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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
City of Victor Harbor
STORMWATER
INFRASTRUCTURE RISKMANAGEMENT PLAN
Version 1
November 2016
City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Document Control
Stormwater Infrastructure Risk ManagementPlan
Document ID: 140527 nams.plus3 advanced irmp template v3.1Rev No Date Revision Details Author Reviewer Approver1 November
2016Stormwater Asset Management Plan & CapitalWorks Programming
DEIS CEO, DPRS,DCCS, MI,MO, GL-C&M
Council
Very High High Medium LowInherent Risk 3 6 12 6Residual Risk 0 0 4 23
-10
-5
0
5
10
15
20
25
StormwaterInherent / Residual Risks
Inherent Risk Residual Risk
Linear (Inherent Risk) Linear (Residual Risk)
Inherent Risk - The probability of loss arising out of circumstances or existing in an environment, inthe absence of any action to control or modify the circumstances.
Residual Risk - A risk that remains after all efforts have been made to mitigate or eliminate risksassociated with a business process or asset. After a risk assessment, a residual risk may be knownbut not completely controllable, or, it may not be known.
City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
TABLE OF CONTENTS
1. INTRODUCTION .............................................................................................................................................. 11.1 Aim ........................................................................................................................................................ 11.2 Objectives.............................................................................................................................................. 11.3 Advanced Infrastructure Risk Management ......................................................................................... 11.4 Scope..................................................................................................................................................... 31.5 Risk Management Process .................................................................................................................... 3
2. COMMUNICATION AND CONSULTATION ....................................................................................................... 43. ESTABLISHING THE CONTEXT.......................................................................................................................... 4
3.1 Establishing the external context.......................................................................................................... 43.2 Establishing the internal context........................................................................................................... 53.3 Establishing the context of the risk management process ................................................................... 63.4 Develop risk criteria .............................................................................................................................. 6
4. RISK IDENTIFICATION...................................................................................................................................... 74.1 General.................................................................................................................................................. 7
5. RISK ANALYSIS............................................................................................................................................... 145.1 General................................................................................................................................................ 145.2 Likelihood ............................................................................................................................................ 145.3 Consequences ..................................................................................................................................... 145.4 Risk Analysis ........................................................................................................................................ 155.5 Timing of Risk Treatment .................................................................................................................... 155.6 Analysis of Risk .................................................................................................................................... 16
6. RISK EVALUATION ......................................................................................................................................... 166.1 General................................................................................................................................................ 166.2 Risk Evaluation .................................................................................................................................... 16
7. RISK TREATMENT PLANS............................................................................................................................... 237.1 General................................................................................................................................................ 237.2 Manage the Risks ................................................................................................................................ 237.3 Risk Treatment Process ....................................................................................................................... 247.4 Risk Treatments Options ..................................................................................................................... 247.5 Risk Treatment Plans........................................................................................................................... 24
8. MONITORING AND REVIEW.......................................................................................................................... 379. REFERENCES.................................................................................................................................................. 37
City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
1. INTRODUCTION
1.1 Aim
The purpose of this core infrastructure risk management plan is document the results and recommendationsresulting from periodic identification, assessment and treatment of risks associated with providing services tothe community from infrastructure, using the fundamentals of International Standard ISO 31000:2009 Riskmanagement – Principles and guidelines.
Risk Management is defined in ISO 31000:2009 as: “coordinated activities to direct and control anorganisation with regard to risk”.1
1.2 Objectives
The objectives of the plan are:
to identify risks to the City of Victor that may impact of the delivery of services from infrastructure, to select credible risks for detailed analysis, to analyse and evaluate risks in accordance with ISO 31000:2009, to prioritise risks, to identify risks requiring treatment by management action, to develop risk treatment plans identifying the tasks required to manage the risks, the
officer/authority responsible for each task, the resources required and the due completion date.
1.3 Advanced Infrastructure Risk Management
This advanced infrastructure risk management plan has been designed to be read as a supporting document toa NAMS.PLUS3 Asset Management Plan. It is based on the fundamentals of International Standard ISO31000:2009 Risk Management – Principles and guidelines.
Organisations aiming at being an effective manager of risk should comply with the following principles.
a) Risk management creates and protects value – by contributing to the demonstrable achievement ofobjectives and improvement of performance in, for example, human health and safety, security, legaland regulatory compliance, public acceptance, environmental protection, product/service quality,project management, effectiveness in operations, governance and reputation.
b) Risk management is an integral part of all organisational processes – not a stand-alone activity that isseparate from the main activities and processes of the organisation. Risk management is part of theresponsibilities of management and integral to all organisational processes, including strategicplanning and all project and change management processes.
c) Risk management is part of decision making – by helping decision makers make informed choices,prioritise actions and distinguish between alternate courses of action.
d) Risk management explicitly address uncertainty, the nature of that uncertainty and how it can beaddressed.
e) Risk management is systematic, structured and timely – which contributes to efficiency andconsistent, comparable and reliable results.
f) Risk management is based on the best available information – however, decision makers shouldinform themselves of, and should take into account, any limitations of the data or modelling used orthe possibility of divergence among experts.
1 ISO 31000:2009, p 2.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
g) Risk management is tailored – and aligned with the organisation’s external and internal control andrisk factors.
h) Risk management takes human and cultural factors into account – by recognising the capabilities,perceptions and intentions of external and internal people that can facilitate or hinder achievementof the organisation’s objectives.
i) Risk management is transparent and inclusive – through appropriate and timely involvement ofstakeholders and, in particular, decision makers at all levels of the organisation, so that riskmanagement remains relevant and up-to-date. Involvement also allows stakeholder to be properlyrepresented and to have their views taken into account in determining risk criteria.
j) Risk management is dynamic, iterative and responsive to change – by continually sensing andresponding to change. As external and internal events occur, context and knowledge change,monitoring and review of risks take place, new risks emerge, some change and some disappear.
k) Risk management facilitates continual improvement of the organisation – from development andimplementation of strategies to improve their risk management maturity alongside all other aspectsof the organisation.2
The success of risk management depends on the effectiveness of the management framework providing thefoundations and arrangements that will embed it throughout the organisation at all levels. The frameworkensures that information about risk derived from the risk management process is adequately reported andused as a basis for decision making and accountability at all relevant organisation levels.3 The dependency ofthe management framework components in managing risk is shown in Figure 1.3.
Fig 1.3: Relationship between the components of framework for managing riskSource: Based on ISO 31000; 2009, Fig 2, p 9
2 ISO 3100:2009, Sec 3, pp 7-8.3 ISO 3100: 2009, Sec 4.1, p 8.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
1.4 Scope
This plan considers risks to services delivery from Stormwater infrastructure.
1.5 Risk Management Process
The risk management process used in this project is shown in Figure 1.5 below.
It is an analysis and problem solving technique designed to provide a logical process for the selection oftreatment plans and management actions to protect the community against unacceptable risks.
The process is based on the fundamentals of International Standard ISO 31000:2009.
RISK ASSESSMENT
ESTABLISHING THE CONTEXT
- The external context- The internal context- Define risk criteria
RISK ANAYLSIS
Identify existing controls
Determine DetermineConsequences Likelihood
Determine level of risk
RISK EVALUATION
- Compare against risk criteria- Set priorities
Is riskacceptable?
RISK TREATMENT
- Identify options (cost & residual risk)- Assess options (risk reduction & cost)- Prepare and implement treatment plans- Communicate residual risks
RISK IDENTIFICATION
- What can happen?- When and why?- How and why?
Yes
No
Fig 1.5: Risk Management Process – DetailSource: Based on ISO 31000; 2009, Fig 3, p 14
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
2. COMMUNICATION AND CONSULTATION
Risk communication and consultation is “continual and iterative processes that an organisation conducts toprovide, share or obtain information and to engage in dialogue with stakeholders regarding the managementof risk”.4
Appropriate communication and consultation seeks to:
Improve people’s understanding of risks and the risk management processes, Ensure that the varied views of stakeholders are considered, and Ensure that all participants are aware of their roles and responsibilities. 5
The development of this infrastructure risk management plan was undertaken using a consultative teamapproach to:
Identify stakeholders and specialist advisors who need to be involved in the risk management process, Discuss and take into account the views of stakeholder and specialist advisors, and Communicate the results of the risk management process to ensure that all stakeholders are aware of
and understand their and roles and responsibilities in risk treatment plans.
Members of the team responsible for preparation of this risk management plan are:
Director of Environment & Infrastructure Services Senior Management Team Manager Infrastructure Infrastructure Officer Manager Operations Group Leader – Construction & Maintenance
3. ESTABLISHING THE CONTEXT
In establishing the context, “the organisation articulates its objectives, defines the external and internalparameters to be taken into account when managing risk, and sets the scope and risk criteria for the remainingprogress”.6
The context is established in three stages, external, internal and risk criteria.
3.1 Establishing the external context
The external context is the external environment in which the organisation seeks to achieve its objectives.Understanding the external context is important to ensure that the objectives and concerns of externalstakeholders are considered when developing risk criteria. This external context can include but is not limitedto:
The social and cultural, political, legal, regulatory, financial, technological, economic, natural andcompetitive environment in which the organisation operates,
Key drivers and trends impacting on the objectives of the organisation, and Relationships with, perceptions and values of external stakeholders.7
This is to determine the crucial elements which might support or impair its ability to manage the risksassociated with its operation.
4 ISO 31000:2009, Sec 2.12, p 3.5 HB 436:2004, Sec 3.1, p 20.6 ISO 31000:2009, Sec 5.3.1, p 15.7 ISO 31000:2009, Sec 5.5.2, p 15.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Key items of the external environment within which City of Victor Harbor operates are:
Legislative change Climate adaptation Provision of services (service levels) Population growth Demographics Expectation Funding & grant arrangements Financial analysis & sustainability
3.2 Establishing the internal context
The internal context is the internal environment in which the organisation seeks to achieve its objectives. Itincludes anything within the organisation that can influence the way in which an organisation will managerisks. It should be established because:
risk management takes place in the context of the organisation’s objectives, objectives and criteria of a particular project, process and activity should be considered in the light of
objectives of the organisation as a whole, and some organisations fail to recognise opportunities to achieve their strategic, project or business
objectives, and this affects ongoing organisational commitments, credibility trust and value.8
The purpose of this stage is to align the risk management process with the organisation’s culture, processes,structure and strategy. It is essential that the organisation understands its internal context which can include,but is not limited to:
governance, organisational structure, roles and accountabilities, policies, objectives, and the strategies that are in place to achieve them, capabilities, understood in terms of resources and knowledge (eg capital, time, people, processes,
systems and technologies), the relationships with and perceptions and values of internal stakeholders, the organisation’s culture, information systems, information flows and decisions making processes (both formal and informal), standards, guidelines and models adopted by the organisation, and form and extent of contractual relationships.9
City of Victor Harbor operates many management practices and procedures to identify and manage risksassociated with providing services from infrastructure assets. These include:
operating a reactive maintenance service for all assets and services, operating a planned maintenance system for key assets, monitoring condition and remaining service life of assets nearing the end of their service life, renewing and upgrading assets to maintain service delivery, closing and disposing of assets not providing the required service level, and acquiring or constructing new assets to provide new and improved services.
Service Levels are reviewed from to time to achieve greater cost effectiveness and efficiency in its servicedelivery to the community.
8 ISO 3100:2009, Sec 5.3.3, pp 15.9 ISO 3100:2009, Sec 5.3.3, pp 15-16.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
3.3 Establishing the context of the risk management process
This stage of context development is the risk management context. It includes setting the objectives,strategies, scope and parameters of the services to which the risk management process is being applied. Theprocess should be undertaken with the need to balance costs, benefits and opportunities. The resourcesrequired and records to be kept should also be required.
The context of the risk management process will vary according to the needs of an organisation. It can involve,but is not limited to:
defining the goals and objectives of the risk management activities, defining responsibilities for and within the risk management process, defining the scope, as well as the depth and breadth of the risk management activities to be carried
out, including specific inclusions and exclusions, defining the activity, process, function, project, product, service or asset in terms of time and location, defining the relationships between a particular project, process or activity and other projects,
processes or activities of the organisation, defining the risk assessment methodologies, defining the way performance and effectiveness is evaluated in the management of risk, identifying and specifying the decisions that have to be made, and identifying, scoping or framing studies needed, their extent and objectives, and the resources
required for such studies.10
The organisation has assigned responsibilities for managing risks associated with assets and service delivery tothe following departments.
Regulatory and Planning Services Environment and Infrastructure Services Corporate and Community Services
3.4 Develop risk criteria
The purpose of this stage is to develop the criteria against which risk is to be evaluated. The criteria shouldreflect the organisation's values, objectives and resources and the interests of stakeholders. This may dependon operational, technical, financial, legal, social, humanitarian, or other criteria.
Some criteria can be imposed by, or derived from, legal and regulatory requirements and other requirementsto which the organisation subscribes. Risk criteria should be consistent with the organisation's riskmanagement policy, be defined at the beginning of any risk management process and be continually reviewed.
When defining risk criteria, factors to be considered should include the following:
the nature and types of causes and consequences that can occur and how they will be measured, how likelihood will be defined, the timeframe(s) of the likelihood and/or consequence(s), how the level of risk is to be determined, the views of stakeholders, the level at which risk becomes acceptable or tolerable, and whether combinations of multiple risks should be taken into account and, if so, how and which combinations should be considered.11
The risk evaluation criteria used in this risk management plan are shown in Table 3.4. This criteria is used toidentify risk that are not acceptable to the organisation.
Table 3.4: Risk Evaluation Criteria
10 ISO 31000:2009, Sec 5.3.4, p 16.11 ISO 31000:2009, Sec 5.3.5, p 17.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Criterion Risk Evaluation (Not Acceptable) Criteria
Operational Risks that have the potential to reduce services for a period of time unacceptableto the community and/or adversely affect the organisation’s public image.
Technical Risks that cannot be treated by the organisation’s existing and/or readily availabletechnical resources.
Financial Risks that cannot be treated within the organisation’s normal maintenance budgetsor by reallocation of an annual capital works program.
Legal Risks that have the potential to generate unacceptable exposure to litigation.Social Risks that have the potential to:
- cause personal injury or death and/or- cause significant social/political disruption in the community.
Environmental Risks that have the potential to cause environmental harm.
The evaluation criteria are to provide guidance to evaluate whether the risks are acceptable to theorganisation and its stakeholders in providing services to the community. Risks that meet the evaluationcriteria above are deemed to be unacceptable and risk management plans are required to be developed anddocumented in this Infrastructure Risk Management Plan.
4. RISK IDENTIFICATION
4.1 General
Risk identification seeks to identify the risks to be managed. A well-structured systematic process is crucial,because a potential risk not identified at this stage is excluded from further analysis. All risks should beidentified, whether or not they are under the control of the organisation.
The risks are identified in three stages:
What can happen? The aim is to generate a comprehensive list of events which might affect eachelement of the organisation’s service delivery.
How and why it can happen? It is necessary to consider possible causes and scenarios. There aremany ways and event can be initiated. It is important that no significant causes are omitted.
Are risks credible? An assessment of credibility of all risk is undertaken to ensure that credible risksreceive proper and due consideration.
The assets at risk, what can happen, when, possible cause(s), existing controls and assessment of credibility ofthe risk by the risk management team are shown in Table 4.1.
Credible risks are subjected to risk analysis in Section 5.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Table 4.1: Risk Identification
RISK IDENTIFICATIONRiskNo.
Asset providing theService
What can happen? When canit occur?
Possible cause Existing controls Is riskcredible?
1 Stormwater - Side EntryPits Blocked
Overflow to roads and properties Anytimein thefuture
Side Entry Pitscontaining largevolumes of debris
Regular side entry pit visual inspections Yes
2 Climate Change Rising sea levels & changes toweather patterns will impact on thecapacity of the existing stormwatersystem & an increase in flood proneareas from more frequent extremetidal & storm events
Within 20years
Sea level rise, (ClimateChange)
Refer to AWE Victor Harbor CoastalManagement Study 2013
Yes
3 Major Flooding Property & road flooding at specificlocations causing major damage &traffic hazards.
Anytimein thefuture
Stormwater systemcapacity, storm eventincreases are likely tooccur more frequently
Upgrade known problem areas withallocated funds
Yes
4 Jagger Dam (HicksReserve)
Embankment failure causingsignificant downstream propertydamage
Anytimenow
Weak / poor structuralembankment, dam notengineered
Tender for works called, commencedDecember 2013
Yes
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
5 Water runoff from ruralvacant land - TabernacleRd
Flooding to residential areas, excesswater run-off from vacant rural land
Within 5years
Stormwater runoff fromvacant rural land
Earth bund placed to divert runoff Yes
6 Water runoff from ruralvacant land - WishartCourt
Flooding to residential areas, excesswater run-off from vacant rural land
Within 5years
Stormwater runoff fromvacant rural land
No protection Yes
7 Waterport Rd - WaterRunning Over Road - DPTI
Stormwater crossing DTPI recentlyconstructed roundabout RE.Waterport Rd
Within 5years
Stormwater runoff fromvacant rural land
Culverts placed, capacity issue Yes
8 Cakebread Road - WaterRunning over drivewaysthrough Properties
Flooding of properties Within 5years
Stormwater runoff fromroad network
Inadequate stormwater infrastructure Yes
9 Field Ave/Brand/Pine -Stormwater Run Off fromHigher Developed Areas -Capacity
Potential flooding of properties Anytimein thefuture
Stormwater runoff fromdeveloped properties &aged care facility
Inadequate stormwater infrastructure Yes
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
10 Lamont Court - Propertieslower than HindmarshRiver high water levels
Potential flooding of properties Anytimenow
Hindmarsh River heightcausing Lamont Courtflooding back throughsystem
Current system is inadequate Yes
11 Bacchus Wetlands Potential Flooding of Roads Within 20years
Lack of Capacity Wetlands provided, reviewing holdingcapacity
Yes
12 Mill Road - VacantPaddock Water Run Off
Rural land water runoff Within 1year
Water runoff fromvacant rural land
Limited due to rural land owned byothers, placed drains
Yes
13 Harborough Area -General StormwaterOutlets
Overflow to roads Anytimein thefuture
Single Side Entry Pits Change single to double side entry pits Yes
14 Inman River, CatchmentFlows
Embankment collapse Within 20years
Water volume andvelocity
Vegetation Yes
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
15 Side Entry Pits CapacityIssues - Single PitsUpgrade to Double SEP's
Overflow to roads Within 1year
Single Side Entry Pits Change single to double side entry pits Yes
16 Bridges and Crossovers Undermining of Bridge Abutments /Columns
Within 5years
Volume of Water Flow Remove Debris and Blockages, detailedinspections every five yrs.
Yes
17 Ridgeway and Hope St -Electric Pumps
Pumps failing due to no power Anytimein thefuture
Mains power failure Currently relying on mains power Yes
18 Yilki Common Reserve Water over road and possible floodingof properties
Anytimein thefuture
Capacity concerns, lowpoint, no infrastructure
Pumping water when reserve full Yes
19 Swains Crossing, Stockand Sawpit Rds.
Water Over Roads Within 2-3 years
Roads are known asfords
Permanent water depth markers placedon road shoulders. Water over roadsigns placed out when water crosses
Yes
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
20 Kerb & Channel - NonUrban Areas
Large volumes of water may enterproperties
Anytimein thefuture
No kerb & channelplaced to control waterentry & directing waterflows
Budget bids placed to council eachfinancial year to place k&C, about 14kmsof urban roads don’t have k&c
Yes
21 Glen Rd - Overflow openchannel
Potential flooding of land Within 5years
Stormwater volume Regular maintenance to ensure clean &with no/or limited vegetation
No
22 Nettle Hill Rd - Drains -Washed - VacantPaddocks
Open surface drains, scouring Within 5years
Stormwater volume Widen drains, ensure that grasses/vegetation does exist, place cementtreated quarry rubble when repairing
No
23 San Remo Court - Part ofBacchus WetlandsConnection Works
Potential Flooding Within 20years
Lack of Capacity Wetlands provided, reviewing holdingcapacity
Yes
24 Acraman/Hinkler St -Stormwater Upgrade
Potential Flooding Within 10years
Lack of Capacity Placed in Asset Management Plan /CWP. Identified in KBR 2005, StormwaterUrban Report
Yes
25 Yandra Tce/BrandwoodReserve StormwaterDrains
Flooding Within 10years
Lack of Capacity, veryold infrastructure,inadequate
Redesign completed,implementation/construction upgrade
Yes
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
26 Beach Outfall Outlets -Maintenance
Blockages Anytimein thefuture
Debris & beach sandbuilt up
Programmed works, cyclic maintenanceschedule
Yes
27 Encounter Lakes - WaterQuality
Cloudy water quality Within 20years
Stormwater runoff Monitor water quality, water testing byHealth Officer
Yes
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
5. RISK ANALYSIS
5.1 General
Risk is analysed by combining estimates of likelihood and consequences in the context of existing controlmeasures. The objective of a risk analysis is to separate the minor acceptable risks from the major risks and toprovide data to assist in assessment and treatment of risk.
The level of risk is determined by considering two aspects against existing controls:
how likely it is that things may happen (likelihood, frequency of probability), and the possible consequences (impact or magnitude of the effect) if they do occur.
The risk analysis process is to:
identify the existing management controls, technical systems and procedures to control risk, evaluate the likelihood of events occurring and their consequences in the context of these existing
controls, and combine the evaluation of likelihood and consequences to produce a level of risk.
5.2 Likelihood
Likelihood is a qualitative description of probability of an event occurring. The process of determininglikelihood involves combining information about estimated or calculated probability, history or experience.Where possible it is based on past records, relevant experience, industry practice and experience, publishedliterature or expert judgement. The qualitative likelihood descriptors are shown in Table 5.2.
Table 5.2: Likelihood Descriptors
Likelihood Descriptor Probability of occurrenceRare May occur only in exceptional circumstances More than 20 years
Unlikely Could occur at some time Within 10-20 yearsPossible Might occur at some time Within 3-5 years
Likely Will probably occur in most circumstances Within 2 yearsAlmost certain Expected to occur in most circumstances Within 1 year
5.3 Consequences
Consequences are a qualitative description of the effect of the event. The process of determiningconsequences involved combining information about estimated or calculated effects, history and experience.The qualitative likelihood descriptors are shown in Table 5.3.
The worst case consequence from the 5 consequence criteria in Table 5.3 is used for risk analysis.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Table 5.3: Consequence Descriptors
Consequence Injury ServiceInterruption Environment Finance Reputation
Insignificant Nil < 4 hrs Nil < $20k NilMinor First Aid Up to 1 day Minor short
term$20k - $100k Minor media
Moderate Medicaltreatment
1 day – 1 week Wide short term $100k - $500k Moderatemedia
Major Disability 1 week – 1month
Wide long term $500k - $1M High media
Catastrophic Fatality More than 1month
Irreversible longterm
> $1M Censure/Inquiry
5.4 Risk Analysis
The risk assessment process compares the likelihood of a risk event occurring against the consequences of theevent occurring. In the risk assessment matrix table below, a risk event with a likelihood of ‘Possible’ and aconsequence of ‘Major’ has a level of risk of ‘High’. This level of risk is used to develop a typical risk treatmentin Section 6.1.
Table 5.4: Risk Assessment Matrix
Risk Rating
Likelihood ConsequencesInsignificant Minor Moderate Major Catastrophic
Rare L L M M H
Unlikely L L M M H
Possible L M H H H
Likely M M H H VH
Almost Certain M H H VH VHRef: HB 436:2004, Risk Management Guidelines, Table. 6.6 p 55.
5.5 Timing of Risk Treatment
The level of risk is used to determine risk treatments. Risk treatments can range from immediate correctiveaction (such as stop work, make safe or prevent use of the asset) for ‘Very High’ risks to manage by routineprocedures for ‘Low’ risks.
Using the example from Section 5.4, an event with a ‘High Risk’ rating will require ‘Prioritised action’.
Table 5.4: Timing of Risk Management Required
Level of Risk Timing of Action Required
VH Very High Risk Immediate corrective action
H High Risk Prioritised action required
M Medium Risk Planned action required
L Low Risk Manage by routine procedures
Immediate corrective action may include combinations of stopping work, making the area safe, preventing useof the asset and/or scheduling replacement as soon as possible. Prioritised action may include making theareas safe and implementing a short term work program to reduce the risk through improved maintenance orreplacement of the asset. Planned action may include shifting the asset from a reactive maintenance to a
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
planned maintenance management regime and/or scheduling component/asset replacement in the current ornext budget. Manage by routine procedures involves managing the risk through existing operations andmaintenance procedures.
5.6 Analysis of Risk
The team conducted an analysis of credible risks identified in Table 4.1 using the method described above todetermine a level of risk for each credible risk.
The credible risks and levels of risk are shown in Table 6.2.
6. RISK EVALUATION
6.1 General
Risk evaluation involves comparing the level of risk found during the analysis process with previouslyestablished risk evaluation criteria and deciding whether the risks can be accepted.
Options should be evaluated on the basis of the extent of risk reduction and the extent of benefits oropportunities created, taking into account the criteria developed in Section 3.4.
In general, the adverse impact of risks should be made as low as reasonably practicable irrespective of anyabsolute criteria. A combination of options may give the optimum risk reduction outcome.
If the risks fall into the acceptable or low categories, they may be accepted with minimal further treatment.Acceptable or low risks should be monitored and periodically reviewed to ensure they remain acceptable.
If the risks do not fall into the acceptable or low category, they should be managed using one of the optionsbelow.
The output of risk evaluation is a prioritised list of risks for further action.
6.2 Risk Evaluation
Table 6.2 shows the evaluation of risks using the criteria determined in Section 4 and identified risks that areconsidered as not acceptable to meet the organisation’s objectives and for which, risk treatment plans arerequired. Risk treatment plans are developed in Section 7.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Table 6.2 Risk Analysis and Evaluation
RISK ANALYSISLikelihood Conseq.
InjuryConseq. Service
Int.Conseq.
EnvironmentConseq.Financial
Conseq.Reputation
OverallConsequences
Riskrating
Action required
Possible Minor Insignificant Insignificant Insignificant Minor Minor Medium Planned actionrequired
Likely Major Major Catastrophic Catastrophic Major Catastrophic Very High Immediate correctiveaction
Possible Insignificant Minor Minor Minor Minor Minor Medium Planned actionrequired
Likely Catastrophic Catastrophic Catastrophic Catastrophic Catastrophic Catastrophic Very High Immediate correctiveaction
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Possible Insignificant Insignificant Minor Minor Minor Minor Medium Planned actionrequired
Likely Moderate Minor Minor Minor Moderate Moderate High Prioritised actionrequired
Likely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Medium Planned actionrequired
Likely Insignificant Moderate Minor Minor Moderate Moderate High Prioritised actionrequired
Almostcertain
Insignificant Minor Insignificant Minor Moderate Moderate High Prioritised actionrequired
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Almostcertain
Insignificant Minor Insignificant Minor Moderate Moderate High Prioritised actionrequired
Possible Insignificant Insignificant Minor Minor Minor Minor Medium Planned actionrequired
Possible Insignificant Insignificant Insignificant Insignificant Minor Minor Medium Planned actionrequired
Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures
Almostcertain
Minor Major Major Moderate Major Major Very High Immediate correctiveaction
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures
Likely Major Moderate Minor Major Moderate Major High Prioritised actionrequired
Likely Insignificant Minor Insignificant Minor Minor Minor Medium Planned actionrequired
Likely Insignificant Minor Insignificant Insignificant Minor Minor Medium Planned actionrequired
Possible Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Possible Insignificant Minor Minor Insignificant Minor Minor Medium Planned actionrequired
Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures
Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures
Possible Insignificant Insignificant Minor Minor Minor Minor Medium Planned actionrequired
Possible Insignificant Moderate Minor Moderate Moderate Moderate High Prioritised actionrequired
Possible Insignificant Minor Minor Minor Minor Minor Medium Planned actionrequired
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Possible Minor Insignificant Insignificant Insignificant Minor Minor Medium Planned actionrequired
Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routineprocedures
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
7. RISK TREATMENT PLANS
7.1 General
The treatment of risk involves identifying the range of options for treating risk, evaluating those options,preparing risk treatment plans and implementing those plans.
This includes reviewing existing guides for treating that particular risk, such as Australian and State legislationand regulations, Australian Standards and Best Practise Guides. Developing risk treatment options starts withunderstanding how risks arise, understanding the immediate causes and the underlying factors that influencewhether the proposed treatment will be effective.
One treatment option is to remove the risk completely by discontinuing the provision of the service. Otheroptions include risk reduction by reducing the likelihood and/or the consequences of the risk.
7.2 Manage the Risks
Risks need to be managed appropriately to the significance of the risk and importance of the affecteditem/asset to the organisation’s service delivery. As a general guide:
low levels of risk can be accepted and additional action may not be needed; these risks should bemonitored,
major or significant levels of risk should be managed with actions to reduce or eliminate the risk, high levels of risk require close management and the preparation of a formal plan to manage the
risks.
Options for managing risk are shown below. The optimum solution may involve a combination of options.
Avoid the risk by deciding not to proceed with the activity that would incur the risk, or choose analternative course of action that achieves the same outcome,
Reduce the level of risk by reducing the likelihood of occurrence or the consequences, or both; the likelihood may be reduced through management controls, organisational or other
arrangements which reduce the frequency of, or opportunity for errors, such as alternativeprocedures, quality assurance, testing, training, supervision, review, documented policy andprocedures, research and development.
the consequences may be reduced by ensuring that management or other controls, or physicalbarriers, are in place to minimise any adverse consequences, such as contingency planning,contract conditions or other arrangements.
Transfer the risk by shifting the responsibility to another party (such as an insurer), who ultimatelybears the consequences if the event occurs. Risks should be allocated to the party which can exercisethe most effective control over those risks.
Accept and retain the risks within the organisation where they cannot be avoided, reduced orreduced or transferred, or where the cost to avoid or transfer the risk is not justified, usually becausethe risk is acceptable or low. Risks can be retained by default, ie. Where there is a failure to identifyand/or appropriately transfer or otherwise manage risks
The cost of managing risks needs to be commensurate with the benefits obtained, the significance of the eventand the risks involved.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
7.3 Risk Treatment Process
The risk treatment process comprises 5 steps.
Step 1. Review causes and controls
The risk identification process documented in Section 5 included identifying possible causes and documentingexisting controls.
Step 2. Develop treatment options
Treatment options include those that eliminate risk, reduce the likelihood or the risk event occurring, reducingthe consequences should the risk event occur, sharing of the risk with others and accepting the risk.
Step 3. Assess risk treatment options against costs and residual risk
The method of assessment of risk treatment options can range from an assessment by a local group ofstakeholders and practitioners experienced in operation and management of the assets/service to detailed riskcost and risk reduction cost/benefit analysis.
Step 4. Select optimum risk treatment
Step 5. Develop risk treatment plans
7.4 Risk Treatments Options
The risk treatment options identified for non-acceptable risks shown in Table 6.2 are detailed in Table 7.4.
7.5 Risk Treatment Plans
From the optimum risk treatment options identified in Table 7.4, risk treatment plans were developed.
The risk treatment plans identify for each non-acceptable risk:-
1. Proposed action2. Responsibility3. Resource requirement/budget4. Timing5. Reporting and monitoring required
The risk treatment plan is shown in Table 7.5.
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Table 7.4: Risk Treatment
RISK TREATMENT OPTIONS OPTIONS RESIDUAL RISKNo. Treatment option(s) Cost
$000Likelihood
(from Col H)Consequences
(from Col N)Residual
risk
A Regular & planned maintenance schedule developed $20 Possible Minor MediumB Planned Street Sweeper Regime $110 Unlikely Insignificant Low
CDA Reference AWE Coastal Management Study 2013 - Resolution No. OC 13/0514, 25 November 2013 $1,700 Likely Major HighB Resilient Hills and Coasts-Climate Change Adaptation Plan $30 Likely Major High
C FY2017-18 CVH Adaptation Plan - Develop $55 Likely Major HighDA Identify problem areas 'Hot Spots' create Action Plan $20 Possible Minor Medium
B Urban Stormwater Master Plan, KBR (2005) - Actioned of a number of years. $30 Possible Minor Medium
C
DA Redesign Embankment undertaken by KBR, designs & technical specification completed. $40B Ellers Contractors undertook Dam works and per design & specification. Project completed $380 Rare Minor Low
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
CDA Construct temporary earth bund to protect rear of homes $1 Possible Minor Medium
B Adelaide Development Company (ADC) meeting to discuss joint options for their vacant rural land $1 Possible Minor Medium
C FY2017-18 council budget bid for stormwater design works $65 Possible Minor MediumD Implement design works for construction FY2018-19 $880 Unlikely Insignificant LowA Underground drains $10 Unlikely Insignificant LowB Design/Construction $50 Unlikely Insignificant LowCDA Advise DPTI Re. Design $0 Possible Insignificant Low
BCDA Design Upgrade $60 Possible Moderate HighB Construction $500 Unlikely Insignificant Low
C Prioritised in Councils AM Plan / CWPDA FY2016-17 Design $20 Unlikely Insignificant LowB FY2017-18 Construction $585 Unlikely Insignificant Low
C Prioritised in Councils AM Plan / CWP
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
DA FY2015-16 Design $30 Unlikely Insignificant LowB FY2016-17 Construction $300 Unlikely Insignificant Low
C Prioritised in Councils AM Plan / CWPDA Design CompletedB FY2016-17 Review Design $20 Unlikely Insignificant Low
C FY2019-20 Construction $1,560 Unlikely Insignificant LowDA Drains placed in vacant land by owner, purpose to divert water run-off away from home $2 Possible Minor Medium
BCDABCDA Engage Coffey - geotechnical specialists $60 Likely Major High
B Coffey Design Treatment $40 Rare Minor Low
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
C FY2016-17 Construction $100 Rare Minor Low
DABCDA Inspection of Bridges every 4 yrs. planned asset revaluations & condition assessments $40 Possible Moderate HighB Action Cyclic Inspections / General Maintenance $20 Unlikely Minor Low
C
DA Investigate Solar backup system $40 Possible Minor Medium
B
CDA Design, explore existing network $35 Likely Minor Medium
B FY2021-22 Construction $350 Unlikely Minor Low
CDA
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
BCDA Council budgets bids placed forward each FY that incorporates urban road & stormwater network
improvements$400 Possible Minor Medium
B
CDABCDABCDA Design CompletedB FY2016-17 Review Design $20 Unlikely Insignificant Low
C FY2019-20 Construction $1,560 Unlikely Insignificant LowDA FY2015-16 Design Completed $40B FY2018-19 Construction $1,300 Unlikely Minor Low
C
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
DA FY2014-15 Design Completed $40 Possible Minor MediumB FY2016-17 Construction - Stage 1 of 2 $335 Unlikely Minor Low
C FY2017-18 Construction - Stage 2 of 2 $600 Unlikely Minor Low
DA Cyclic Programmed Maintenance Works $77 Unlikely Insignificant Low
B Watch & listen for thunderstorm, rainy weather warnings
CDA Water quality monitoring by CVH Health Officer $0 Unlikely Insignificant Low
B Refer to Encounter Lakes Management Plan, advice on water quality monitoring cyclic events & locations $0 Unlikely Insignificant Low
CD
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Table 7.5: Risk Treatment Plan
RISK TREATMENT PLANTreatment Plan[best option(s)]
ResidualRisk
Actions Responsibility Resources Budget$000
Date due
Establish an agreedregular & planned cyclicmaintenance schedule,particularly before winterbreaks.
Low 1 Staff check side entry pits Man Oper Staff $20 cyclic2 Planned street sweeping program Man Oper Contractor $110 cyclic
34
Council to start allocatingfunds in a RESERVEaccount for this ongoingproject to protect the cityof victor harbor.
Medium 1 AWE Coastal Management Study -Resolution No. OC 13/0514, dated 25November 2013
Man Infras Staff $0 Nov-13
2 Resilient Hills and Coasts-ClimateChange Adaptation Plan; CouncilEndorsed - Resolution No.OC5442016, dated 26 Sept 2016
Man E&R Internal Staff $0 Sep-16
3 FY2017-18 Seek council funding,develop local adaptation plan
Council to approvebudget
Staff $55 Jun-18
4Require additionalfunding to address allconcerns, isolated shortterm road flooding maybe acceptable
Medium 1 Place out appropriate road signage,place depth markers
Man Infras Staff $20 on-going
2 KBR 2005, Urban Stormwater Report.Action over a numbers of years.
Man Infras Staff/Contractors Annual Budget,Program Works
3 Review KBR 2005, Stormwater UrbanReport
Man Infras KBR $155 FY17-18
4Works completed in Low 1 KBR staff to oversee works KBR Outsource $17 Feb-13
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
February 2014 2
34
Considered in AssetManagement Plan, design& implementation - kerb& channel andunderground stormwatersystem
Low 1 FY2017-18 council budget bid forstormwater design works
Council to approvebudget
Staff $65 Jun-18
2 FY2018-19 Implement design worksfor construction
Council to approvebudget
Internal Staff $880 Jun-19
34
FY2016-17 UndertakeWorks
Low 1 FY2016-17 Undertake works, adjustbudget to accommodate
Man Infras Staff $60 Jun-17
234
Advised DPTI September2016, if rectified low risk
Low 1 FY2016-17 DPTI Undertake works asadvised
DPTI DPTI 0 Jun-17
234
Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 FY2017-18 Design Man Infras Staff $60 Jun-182 FY2019-20 Construction Council to approve
budgetStaff $600 Jun-20
34
Prioritised in Councils Low 1 FY2016-17 - Design DEIS Staff $20 Jun-17
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
Stormwater AM Plan /CWP
2 FY2017-18 Construction Council to approvebudget
$585 Jun-18
34
Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 FY2015-16 Design DEIS Staff $30 Jun-162 FY2016-17 Construction Council to approve
budgetStaff / Contractor $300 Jun-17
34
Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 FY2016-17 Design Review Man Infras $20 Jun-172 FY2019-20 Construction Council to approve
budgetStaff $1,560 Jun-20
34
Monitor paddock draineffectiveness
Medium 1 FY2016-17 Maintenance budget,place concrete diversion
Man Oper Staff $4 Jun-17
234
Low 1234
Report to November 2016Council meeting for
Low 1 FY2016-17 Geotechnical Findings Man Infras Coffey $60 Nov-16
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
endorsement, if approvedRisk accessed as Low
2 FY2016-17 Treatment Design Council to approvebudget
Coffey $40 Mar-17
3 FY2016-17 Construction Council to approvebudget
Staff $100 Jun-17
4Low 1
234
Depot Staff - CyclicInspections - March, Septeach year
Low 1 Purchase Assetic Works MaintenanceModule
$40 Jul-17
2 Set up works tickets for cyclicinspection to occur each year
Council to approvebudget
Staff $2 Nov-16
3 Bridges asset assessment every 4 yrs.- structural & condition
Man Infas Assetic $45 4yrs.
4Investigate options withsolar back up
Medium 1 Investigate seek options with costs Man Oper Man Oper $40 Feb-17
2 FY2017-18 Place budget bid forwardto council
Council to approvebudget
Man Infras $40 Jul-17
34
Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 FY2019-20 Design Council to approvebudget
Man Infras $35 Jun-20
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
2 FY2020-21 Construction Council to approvebudget
Man Infras $350 Jun-21
34
Low 1234
Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 Each financial year - Design Council to approvebudget
Budget Bid Officer >$40 June
2 Each financial year - Construction Council to approvebudget
Budget Bid Officer >$400 June
34
Low 1234
Low 1234
Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 FY2016-17 Design Review Man Infras $20 Jun-172 FY2019-20 Construction Council to approve
budgetStaff $1,560 Jun-20
3
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
4Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 FY2015-16 Design Completed Man Infras2 FY2018-19 Construction Council to approve
budgetOutsource $1,300 Jun-19
34
Prioritised in CouncilsStormwater AM Plan /CWP
Low 1 FY2015-16 Design Completed Man Infras Staff $40 Jun-152 FY2016-17 Construction - Stage 1 of 2 Council to approve
budgetStaff $335 Jun-17
3 FY2017-18 Construction - Stage 2 of 2 Council to approvebudget
Staff $600 Jun-18
4Cyclic programmedmaintenance works byfield staff
Low 1 FY2016-17 - Maintenance UrbanStormwater Budget
Council to approvebudget
Staff $77 Jun-17
2
34
Water quality monitoringas per Encounter LakesManagement Plan
Low 1 Annual water quality monitoring asper Encounter Lakes ManagementPlan
Council to approvebudget
Staff $20 AnnualOccurrence
2
34
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City of Victor Harbor – Stormwater Infrastructure Risk Management Plan
8. MONITORING AND REVIEW
Monitoring and review is an essential and integral step in the process of managing risk. It is necessary tomonitor risks, the effectiveness of any plans, strategies and management systems that have been establishedto control implementation of risk management actions.
The plan will be monitored and reviewed as follows.
Table 8: Monitoring and Review Program
Activity Review ProcessReview of new risks and changes toexisting risks
Review by team with stakeholders and report to council
Review of Risk Management Plan 3 yearly review and re-write by team and report to councilPerformance review of Risk TreatmentPlan
Action plan tasks incorporated in council staff performancecriteria with 6 monthly performance review.Action plan tasks for other organisations reviewed at annualteam review meeting
9. REFERENCES
ISO 31000:2009, Risk management – Principles and guidelines, Standards Australia, Sydney.
HB 436:2004, Risk Management Guidelines, Companion to AS/NZS 4360:2004, Standards Australia, Sydney.
IPWEA, 2011, International Infrastructure Management Manual, Institute of Public Works EngineeringAustralasia, Sydney, www.ipwea.org/IIMM
Annual Business Plan & Budget
Asset Management Plan - Stormwater
Community Plan 2022
Victor Harbor AWE Coastal Management Plan 2013
Urban Stormwater Master Plan, KBR 2005