BENEFITS OF POLLUTION PREVENTION
CONTENTS PART ONE RISK MANAGEMENT 1 RISK MANAGEMENT PROCESS WHY MANAGE RISK? WHAT ARE THE APPLICATIONS OF RISK MANAGEMENT? WHAT IS THE RISK MANAGEMENT PROCESS? BENEFITS OF THE PROCESS 2 WHY USE ANYTHING OTHER THAN QUANTITATIVE RISK ASSESSMENT? QUALITATIVE RISK ASSESSMENT SEMIQUANTITATIVE RISK ASSESSMENT QUANTITATIVE RISK ASSESSMENT QUANTIFYING “NONQUANTIFIABLE” EVENTS BENEFITS OF QUANTITATIVE RISK ASSESSMENT PART TWO RISQUE METHOD 3 OVERVIEW OF THE RISQUE METHOD ROLE OF STAKEHOLDERS RISQUE METHOD STEPS 4 STAGE 1: ESTABLISH THE CONTEXT TASKS WATER UTILITY EXAMPLE 5 STAGE 2: IDENTIFY THE RISK SELECTION OF AN EXPERT PANEL THE PANEL WORKSHOP DOCUMENTATION OF THE PANEL CONCLUSIONS 6 STAGE 3: ANALYZE THE RISK QUANTITATIVE MODELING TECHNIQUES MONTE CARLO SIMULATION CALCULATE RISK QUOTIENT GENERATE RISK PROFILES AND MAPS CALCULATE RISK COST: THRESHOLD METHOD CALCULATE RISK COST: CHANCE METHOD APPLICATION OF RISK MODELING RESULTS 7 STAGE 4: FORMULATE A RISK TREATMENT STRATEGY EVALUATE RISKS AGAINST PERFORMANCE TARGETS DETERMINE RISK TREATMENT ACTIONS DEVELOP A RISK TREATMENT STRATEGY APPROVE STRATEGY FOR IMPLEMENTATION 8 STAGE 5: IMPLEMENT THE RISK TREATMENT STRATEGY RISK TREATMENT ACTIONS RISK SHARING AND RISK TRANSFER RISK REDUCTION RISK ACCEPTANCE IMPLEMENTATION RISK MANAGEMENT SYSTEMS SUMMARY 9 BENEFITS OF THE RISQUE METHOD RISK MANAGEMENT AND THE RISQUE METHOD FINANCIAL ACCOUNTABILITY ENVIRONMENTAL RESPONSIBILITY SOCIAL RESPONSIBILITY PART THREE SELECTED CASE STUDIES 10 PROJECT SELECTION: MINING, PAPUA NEW GUINEA BACKGROUND MINE WASTE MANAGEMENT PROJECT INITIAL RISK ASSESSMENT (1996–1997) FIRST REVIEW RISK ASSESSMENT (1999) SECOND REVIEW RISK ASSESSMENT (2000) 11 ACQUISITIONS: POWER, UNITED STATES SETTING RISK IDENTIFICATION RISK ANALYSIS BID STRUCTURE 12 QUANTIFYING INTANGIBLES: LAND DEVELOPMENT, AUSTRALIA IMPLEMENTATION: COST RECOVERY AND RESPONSIBILITIES 13 COMMUNITY SAFETY: TOURISM, NEW ZEALAND 14 FINANCIAL ASSURANCES: WASTE MANAGEMENT, AUSTRALIA COMPONENTS OF LANDFILL FINANCIAL ASSURANCE RISK IDENTIFICATION AND ANALYSIS ANALYSIS RESULTS 15 INDEMNITY IN PERPETUITY: MINING, NEW ZEALAND DEFINITION OF “PERPETUITY” IMPLEMENTATION AND RISK REDUCTION 16 CORPORATE REPORTING AND INSURANCE: RESOURCES PROCESSING, UNITED STATES STRATEGY DEVELOPMENT DISCLOSURE: SAB 17 ASSET MANAGEMENT: WATER, NEW ZEALAND PROJECT SETTING RISK IDENTIFICATION AND QUANTIFICATION RISK REDUCTION STRATEGIES