Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY 1.12 RISK MANAGEMENT PLAN 1.12.1 Introduction The risk management section of this Activity Management Plan identifies potential risks to the roading network, the consequences and likelihood of those risks occurring, and the treatments used to manage those risks. It also identifies whose responsibility it is to manage each of the identified risks. 1.12.2 Risk Management Objectives Council has developed a comprehensive risk management strategy in order to ensure that it can deliver the identified customer outcomes in a safe and efficient way on an ongoing basis. The risk management process is designed to ensure that: All significant operational and organisational risks are understood and identified, The risks with the biggest impacts, highest likelihood of occurring and all risks that should be addressed in the short to medium term are identified, Risks with the high or very high ranking scores are addressed with urgency, Risk reduction treatments which best meet business needs are applied, Responsibilities for managing risk are allocated to specific staff. 1.12.3 Sources of Risk To provide a framework for risk identification and analysis, the sources of risk and areas of impact were identified. Potential risk events were identified and categorised into three areas, being: External risk events - events largely beyond the control of Council such as the effects of natural disasters. Examples of external events and risks include extreme weather events, earthquake, crashes, vandalism, regulatory changes, electricity supply failure, change in legislation or NZTA funding criteria, etc. Physical risk events – events mainly associated with the failure of the assets due to loading characteristics, material and equipment failure. Examples of physical risks include traffic volume and composition changes, asset material failure, asset systems failure, sub standard current assets, etc. Operational risk events – events largely caused by breakdown of operational processes such as inadequate inspections, accidents or loss of key information. Examples of possible risks include resourcing, poor network management, poor construction, health & safety, inadequate inspections, environmental practice, damage to utilities, change of strategies, change of design criteria, capacity and demand planning deficiencies, cultural and political restraints, emergency response planning, consultation deficiencies, inadequate risk planning, etc. 1.12.4 Risk Analysis The process used to assess the level of risk was the following: 1. Identification of the risk events relevant to each asset group considered in this risk analysis, 2. Assessment of the probability of risk event occurrence using Table 12.4.1, 3. Evaluation of the consequence of risk event using Table 12.4.2, 4. Prioritisation of the risk using Table 12.4.3, 5. A summation of the major risks identified and the mitigation actions in place or required in Section 12.8. Only risk events of significance to the various asset groups were identified and listed in the risk register. It was not considered necessary to analyse all risk events for all asset groups at this stage. The focus was to identify the most important and to ensure that control processes were in place or listed for development in the Treatment Programme discussed in Section 12.9 and, if necessary, the Improvement Plan in Section 14. 1.12.5 Life Lines Engineering Lifelines are the essential infrastructure and services that support the life of our community such as water, wastewater and stormwater, power, gas, telecommunications, and transportation networks including road, rail, airports and ports. Lifelines Engineering is an informal, regionally-based process of lifeline utility representatives working with scientists, engineers and emergency managers to identify interdependencies and vulnerabilities to regional scale emergencies. 30 September 2014 Page 171 of Section 1