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Risk Management Plan Alcohol Industry - PDF


Risk Management Plan Alcohol Industry document sample

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									Risk Management Plan Information Sheet

Risk assessment is extremely important for all events large and small. This importance is
demonstrated by the stance that insurance companies take in regard to risk
management, with many loading premiums or refusing cover where a risk management
plan has not been developed. Insurance is a contract covering risk and having a Risk
Management Plan can assist to lower premiums or secure cover.

Risk management is the process of anticipating, preventing or minimising potential costs,
losses or problems for an event. As defined by The Australian Standards;

     “Risk Management is the term applied to a logical and systematic method of
     establishing the context, identifying, analysing, evaluating, treating, monitoring
     and communicating risks associated with any activity, function or process in a
     way that will enable organisations to minimise losses and maximise
     opportunities. Risk Management is as much about identifying opportunities as
     avoiding or mitigating losses.”

Risk assessment and management involves the following steps;
     Identifying potential risks;
     Assessing each potential risk;
     Treating each potential risk; and
     Ongoing monitoring and review.

Identifying Potential Risks
All events are different, but some common factors to be considered in risk management
     Crowd behaviour;
     Security and crowd control;
     Noise levels;
     Alcohol and associated management;
     Potential hazards;
     Fire risks; and
     Weather.

Some of the knowledge gained through event experience is often the ability to identify
risks. Suppliers and subcontractors to events are generally people experienced in
identifying risks.

Examples of potential risks include:
    Management failure, incompetence;
    Resignations, absenteeism;
    Difficulty with sponsors, suppliers, stall holders or participants;
    The failure of VIP’s or talent to attend the event;
    Loss of revenue sources;
    Theft, loss of assets (logo, name, data);

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      Costs exceeding forecasts;
      Legal action;
      Accidents;
      Alcohol;
      Health problems (food poisoning, chemicals);
      Crime, terrorism;
      Social disturbances/crowd control [riots, fights];
      Unanticipated emergencies;
      Exceeding noise levels;
      Power failure or electrical/plumbing problems;
      Negative impacts on the environment or community;
      Natural hazards (rain, strong wind, heat); or
      Access to DEC or Water Corporation managed land.

All people involved in the development of the event should be involved in the risk
identification process through a brainstorming session to ensure that all risks are
identified. Past experiences of both the event in question, other events and throughout
the industry should also be analysed to assist with identifying risks and drawing on past
experience to identify and manage all risks.

Assessing Potential Risks
It is important to document the risks identified and to assess or map the likelihood of any
risk. There are many different methods that can be used for risk assessment mapping,
and at the end of this section is an example of a commonly used mapping tool.

Treating Potential Risks
All risk assessments should be contained in a table that states the event, the potential
risks, and the likelihood of the risks occurring, the consequences of the risks occurring,
the level of risk and the controls that have been implemented to manage the risks: a risk
management plan.

A risk management plan is essential for all major events, outdoor events and events in
the Shire’s facilities where liquor is being consumed. A template similar to the one that
follows at the end of this section should be used when assessing and developing a
management plan for identified risks.

Ongoing Monitoring and Review
Following the completion of a risk management plan, the development of an action plan
assists in delegating the responsibilities associated with risk management and defines a
timeframe along which tasks are undertaken in the management of each risk.

Prioritise risks to determine which ones have to be dealt with, the probability of
occurrence and potential severity of each. Formulate strategies to prevent or reduce their
likelihood or impacts. Set performance objectives by formulating an action plan, induct
and train appropriate staff and volunteers and rehearse operations.

The action plan ensures that all actions regarding potential risks are pre-emptive where
possible instead of reactive; reducing the effects of risks on the event.

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Risk Management Action Plan
     The Risk/s - Identify in order
     The Action - What Action/options are to be taken? Set Tasks
     When - set timeline for completion
     Who - allocate responsibility
     Comments/recommendations - How will the risk be monitored?

Emergency Response
To ensure staff and volunteers respond promptly to emergency situations a written Action
Plan should be made available. Instructions should be posted in appropriate areas so
everyone has access to emergency telephone numbers, to fire extinguishers, first aid and
reference to emergency exits.

Event holders should have a journal or book centrally available at the event to record any
hazardous situations and/or accidents. Record the name, address and phone number of
any injured person and describe the situation and/or cause. If appropriate, photograph
the situation in case of legal action at a later date.

Event Accident Report Form
This form must be completed after any incident including hazards, near misses and
suspicious behaviour. The aim is to establish the sequence of events which actually took
place and to determine preventative outcomes.

At the end of this section is an example accident/ incident report form. This form should
be completed in full within 24 hours after the incident.

Public Liability Insurance is required and needs to be held by the event organiser /
organisation running the event. A detailed Risk Management Plan (RMP) is required to
be completed by the event organiser / committee.

14 days prior to the event – submit risk management plan to the Shire of Mundaring
14 days prior to the event – submit Public Liability Insurance / Certificate of Currency


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Shire of Mundaring
7000 Great Eastern Highway

Telephone:   9290 6666 – ask for Health Services
Fax:         9295 3288

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Developing risk criteria

When forming a risk management plan it is vital that the applicant develop likelihood and consequence
     □ How likelihood will be defined.
     □ The kinds of consequences that will be considered.
     □ How the risk level will be determined and;
     □ How it is determined whether the risk level is such that further treatments or controls are

Risk Rating

How likelihood & Consequence is to be measured

There needs to be structured approach across the organisation to assessing both likelihood and

Please examine the following Likelihood table and think about what examples of incidents in your
organisation or the industry, have occurred, this will help you assess how likely the identified risk is to
happen. This will give a likelihood ranging from “Almost certain” to “Rare”.

Then look at the consequence of such a risk occurring on the Consequence table, determine where it
would sit if it did occur, ranging from “Insignificant” to “Catastrophic”

Plot both likelihood and consequence rating on the Risk Rating table, this will give you a category from
”Low” to “Extreme”.

The Risk Treatment table then indicates what level of action is needed to control or mitigate this risk.
Then examine the controls already in place, if they are robust, adequate, well documented, well known
etc. this will lower the rating of the risk. Remember you are trying to reduce the risks rated Extreme and
High to “as low as is reasonably practical”. Medium risk are treated if it is cost effective to do so, low
level risk will not usually be treated, all identified risks, their controls and mitigations must be recorded.

Risks that are easily foreseeable and not mitigated, leave organisations without a strong legal defense
in the unfortunate event of legal action taking place.

This system assists in the prioritizing and evaluation of risks but it is not a detailed definitive tool, just a
guide and means of recognizing priority risks, evaluating the existing controls, recording the new
controls put into place.

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Risk Treatment

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       EVENT TITLE: ________________________________________________________ EVENT DATE: ________________________

                                             AREA OF IMPACT                                REFER TO MATRIX

Risk             Description    Attendees   Public   Env.   Staff   Vendors   Likelihood    Consequences     Risk Level   Suggested Remedial Strategies

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                      Event Accident Report Form
Name of person lodging report: ________________________________________

Address: ____________________________________________________________


Phone: __________________ Email: _____________________________________

Date of lodgment: _____________________ Time: _________________________

Please state your role in the event: ______________________________________


Details of Accident / Incident

Date: ______________________________ Time: ___________________________

Exact location in which incident occurred: _______________________________



Describe the sequence of events leading up to and including the
accident/incident (what happened, how it happened etc).


Names of witnesses to incident: ________________________________________


Injuries/outcomes / preventative action taken as a result of the incident:


What action was taken - Treatment provided (Please circle appropriate

None      First Aid      Doctor Treatment        Hospital Treatment     Other


Names of people who administered treatment: ____________________________


Signature: _______________________________ Date: _____________________

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