RISK MANAGEMENT
Project Update – June 2016
Peter Cooke
Agknowledge®
WHAT IS RISK MANAGEMENT?
Risk is:
The effect of uncertainty on the ability of an organisation to meet its
objectives.
Risk management is:
The range of activities that an organisation intentionally undertakes
to understand and reduce these effects.
Effective risk management is:
Executing these activities efficiently and in a way that actually and
demonstrably improves the ability of the organisation to meet its
objectives in a repeatable fashion.
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TERMS OF REFERENCE – RISK MANAGEMENT SPECTRUM
Risk
strategy and
appetite
Data and
technology
Risk culture
Risk
governance
Risk
reporting
and insights
MSC Recertification
review
Risk
assessment
and
measurement
Risk
management
and
monitoring
WRL
Industry Risk
Management
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AN OVERVIEW: PROCESS
Establishing the context
Risk assessment
Risk identification
Communication
and
consultation
Risk analysis
Monitoring and
review
Risk evaluation
Risk treatment
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WRLC STRATEGIC VIEW
Our Vision
The Western Rock Lobster industry
will be a confident, viable and well
respected industry.
• Co-management of our industry
• Secure rights of access to resources
• Stewardship that results in stock
abundance
Our strategic imperative is to maintain
unity in the industry, during a period of
significant change.
Our Goals
Goal 1.
To increase industry confidence in the
role and achievements of the Council.
• Producing a premium product for
world markets
• Profitability for operators
• Secure returns for investors
• High public acceptance
• Working towards opportunity and
security for the next generation of the
industry.
Goal 2.
To grow the value of the industry by 2 –
4% per annum.
Goal 3.
To develop sources of
independent funding within three years.
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WRL INDUSTRY VALUE CHAIN
Markets &
Consumers
Processing &
Distribution
WRL Fishery &
Harvest
Industry
Management
Sustainability &
Resource Access
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VALUE CHAIN AND RISKS
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RISK REVIEW MATRIX INTERVIEWS
• In thinking about the WRL Industry as a whole:
• What do you believe is the single biggest risk facing the rock lobster
industry today?
• What do you think is the potential cause of this risk?
• What is the potential consequence of the risk?
• How can the industry move to overcome or better manage that
potential risk?
• For each of the identified potential risks, can you please provide a
score for both the risk likelihood and risk consequence
Risk Likelihood
Rare
Unlikely
Moderate
Likely
Almost certain
Risk Consequence
Low
Minor
Moderate
High
Extreme
1
2
3
4
5
Score
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RISK CRITERIA TABLE
RISK
LEVEL
CRITERIA FOR
MANAGEMENT OF RISK
RESPONSIBILITY REVIEW
RISK OWNERSHIP PERIOD
1-3
Low
Watching brief
12 months
4–7
Minor
Strategic investment
12 months
8-9
Moderate
Acceptable with adequate
controls
6-12
months
10 - 15 High
Only acceptable with
adequate controls
3-6
months
16 +
Only manageable with
considered controls
Extreme
Board Oversight
3-6
months
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KEY RECOMMENDATIONS FROM MSC BENEFIT ANALYSIS
1. WRLC invests in MSC re-certification for 2017-21.
2. Maintain representation at the MSC Stakeholder Council, and the
Association of Sustainable Fisheries.
3.
4.
5.
6.
7.
8.
9.
Negotiate a joint marketing and communications strategy with MSC.
Make members aware of the potential discount on lending margins.
Optimise the R&D investment in the industry.
Foster a discussion on animal welfare.
Work collaboratively to optimise a long term market in China.
Develop a premium ‘Australian Lobster’ brand.
Develop a Western Rock Lobster Festival with affordable product
across WA to create awareness and domestic support.
10. WRLC to look at alternate industry funding by creating a short term
collection from harvesters, to create an industry future fund.
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KEY SUGGESTIONS FROM INDUSTRY INTERVIEWS
• Diversify markets for western
•
•
•
•
•
•
•
rock lobster.
Service the local market.
Investigate an increase in quota.
Engage with NGO’s.
Address the risks with exporting
a live product.
Promote best handling practices
of the WRL.
Update the structure of the
WRLC.
Promote and raise awareness of
OH&S.
• Demonstrate industry’s social
•
•
•
•
•
•
•
•
licence to operate.
Promote the WRL industry and
raise awareness.
Re-address the quota
management system.
Establish a pot register around
transfers.
Secure property rights for
fishermen.
Engage the processing sector.
Establish policy on foreign
investment.
Consult other sectors of
Australian rock lobster industry.
Promote MSC certification.
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RISK MANAGEMENT STRATEGY – Draft
1. Work in collaboration with industry to understand and
2.
3.
4.
5.
6.
7.
investigate all market opportunities to mitigate the risk
of reliance on a single market.
Invest, manage and cultivate a strong social licence to
operate the industry.
Invest in a total industry responsibility to actively
manage the chain of custody.
Develop a high standard of occupational health and
safety in the industry.
Industry to actively manage the TACC.
Collaborate and invest in targeted research for future
security and productivity.
Develop the WRLC as a key policy and governing body
for the industry.
Discussion