NFP Consulting Group Experience Expertise Excellence

What is Risk Management?

• The Risk Management Process allows an organisation to set parameters for appropriate risk. All organisations have to take some risks to survive and develop - it is important to ensure that employees understand that Risk Management does not mean "zero" risk.
• It defines unacceptable risks and offers ways to avoid these risks.
• It reduces the likelihood of a risk occurring.
• It allows the transfer of risk to third parties, or parts of the organisation which are better able to manage it
  Risk Management establishes a level of competency which can be audited and reviewed by regulatory authorities, shareholders, employees, customers and any other stakeholders.
• Risk exposure is more transparent and executives are more accountable.
• Long term targets can be set with greater confidence.

Why Consider Risk Management?

The development of a Risk Management Plan is critical for any organisation of any size .It should be viewed as an important business improvement process and not just a set of policies and procedures that need to be done for regulatory purposes, which do not relate to the daily round of business.

A Risk Management Plan, properly developed and implemented, complements all the important business functions – not just Administration, Finance and regulation.

For a Risk Management Plan to be effective it must be understood and used by everyone in your organisation – not just senior management or the employees involved primarily with audit and regulatory affairs.
By giving everyone in the organisation an opportunity to participate in the Risk Management process, the organisation gains greater transparency, better viability and encourages analysis at every level.

Is There a Standard Format ?

Whilst there are well defined processes and steps to help develop your Risk Management plan, there is no truly standard format. Many organizations do, however, adopt the "Identification and Analysis" approach which NFP has considerable experience in implementing (this approach is based on the generic methodology set out is AS/NZS 4360:2004).

Each organization should develop a plan which meets their needs – this may range from considerable work and significant documentation for large complex organizations, to simple, specifically targeted plans for smaller organizations or projects.

The most important thing in developing a plan is analysis and simplicity– seeing what clearly explains and measures the organisation’s Risk Management on those areas judged critical for the organization.

NFP’s Approach

NFP believes in working very closely with their clients throughout the whole Risk Management Planning process – from pre-work scoping to the final developed plan and communication roll – out.

And our commitment doesn’t stop there – once the initial plan (or plans) is completed, NFP offer continued assistance and advice on the evolution of the planning process. We can train your staff to understand a range of techniques in hazard identification, risk assessment and risk management; and develop an awareness of the tools that can assist to “think through” risk management processes, so that they can take over ownership and further development of risk management in your organisation.

Alternatively, NFP can also offer a continued consultancy in an annual post audit process as well as assisting in redefining Risk kpis (Key Performance Indicators) as market conditions change.

NFP strongly believes that the development of a comprehensive Risk Management Plan linked to strategic development and business planning is the most effective way for any organization – large or small – to become more motivated, effective and profitable.

NFP’s consultants and associates have substantial experience in Risk Management Planning – both in the profit and not-for- profit areas. We look forward to discussing your specific needs in a no obligation meeting, to help define and plan your next steps in the Risk Management Planning process.

What next?

NFP CONSULTING GROUP PTY LIMITED is a boutique consultancy providing practical assistance to organisations, their boards, management and staff in a cost effective manner across a broad range of issues. Call 02 8865 8800 today to speak to IAN MCHUGH, Director about how NFP can help your organisation achieve its full potential.

NFP Consulting Group Pty Limited
www.nfpconsulting.com.au