HB 327-2010 Communicating and Consulting About Risk (Companion to as NZS ISO 31000-2009)

This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com.HB 327:2010 Communicating and consulting about risk HB 2 HB 327:2010 This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com. Communicating and consulting about risk First published as HB 327:2010. Copyright © 2009 Standards Australia Limited. All rights reserved. No part of this publication may be reproduced or copied in any form or by any means, electronic or mechanical, including photocopying, without the written permission of the publisher. Published by Standards Australia Limited, GPO Box 476, Sydney, NSW 2001, Australia ISBN 978 0 7337 9346 2 PREFACE This guide was prepared by a Joint Standards Australia/Standards New Zealand Task Group, with guidance from Committee OB/007, Risk Management. The principal editors and contributors were: Adrian Sparrow (Chair) Dale Cooper Roger Estall Janet Gough This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com. Loata Stewart The contribution of the following individuals is gratefully acknowledged: Geraint Bermingham Neil Britten Pamela Finger Carl Gibson Kevin Knight Grant Purdy Neil Porter Brian Small Paul Stannard Michael Tarrant Grant Whitehorn The authors appreciate that communication and consultation in risk management is a fast developing area of expertise and would welcome comments and suggestions for the next edition of this Handbook. HB 327:2010 Communicating and consulting about risk CONTENTS Page This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com. PART 1: WHY DO IT? ........................................................................................................... 5 1 Communicating and consulting—The process ............................................................. 5 1.1 A key risk management tool................................................................................. 5 1.2 Communication as a process .............................................................................. 5 1.3 Consultation as a process.................................................................................... 7 1.4 Allowing for communication and consultation in the risk management framework............................................................................................................ 7 1.5 Benefits from communication and consultation.................................................... 7 1.6 It takes two to tango ............................................................................................ 8 1.7 Medium................................................................................................................ 8 1.8 Identifying stakeholders........................................................................................ 8 1.9 Engagement ........................................................................................................ 9 1.10 Power ................................................................................................................ 10 2 Perception .................................................................................................................. 11 2.1 What are risk perceptions? ................................................................................ 11 2.2 How “rules of thumb” affect perceptions............................................................ 12 2.3 Lay and specialist perceptions ........................................................................... 13 2.4 “Tolerable risk” and “acceptable risk”................................................................. 14 3 Uncertainty ................................................................................................................. 15 3.1 Risk and uncertainty .......................................................................................... 15 3.2 Measurement uncertainty................................................................................... 16 3.3 The Precautionary Principle................................................................................ 16 3.4 Communicating uncertainties............................................................................. 17 PART 2: HOW TO DO IT ...................................................................................................... 18 1 Introduction ................................................................................................................ 18 2 Managing communication and consultation................................................................ 20 2.1 Participation ....................................................................................................... 20 2.2 Participation of senior management ................................................................... 21 2.3 Engagement and participation of staff................................................................ 21 3 Supporting the risk management process .................................................................. 22 3.1 Establishing the context ..................................................................................... 22 3.2 Identifying risks .................................................................................................. 23 3.3 Analysing risks ................................................................................................... 23 3.4 Evaluating risks .................................................................................................. 23 3.5 Treating risks ..................................................................................................... 24 3.6 Monitoring and review........................................................................................ 24 4 Case studies............................................................................................................... 24 4.1 Oil spill ............................................................................................................... 24 4.2 Foot and mouth disease .................................................................................... 26 4.3 Deaths from fire ................................................................................................. 26 4.4 Traffic congestion .............................................................................................. 27 3 HB 327:2010 Communicating and consulting about risk INTRODUCTION This Handbook is a companion to the Australia/New Zealand Risk 1 Management Standard (AS/NZS ISO 31000:2009) and the Risk 2 Management Guidelines (HB 436:2004) . It uses academic research and practical experience to flesh out the “Communicate and Consult” part of the risk management process. It was written to help people who manage risk. Risk management takes place in a social context. This means that information needs to be shared by people who are affected differently by a set of risks, who know different things about those risks, and who have different views about them This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com. Communication and consultation are continual and iterative processes that an organization conducts to provide, share or obtain information and to engage in dialogue with stakeholders regarding the management of risk. The information can relate to the existence, nature, form, likelihood, significance, evaluation, acceptability and treatment of the risk. Consultation is a two-way process of informed communication between an organization and its stakeholders on an issue prior to making a decision or determining a direction on that issue. Consultation is a process which impacts on a decision through influence rather than power and is a n input to decision making, but not joint decision making. Communication and consultation should facilitate truthful, relevant, accurate and understandable exchanges of information, taking into account confidential and personal integrity aspects. This Handbook explains why communication and consultation are essential for good risk management and provides advice as to how to do this effectively. The concepts are consistent with each of the 11 principles of effective risk management described in Section 3 of AS/NZS ISO 31000:2009 including the first principle which is that risk management creates and protects value. The Handbook also shows how to take account of the mix of facts, uncertainties, perceptions, complexities, beliefs and values when taking decisions about risk. AUDIENCE This guide is intended to help individuals, organisations and specialists to understand the role and techniques of communication and consultation when managing risk -, especially when using the generic risk management process set out in AS/NZS ISO 31000:2009. USING THE GUIDE This Handbook is designed as an “owner’s handbook” rather than a “workshop manual”. It gives basic guidance for understanding and operating relevant aspects of communicating and consulting about risks. It is not an exhaustive compendium of the subjects, nor is it a report on academic research. 1 AS/NZS ISO 31000:2009 , Risk Management – Principles and Guidelines. Standards Australia and Standards New Zealand, , ISBN ISBN 0 7337 9289 8. 2 HB 436:2004, Risk Management Guidelines—Companion to AS/NZS 4360:2004. Standards Australia and Standards New Zealand, ISBN 0 7337 5960 2.[Under review] 4 HB 327:2010 Communicating and consulting about risk PART 1: WHY DO IT? 1 Communicating and consulting— The process 1.1 A key risk management tool This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com. Those responsible for assessing risks, or choosing or implementing risk treatments, need to involve other people— • to access knowledge; • to fulfil obligations of transparency (for example, public bodies are generally expected to act in a transparent way; staff who are involved in decisions that affect them tend to perform better); or • to explain what is required of others involved in implementation. 1.2 Communication as a process Effective communication has three elements. The messages must be put into a form that enables them to be transmitted. Secondly, the communication process should transmit the messages, and thirdly, the messages should be able to be “restored”, i.e. received in a form that is consistent with that transmitted, and comprehensible to the receiver. Distortions that interfere with this process can cause errors in what the receivers understand from the message. Stakeholders are likely to make judgments about risk based on their perceptions, which if left uninformed or unacknowledged can have a significant impact on the management of risk. The message itself is less important than how the message is interpreted, because people will react to what they understand from a message. This means that, when a party wants to send messages to others, the sender should take account of the— • audience attributes; • audience engagement; • audience participation; • characteristics of the medium being used; • perceptions and values of the individual parties involved; and • information quality. 5 This is a free preview. Purchase the entire publication at the link below: This is a free 6 page sample. Access the full version at http://infostore.saiglobal.com. HB 327:2010, Communicating and consulting about risk (Companion to AS/NZS ISO 31000:2009) Looking for additional Standards? Visit SAI Global Infostore Subscribe to our Free Newsletters about Australian Standards® in Legislation; ISO, IEC, BSI and more Do you need to Manage Standards Collections Online? Learn about LexConnect, All Jurisdictions, Standards referenced in Australian legislation Do you want to know when a Standard has changed? Want to become an SAI Global Standards Sales Affiliate? Learn about other SAI Global Services: LOGICOM Military Parts and Supplier Database Metals Infobase Database of Metal Grades, Standards and Manufacturers Materials Infobase Database of Materials, Standards and Suppliers Database of European Law, CELEX and Court Decisions Need to speak with a Customer Service Representative - Contact Us