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Why bother with operational risk management in the Northern Territory?

We are in the Territory, we do not need risk management? We love the danger, right? Here are some reasons and quotes why you might change your mind and help convince others:

  • Increase risk awareness – What could affect the achievement of objectives? What could change? What could go wrong? What could go right?
  • Increase under standing of risk – sensitivities. What makes my risks increase/decrease/disappear?
  • Promote a “healthy” risk culture – It’s safe to talk about risk. Open and transparent.
  • Develop a common and consistent approach to risk across the organisation. Not intuition-based.
  • Allows intelligent “informed” risk-taking.
  • Focuses efforts –helps prioritize. Top 10 list. Or top 3. Or…
  • Is proactive…. not reactive – Prepare for risks before they happen. Identify risks and develop appropriate risk mitigating strategies.
  • Improve outcomes – achievement of objectives (corporate, school-based, etc)
  • Really comes to down to simple good management
  • Enables accountability, transparency and responsibility
  • And maybe even mean survival

The only alternative to risk management is crisis management — and crisis management is much more expensive, time consuming and embarrassing.

JAMES LAM, Enterprise Risk Management, Wiley Finance 2003

Without good risk management practices, government cannot manage its resources effectively. Risk management means more than preparing for the worst; it also means taking advantage of opportunities to improve services or lower costs.      

Sheila Fraser, Auditor General of Canada

 Risk comes from not knowing what you’re doing.

Warren Buffet, Berkshire Hathaway Chairman & CEO

 Insanity: doing the same thing over and over again and expecting different results.

Albert Einstein