EEM1 (road infrastructure) Appendix 13 - Risk analysis

Introduction

This appendix follows the principles set out in the Australian/New Zealand Standard AS/NZS 4360 on risk management. These principles are set out below and the analysis covers all these principles with the exception of treatment:

1. Establish the strategic, organisational and risk management context in which the process will take place.
2. Identify what, why and how risks can arise as the basis for analysis.
3. Assess risks in terms of their consequences and likelihood within the context of any existing controls. Consequence and likelihood can be combined to produce an estimate of risk.
4. Evaluate risks by comparing estimated levels of risk against pre-established criteria. This enables the identification of management priorities.
5. Treat risks. This should involve the acceptance and monitoring of low-priority risks and the development and implementation of risk management plans for higher priority risks.
6. Communicate and consult with all stakeholders at each stage of the risk management process. The process is often iterative.
7. Monitor and review the performance of the risk management system (plan) and any changes that may affect it.