“30 Years of Risk Management -

An Unforeseeable Journey”

James Hartnett 29 May 2014

RMIA 2014 Risk Odyssey Conference

INTRODUCTION and OVERVIEW

• Introduction and Overview

• The Law and Foreseeability

• Expect the Unexpected

• Catastrophic Events and Mitigation

• Corruption and Reputational Damage / ICAC

• Terrorism, Threats and Violence

• Some Additional Risks and Overlays

• Be Alert and Very Alarmed!!

THE LAW & FORESEEABILITY*

• Negligence –is a failure to take reasonable care to avoid causing injury or loss to another person. To be successful in an action for negligence a Plaintiff must prove:

– Duty of care: there is a duty in particular circumstances to take care. – Breach of duty of care: the behaviour or inaction of the Defendant in the particular circumstances did not

meet the standard of care which a reasonable person would meet in the circumstances. – Foreseeability of Damage: that the Plaintiff has suffered injury or loss which a reasonable person in the

circumstances could have been expected to foresee. – Causation: the damage was caused by the breach of the duty.

• Occupiers liability – People can make a claim for damages for their injuries if they can prove that

the injuries were caused by the occupiers negligence [ref s 20(1) Civil Liability Act 1936 (SA)]. In deciding whether an occupier was negligent courts will consider whether the occupier knew, or ought to have known, there was a danger, or that where people were coming on to a property what had been done to reduce or warn people about the danger.

• If a person is a trespasser no duty of care is owed (Ref. s 20(6) Civil Liability Act 1936 (SA), unless the person’s presence was reasonably foreseeable and the dangers were such that precautions should have been taken for his / her protection.

• * SOURCE: Legal Services Commission of South Australia. 2014. Law Handbook - Legal Services Commission of South Australia - Handbook Home. [ONLINE] Available at:

http://www.lawhandbook.sa.gov.au/. [Accessed 26 May 2014].

EXPECT THE UNEXPECTED

• Some Case Studies and Responses:

– Catastrophic Events and Mitigation

– Corruption, Reputational Damage and ICAC

– Terrorism, Threats and Violence

– Work Health and Safety Strict Liability

CATASTROPHIC EVENTS AND MITIGATION

BE ALERT AND BE PREPARED

• Case Studies:

– The Storm

– The Trial Evacuation v. The Real Evacuation

CORRUPTION

Source: Corruption Perceptions Index 2013 - Results. 2014. Corruption Perceptions Index 2013 - Results. [ONLINE] Available at: http://cpi.transparency.org/cpi2013/results/. [Accessed 26 May 2014].

CORRUPTION & REPUTATIONAL DAMAGE:

EVERY CEO’S / SENIOR MANAGER’S NIGHTMARE

• Some Recent Examples: – The Victims of Crime Defalcation

– Toner Cartridges Gifts & Gratuities

– Education Department Communications Failures

– Securrency International and the AWB

– The NSW ICAC Examinations

• A Case Study

• For information on reporting obligations to South Australia’s Independent

Commissioner Against Corruption, visit the ICAC website at: www.icac.sa.gov.au

TERRORISM, THREATS & VIOLENCE PUBLIC FACING ORGANISATIONS

• The Bomb Threats

• The Customer Centric Open Door Policy v. Reality

• The Dutch Lawyer’s Visit

• The Weapons Detection Experience

• The Wrong Meeting

• The Fire Bomber

SOME ADDITIONAL RISKS & OVERLAYS

• Project Management – There are inherent risks in all “projects” especially “ground up” projects e.g. –

• The insulation and NBN initiatives. • IT projects. • Implementing new legislation. • Stakeholder consultation, risk identification, monitoring and treatment should start on day one

when work on a Project Initiation (or similar) Document commences. Ideally key stakeholders should be consulted and invited to join in a risk management exercise at the earliest possible opportunity.

• Public Private Partnerships (PPPs)

– Risk shifting / sharing in PPPs creates fertile ground for failed expectations, misunderstandings and disputation.

• Work Health and Safety – WH & S - personal policy of putting WH&S on all Board and staff meetings and agendas for

past 10 years.

BE ALERT AND VERY ALARMED!!!

• The unexpected does happen …. and frequently!! • Foresight will never be as good as the 20/20 vision hindsight bestows!! • Treatment of risk is often good in theory but is wanting in practice!!

• DUE DILIGENCE: Some Reflections and Do’s and Don’ts • The Coroner Test: If you’re worried about doing something then don’t

do it – how would a Coroner view particular actions or inactions? – X ray machines – the CCV experience. – Trial Evacuations – Hospitals burn too!

• Does your organisation regularly review its risk profile?

BE ALERT AND VERY ALARMED!!!

• Are your organisation’s Emergency Management, Disaster Recovery and Business Continuity Plans:

– reasonable and proportionate having regard to the size / resources of your organisation?

– workable, affordable and supportable?

– accepted, supported and reinforced by your CEO and senior management?

– understood by key staff and / or contractors?

– always up to date?

– tested regularly by drills, audits, tests and/or full scale exercises?

– shared with other stakeholders?

• If your organisation rents space in a building, make sure your landlord has

appropriate and compliant emergency management systems / arrangements in place.