All organisations, including local councils, function in dynamic and unpredictable economic, social, political, legal, business, and local contexts. Risk refers to the impact of this uncertainty on an organisation's ability to meet its goals and objectives, with the effect being the possibility of outcomes differing from what was anticipated or planned. Risk can manifest as positive, negative, or a combination of both, and can give rise to opportunities, threats, or both.
Warrumbungle Shire Council (Council) will implement an Enterprise Risk Management (ERM) framework that adopts a proactive approach to identifying, analysing, evaluating, and addressing risks. Council aims to align with the principles of risk management outlined in AS ISO 31000:2018 Risk Management, ensuring effectiveness through the following eight key principles:
- Risk management is embedded in all organisational activities and decision-making processes.
- Risk management follows a structured and comprehensive approach, delivering consistent and comparable outcomes.
- The risk management framework and processes are tailored to the specific needs of the organisation.
- Risk management involves all stakeholders, considering their knowledge, perspectives, and perceptions.
- Risk management is flexible and responsive, adapting to changes and emerging events in a timely and appropriate manner.
- Risk management decisions are informed by the best available information, accounting for any limitations and uncertainties.
- Risk management acknowledges human and cultural factors.
- Risk management is regularly reviewed, evaluated, and improved through continuous learning and experience.
Click here to download Council's Enterprise Risk Management Framework(PDF, 423KB)