Risk management in other industries

for defined situations. Nonetheless, there is general acceptance in all documents regarding the fundamental issues of risk assessment – namely, the identification, analysis and evaluation of hazards or events on the basis of risk. In the latter documents, there has been considerable adaptation of these generic themes according to the purpose of the risk assessment. For example and as acknowledged by the relevant committee, the approach in the EC document is specifically designed to assess risk to human or animal health from defined ‘risk sources’ such as chemicals, micro-organisms and physical factors. Likewise, import risk analysis described in the OIE document is undertaken specifically to minimise disease risks associated with international trade. These approaches each relate to the risk assessment of a specific hazard or hazards, such as a chemical, infectious agent or physical factor. SUMMARY: The reviewed risk management models each take a relatively generic approach to risk management and risk communication. Although the approach to risk assessment is generic within the AustralianNew Zealand Standard, it has been significantly adapted in the latter models, reflecting the specialised nature of risk sources in different contexts.

3.3.3 Risk management in other industries

Approaches to risk management have been reviewed in a number of industries, in Australia and elsewhere, including: • Correction Health Services, Hunter Health each in Australia, Shire Pharmaceuticals and AstraZeneca both based in the UK • Queensland Health, Gold Coast Water and the Department of Human Resources Victoria In the first group of industries, strategies for risk management were developed with assistance from KPMG, an international advisory firm with specialist skills in this area. The second group of industries is reviewed for comparison. The AustralianNew Zealand Standard for Risk Management ASNZS 4360:1999 – currently under revision has been used as the basis for risk management in all of these industries. Further, and in keeping with accepted international practice, this framework has then been adapted to address a specific industry context. In each of the former four industries, KPMG’s role was to embed a risk management culture by assessing current risk management activities and developing a simple yet robust framework that allowed entities to manage, monitor and report on their strategic risks ciontinuously. During this process, KPMG also contribute tools, templates and information on ‘what works and what doesn’t’ based on collective experience over many years to ensure that the approach to risk management is practical and easily adopted. Further detail about risk management in the latter three industries is available as follows: • Queensland Health Guidelines for Managing Risk in the Health Care Sector 13 ; • Gold Coast Water Water Quality Management System 14 ; and • the Victorian Department of Human Resources Code of Practice for Water Treatment Service Providers – Cooling Tower Systems 15 . 13 http:www.health.qld.gov.auinfectioncontroldocumentspdfInfection20Control20Program.pdf 14 http:www.goldcoast.qld.gov.auattachmentEnvironmental_Report_2000_pgs10_12.pdf 15 http:www.legionella.vic.gov.audownloads0951201code_practice.pdf 46 It is important to note that many of the international standards such as the AustraliaNew Zealand Standard for Risk Management are generic, and specifically aim to provide guidance to organisations when developing their own approaches to risk management. Logically, it is expected that these frameworks will be modified by industries to meet specific needs, to address specific risks and to maximise adoption throughout any given organisation. In contrast, reports such as the ‘The first report on the harmonisation of risk assessment procedures from the European Commission’ reviewed previously have been developed specifically to ensure greater harmonisation amongst already-adapted risk management frameworks. Although this latter document has been developed to address a specific need and may not be directly relevant to live export, it could assist the LESCO with the development of educational material and templates, and when conducting training courses on risk management. SUMMARY: The AustralianNew Zealand Standard for Risk Management is used as the basis of risk management in a diverse range of industries. This Standard has been developed with the intention that it will be modified by individual industries to meet specific needs, to address specific risks, and to maximise adoption throughout any given organisation. SUMMARY: The recommendations from this review – namely, the adaptation of the AustralianNew Zealand Standard for Risk Management – is consistent with the general approach is risk management within a diverse range of industries in Australia and elsewhere.

3.4 A new approach to risk management during live export

3.4.1 An appropriate risk management model

After considering each of the previous comments, it is clear that there is a need for a shift from a prescriptive standards approach. Logically, the risk management models which are accepted internationally as appropriate approaches to risk management deserve detailed consideration. With respect to each of the reviewed models, the broad approaches to risk management namely, the assessment, management and communication of risk are relevant to all industries, including the live export trade. Further, each of the fundamental issues relating to risk assessment that is, risk identification, analysis and evaluation is also relevant. Logically, therefore, the methodology of the AustralianNew Zealand Standard for Risk Management – with modification as required – is appropriate to this industry. In contrast, there are sound reasons why the EC and OIE methodologies are not directly applicable in this context, as follows: 47