year

Single Side Entry Pits Change single to double side entry pits Yes

16 Bridges and Crossovers Undermining of Bridge Abutments /Columns

Within 5years

Volume of Water Flow Remove Debris and Blockages, detailedinspections every five yrs.

Yes

17 Ridgeway and Hope St -Electric Pumps

Pumps failing due to no power Anytimein thefuture

Mains power failure Currently relying on mains power Yes

18 Yilki Common Reserve Water over road and possible floodingof properties

Anytimein thefuture

Capacity concerns, lowpoint, no infrastructure

Pumping water when reserve full Yes

19 Swains Crossing, Stockand Sawpit Rds.

Water Over Roads Within 2-3 years

Roads are known asfords

Permanent water depth markers placedon road shoulders. Water over roadsigns placed out when water crosses

Yes

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20 Kerb & Channel - NonUrban Areas

Large volumes of water may enterproperties

Anytimein thefuture

No kerb & channelplaced to control waterentry & directing waterflows

Budget bids placed to council eachfinancial year to place k&C, about 14kmsof urban roads don’t have k&c

Yes

21 Glen Rd - Overflow openchannel

Potential flooding of land Within 5years

Stormwater volume Regular maintenance to ensure clean &with no/or limited vegetation

No

22 Nettle Hill Rd - Drains -Washed - VacantPaddocks

Open surface drains, scouring Within 5years

Stormwater volume Widen drains, ensure that grasses/vegetation does exist, place cementtreated quarry rubble when repairing

No

23 San Remo Court - Part ofBacchus WetlandsConnection Works

Potential Flooding Within 20years

Lack of Capacity Wetlands provided, reviewing holdingcapacity

Yes

24 Acraman/Hinkler St -Stormwater Upgrade

Potential Flooding Within 10years

Lack of Capacity Placed in Asset Management Plan /CWP. Identified in KBR 2005, StormwaterUrban Report

Yes

25 Yandra Tce/BrandwoodReserve StormwaterDrains

Flooding Within 10years

Lack of Capacity, veryold infrastructure,inadequate

Redesign completed,implementation/construction upgrade

Yes

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26 Beach Outfall Outlets -Maintenance

Blockages Anytimein thefuture

Debris & beach sandbuilt up

Programmed works, cyclic maintenanceschedule

Yes

27 Encounter Lakes - WaterQuality

Cloudy water quality Within 20years

Stormwater runoff Monitor water quality, water testing byHealth Officer

Yes

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5. RISK ANALYSIS

5.1 General

Risk is analysed by combining estimates of likelihood and consequences in the context of existing controlmeasures. The objective of a risk analysis is to separate the minor acceptable risks from the major risks and toprovide data to assist in assessment and treatment of risk.

The level of risk is determined by considering two aspects against existing controls:

how likely it is that things may happen (likelihood, frequency of probability), and the possible consequences (impact or magnitude of the effect) if they do occur.

The risk analysis process is to:

identify the existing management controls, technical systems and procedures to control risk, evaluate the likelihood of events occurring and their consequences in the context of these existing

controls, and combine the evaluation of likelihood and consequences to produce a level of risk.

5.2 Likelihood

Likelihood is a qualitative description of probability of an event occurring. The process of determininglikelihood involves combining information about estimated or calculated probability, history or experience.Where possible it is based on past records, relevant experience, industry practice and experience, publishedliterature or expert judgement. The qualitative likelihood descriptors are shown in Table 5.2.

Table 5.2: Likelihood Descriptors

Likelihood Descriptor Probability of occurrenceRare May occur only in exceptional circumstances More than 20 years

Unlikely Could occur at some time Within 10-20 yearsPossible Might occur at some time Within 3-5 years

Likely Will probably occur in most circumstances Within 2 yearsAlmost certain Expected to occur in most circumstances Within 1 year

5.3 Consequences

Consequences are a qualitative description of the effect of the event. The process of determiningconsequences involved combining information about estimated or calculated effects, history and experience.The qualitative likelihood descriptors are shown in Table 5.3.

The worst case consequence from the 5 consequence criteria in Table 5.3 is used for risk analysis.

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Table 5.3: Consequence Descriptors

Consequence Injury ServiceInterruption Environment Finance Reputation

Insignificant Nil < 4 hrs Nil < $20k NilMinor First Aid Up to 1 day Minor short

term$20k - $100k Minor media

Moderate Medicaltreatment

1 day – 1 week Wide short term $100k - $500k Moderatemedia

Major Disability 1 week – 1month

Wide long term $500k - $1M High media

Catastrophic Fatality More than 1month

Irreversible longterm

> $1M Censure/Inquiry

5.4 Risk Analysis

The risk assessment process compares the likelihood of a risk event occurring against the consequences of theevent occurring. In the risk assessment matrix table below, a risk event with a likelihood of ‘Possible’ and aconsequence of ‘Major’ has a level of risk of ‘High’. This level of risk is used to develop a typical risk treatmentin Section 6.1.

Table 5.4: Risk Assessment Matrix

Risk Rating

Likelihood ConsequencesInsignificant Minor Moderate Major Catastrophic

Rare L L M M H

Unlikely L L M M H

Possible L M H H H

Likely M M H H VH

Almost Certain M H H VH VHRef: HB 436:2004, Risk Management Guidelines, Table. 6.6 p 55.

5.5 Timing of Risk Treatment

The level of risk is used to determine risk treatments. Risk treatments can range from immediate correctiveaction (such as stop work, make safe or prevent use of the asset) for ‘Very High’ risks to manage by routineprocedures for ‘Low’ risks.

Using the example from Section 5.4, an event with a ‘High Risk’ rating will require ‘Prioritised action’.

Table 5.4: Timing of Risk Management Required

Level of Risk Timing of Action Required

VH Very High Risk Immediate corrective action

H High Risk Prioritised action required

M Medium Risk Planned action required

L Low Risk Manage by routine procedures

Immediate corrective action may include combinations of stopping work, making the area safe, preventing useof the asset and/or scheduling replacement as soon as possible. Prioritised action may include making theareas safe and implementing a short term work program to reduce the risk through improved maintenance orreplacement of the asset. Planned action may include shifting the asset from a reactive maintenance to a

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planned maintenance management regime and/or scheduling component/asset replacement in the current ornext budget. Manage by routine procedures involves managing the risk through existing operations andmaintenance procedures.

5.6 Analysis of Risk

The team conducted an analysis of credible risks identified in Table 4.1 using the method described above todetermine a level of risk for each credible risk.

The credible risks and levels of risk are shown in Table 6.2.

6. RISK EVALUATION

6.1 General

Risk evaluation involves comparing the level of risk found during the analysis process with previouslyestablished risk evaluation criteria and deciding whether the risks can be accepted.

Options should be evaluated on the basis of the extent of risk reduction and the extent of benefits oropportunities created, taking into account the criteria developed in Section 3.4.

In general, the adverse impact of risks should be made as low as reasonably practicable irrespective of anyabsolute criteria. A combination of options may give the optimum risk reduction outcome.

If the risks fall into the acceptable or low categories, they may be accepted with minimal further treatment.Acceptable or low risks should be monitored and periodically reviewed to ensure they remain acceptable.

If the risks do not fall into the acceptable or low category, they should be managed using one of the optionsbelow.

The output of risk evaluation is a prioritised list of risks for further action.

6.2 Risk Evaluation

Table 6.2 shows the evaluation of risks using the criteria determined in Section 4 and identified risks that areconsidered as not acceptable to meet the organisation’s objectives and for which, risk treatment plans arerequired. Risk treatment plans are developed in Section 7.

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Table 6.2 Risk Analysis and Evaluation

RISK ANALYSISLikelihood Conseq.

InjuryConseq. Service

Int.Conseq.

EnvironmentConseq.Financial

Conseq.Reputation

OverallConsequences

Riskrating

Action required

Possible Minor Insignificant Insignificant Insignificant Minor Minor Medium Planned actionrequired

Likely Major Major Catastrophic Catastrophic Major Catastrophic Very High Immediate correctiveaction

Possible Insignificant Minor Minor Minor Minor Minor Medium Planned actionrequired

Likely Catastrophic Catastrophic Catastrophic Catastrophic Catastrophic Catastrophic Very High Immediate correctiveaction

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Possible Insignificant Insignificant Minor Minor Minor Minor Medium Planned actionrequired

Likely Moderate Minor Minor Minor Moderate Moderate High Prioritised actionrequired

Likely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Medium Planned actionrequired

Likely Insignificant Moderate Minor Minor Moderate Moderate High Prioritised actionrequired

Almostcertain

Insignificant Minor Insignificant Minor Moderate Moderate High Prioritised actionrequired

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Almostcertain

Insignificant Minor Insignificant Minor Moderate Moderate High Prioritised actionrequired


Possible Insignificant Insignificant Insignificant Insignificant Minor Minor Medium Planned actionrequired

Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures

Almostcertain

Minor Major Major Moderate Major Major Very High Immediate correctiveaction

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Likely Major Moderate Minor Major Moderate Major High Prioritised actionrequired

Likely Insignificant Minor Insignificant Minor Minor Minor Medium Planned actionrequired

Likely Insignificant Minor Insignificant Insignificant Minor Minor Medium Planned actionrequired

Possible Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures

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Possible Insignificant Minor Minor Insignificant Minor Minor Medium Planned actionrequired


Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures


Possible Insignificant Moderate Minor Moderate Moderate Moderate High Prioritised actionrequired

Possible Insignificant Minor Minor Minor Minor Minor Medium Planned actionrequired

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Possible Minor Insignificant Insignificant Insignificant Minor Minor Medium Planned actionrequired


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7. RISK TREATMENT PLANS

7.1 General

The treatment of risk involves identifying the range of options for treating risk, evaluating those options,preparing risk treatment plans and implementing those plans.

This includes reviewing existing guides for treating that particular risk, such as Australian and State legislationand regulations, Australian Standards and Best Practise Guides. Developing risk treatment options starts withunderstanding how risks arise, understanding the immediate causes and the underlying factors that influencewhether the proposed treatment will be effective.

One treatment option is to remove the risk completely by discontinuing the provision of the service. Otheroptions include risk reduction by reducing the likelihood and/or the consequences of the risk.

7.2 Manage the Risks

Risks need to be managed appropriately to the significance of the risk and importance of the affecteditem/asset to the organisation’s service delivery. As a general guide:

low levels of risk can be accepted and additional action may not be needed; these risks should bemonitored,

major or significant levels of risk should be managed with actions to reduce or eliminate the risk, high levels of risk require close management and the preparation of a formal plan to manage the

risks.

Options for managing risk are shown below. The optimum solution may involve a combination of options.

Avoid the risk by deciding not to proceed with the activity that would incur the risk, or choose analternative course of action that achieves the same outcome,

Reduce the level of risk by reducing the likelihood of occurrence or the consequences, or both; the likelihood may be reduced through management controls, organisational or other

arrangements which reduce the frequency of, or opportunity for errors, such as alternativeprocedures, quality assurance, testing, training, supervision, review, documented policy andprocedures, research and development.

the consequences may be reduced by ensuring that management or other controls, or physicalbarriers, are in place to minimise any adverse consequences, such as contingency planning,contract conditions or other arrangements.

Transfer the risk by shifting the responsibility to another party (such as an insurer), who ultimatelybears the consequences if the event occurs. Risks should be allocated to the party which can exercisethe most effective control over those risks.

Accept and retain the risks within the organisation where they cannot be avoided, reduced orreduced or transferred, or where the cost to avoid or transfer the risk is not justified, usually becausethe risk is acceptable or low. Risks can be retained by default, ie. Where there is a failure to identifyand/or appropriately transfer or otherwise manage risks

The cost of managing risks needs to be commensurate with the benefits obtained, the significance of the eventand the risks involved.

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7.3 Risk Treatment Process

The risk treatment process comprises 5 steps.

Step 1. Review causes and controls

The risk identification process documented in Section 5 included identifying possible causes and documentingexisting controls.

Step 2. Develop treatment options

Treatment options include those that eliminate risk, reduce the likelihood or the risk event occurring, reducingthe consequences should the risk event occur, sharing of the risk with others and accepting the risk.

Step 3. Assess risk treatment options against costs and residual risk

The method of assessment of risk treatment options can range from an assessment by a local group ofstakeholders and practitioners experienced in operation and management of the assets/service to detailed riskcost and risk reduction cost/benefit analysis.

Step 4. Select optimum risk treatment

Step 5. Develop risk treatment plans

7.4 Risk Treatments Options

The risk treatment options identified for non-acceptable risks shown in Table 6.2 are detailed in Table 7.4.

7.5 Risk Treatment Plans

From the optimum risk treatment options identified in Table 7.4, risk treatment plans were developed.

The risk treatment plans identify for each non-acceptable risk:-

1. Proposed action2. Responsibility3. Resource requirement/budget4. Timing5. Reporting and monitoring required

The risk treatment plan is shown in Table 7.5.

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Table 7.4: Risk Treatment

RISK TREATMENT OPTIONS OPTIONS RESIDUAL RISKNo. Treatment option(s) Cost

$000Likelihood

(from Col H)Consequences

(from Col N)Residual

risk

A Regular & planned maintenance schedule developed $20 Possible Minor MediumB Planned Street Sweeper Regime $110 Unlikely Insignificant Low

CDA Reference AWE Coastal Management Study 2013 - Resolution No. OC 13/0514, 25 November 2013 $1,700 Likely Major HighB Resilient Hills and Coasts-Climate Change Adaptation Plan $30 Likely Major High

C FY2017-18 CVH Adaptation Plan - Develop $55 Likely Major HighDA Identify problem areas 'Hot Spots' create Action Plan $20 Possible Minor Medium

B Urban Stormwater Master Plan, KBR (2005) - Actioned of a number of years. $30 Possible Minor Medium

C

DA Redesign Embankment undertaken by KBR, designs & technical specification completed. $40B Ellers Contractors undertook Dam works and per design & specification. Project completed $380 Rare Minor Low

- 26 -


CDA Construct temporary earth bund to protect rear of homes $1 Possible Minor Medium

B Adelaide Development Company (ADC) meeting to discuss joint options for their vacant rural land $1 Possible Minor Medium

C FY2017-18 council budget bid for stormwater design works $65 Possible Minor MediumD Implement design works for construction FY2018-19 $880 Unlikely Insignificant LowA Underground drains $10 Unlikely Insignificant LowB Design/Construction $50 Unlikely Insignificant LowCDA Advise DPTI Re. Design $0 Possible Insignificant Low

BCDA Design Upgrade $60 Possible Moderate HighB Construction $500 Unlikely Insignificant Low

C Prioritised in Councils AM Plan / CWPDA FY2016-17 Design $20 Unlikely Insignificant LowB FY2017-18 Construction $585 Unlikely Insignificant Low

C Prioritised in Councils AM Plan / CWP

- 27 -


DA FY2015-16 Design $30 Unlikely Insignificant LowB FY2016-17 Construction $300 Unlikely Insignificant Low

C Prioritised in Councils AM Plan / CWPDA Design CompletedB FY2016-17 Review Design $20 Unlikely Insignificant Low

C FY2019-20 Construction $1,560 Unlikely Insignificant LowDA Drains placed in vacant land by owner, purpose to divert water run-off away from home $2 Possible Minor Medium

BCDABCDA Engage Coffey - geotechnical specialists $60 Likely Major High

B Coffey Design Treatment $40 Rare Minor Low

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C FY2016-17 Construction $100 Rare Minor Low

DABCDA Inspection of Bridges every 4 yrs. planned asset revaluations & condition assessments $40 Possible Moderate HighB Action Cyclic Inspections / General Maintenance $20 Unlikely Minor Low

C

DA Investigate Solar backup system $40 Possible Minor Medium

B

CDA Design, explore existing network $35 Likely Minor Medium

B FY2021-22 Construction $350 Unlikely Minor Low

CDA

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BCDA Council budgets bids placed forward each FY that incorporates urban road & stormwater network

improvements$400 Possible Minor Medium

B

CDABCDABCDA Design CompletedB FY2016-17 Review Design $20 Unlikely Insignificant Low

C FY2019-20 Construction $1,560 Unlikely Insignificant LowDA FY2015-16 Design Completed $40B FY2018-19 Construction $1,300 Unlikely Minor Low

C

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DA FY2014-15 Design Completed $40 Possible Minor MediumB FY2016-17 Construction - Stage 1 of 2 $335 Unlikely Minor Low

C FY2017-18 Construction - Stage 2 of 2 $600 Unlikely Minor Low

DA Cyclic Programmed Maintenance Works $77 Unlikely Insignificant Low

B Watch & listen for thunderstorm, rainy weather warnings

CDA Water quality monitoring by CVH Health Officer $0 Unlikely Insignificant Low

B Refer to Encounter Lakes Management Plan, advice on water quality monitoring cyclic events & locations $0 Unlikely Insignificant Low

CD

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Table 7.5: Risk Treatment Plan

RISK TREATMENT PLANTreatment Plan[best option(s)]

ResidualRisk

Actions Responsibility Resources Budget$000

Date due

Establish an agreedregular & planned cyclicmaintenance schedule,particularly before winterbreaks.

Low 1 Staff check side entry pits Man Oper Staff $20 cyclic2 Planned street sweeping program Man Oper Contractor $110 cyclic

34

Council to start allocatingfunds in a RESERVEaccount for this ongoingproject to protect the cityof victor harbor.

Medium 1 AWE Coastal Management Study -Resolution No. OC 13/0514, dated 25November 2013

Man Infras Staff $0 Nov-13

2 Resilient Hills and Coasts-ClimateChange Adaptation Plan; CouncilEndorsed - Resolution No.OC5442016, dated 26 Sept 2016

Man E&R Internal Staff $0 Sep-16

3 FY2017-18 Seek council funding,develop local adaptation plan

Council to approvebudget

Staff $55 Jun-18

4Require additionalfunding to address allconcerns, isolated shortterm road flooding maybe acceptable

Medium 1 Place out appropriate road signage,place depth markers

Man Infras Staff $20 on-going

2 KBR 2005, Urban Stormwater Report.Action over a numbers of years.

Man Infras Staff/Contractors Annual Budget,Program Works

3 Review KBR 2005, Stormwater UrbanReport

Man Infras KBR $155 FY17-18

4Works completed in Low 1 KBR staff to oversee works KBR Outsource $17 Feb-13

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February 2014 2

34

Considered in AssetManagement Plan, design& implementation - kerb& channel andunderground stormwatersystem

Low 1 FY2017-18 council budget bid forstormwater design works


Staff $65 Jun-18

2 FY2018-19 Implement design worksfor construction


Internal Staff $880 Jun-19

34

FY2016-17 UndertakeWorks

Low 1 FY2016-17 Undertake works, adjustbudget to accommodate

Man Infras Staff $60 Jun-17

234

Advised DPTI September2016, if rectified low risk

Low 1 FY2016-17 DPTI Undertake works asadvised

DPTI DPTI 0 Jun-17

234

Prioritised in CouncilsStormwater AM Plan /CWP

Low 1 FY2017-18 Design Man Infras Staff $60 Jun-182 FY2019-20 Construction Council to approve

budgetStaff $600 Jun-20

34

Prioritised in Councils Low 1 FY2016-17 - Design DEIS Staff $20 Jun-17

- 33 -


Stormwater AM Plan /CWP

2 FY2017-18 Construction Council to approvebudget

$585 Jun-18

34


Low 1 FY2015-16 Design DEIS Staff $30 Jun-162 FY2016-17 Construction Council to approve

budgetStaff / Contractor $300 Jun-17

34


Low 1 FY2016-17 Design Review Man Infras $20 Jun-172 FY2019-20 Construction Council to approve

budgetStaff $1,560 Jun-20

34

Monitor paddock draineffectiveness

Medium 1 FY2016-17 Maintenance budget,place concrete diversion

Man Oper Staff $4 Jun-17

234

Low 1234

Report to November 2016Council meeting for

Low 1 FY2016-17 Geotechnical Findings Man Infras Coffey $60 Nov-16

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endorsement, if approvedRisk accessed as Low

2 FY2016-17 Treatment Design Council to approvebudget

Coffey $40 Mar-17


Staff $100 Jun-17

4Low 1

234

Depot Staff - CyclicInspections - March, Septeach year

Low 1 Purchase Assetic Works MaintenanceModule

$40 Jul-17

2 Set up works tickets for cyclicinspection to occur each year


Staff $2 Nov-16

3 Bridges asset assessment every 4 yrs.- structural & condition

Man Infas Assetic $45 4yrs.

4Investigate options withsolar back up

Medium 1 Investigate seek options with costs Man Oper Man Oper $40 Feb-17

2 FY2017-18 Place budget bid forwardto council


Man Infras $40 Jul-17

34


Low 1 FY2019-20 Design Council to approvebudget

Man Infras $35 Jun-20

- 35 -



Man Infras $350 Jun-21

34

Low 1234


Low 1 Each financial year - Design Council to approvebudget

Budget Bid Officer >$40 June

2 Each financial year - Construction Council to approvebudget

Budget Bid Officer >$400 June

34

Low 1234

Low 1234


Low 1 FY2016-17 Design Review Man Infras $20 Jun-172 FY2019-20 Construction Council to approve

budgetStaff $1,560 Jun-20

3

- 36 -


4Prioritised in CouncilsStormwater AM Plan /CWP

Low 1 FY2015-16 Design Completed Man Infras2 FY2018-19 Construction Council to approve

budgetOutsource $1,300 Jun-19

34


Low 1 FY2015-16 Design Completed Man Infras Staff $40 Jun-152 FY2016-17 Construction - Stage 1 of 2 Council to approve

budgetStaff $335 Jun-17

3 FY2017-18 Construction - Stage 2 of 2 Council to approvebudget

Staff $600 Jun-18

4Cyclic programmedmaintenance works byfield staff

Low 1 FY2016-17 - Maintenance UrbanStormwater Budget


Staff $77 Jun-17

2

34

Water quality monitoringas per Encounter LakesManagement Plan

Low 1 Annual water quality monitoring asper Encounter Lakes ManagementPlan


Staff $20 AnnualOccurrence

2

34

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8. MONITORING AND REVIEW

Monitoring and review is an essential and integral step in the process of managing risk. It is necessary tomonitor risks, the effectiveness of any plans, strategies and management systems that have been establishedto control implementation of risk management actions.

The plan will be monitored and reviewed as follows.

Table 8: Monitoring and Review Program

Activity Review ProcessReview of new risks and changes toexisting risks

Review by team with stakeholders and report to council

Review of Risk Management Plan 3 yearly review and re-write by team and report to councilPerformance review of Risk TreatmentPlan

Action plan tasks incorporated in council staff performancecriteria with 6 monthly performance review.Action plan tasks for other organisations reviewed at annualteam review meeting

9. REFERENCES

ISO 31000:2009, Risk management – Principles and guidelines, Standards Australia, Sydney.

HB 436:2004, Risk Management Guidelines, Companion to AS/NZS 4360:2004, Standards Australia, Sydney.

IPWEA, 2011, International Infrastructure Management Manual, Institute of Public Works EngineeringAustralasia, Sydney, www.ipwea.org/IIMM

Annual Business Plan & Budget

Asset Management Plan - Stormwater

Community Plan 2022

Victor Harbor AWE Coastal Management Plan 2013

Urban Stormwater Master Plan, KBR 2005

infrastructure risk management plan - south … · 1.3 advanced infrastructure risk management this...

Documents