Why should I manage risks?

Risk management results in:

fewer sudden shocks, costly surprises and unacceptable outcomes
less time spent 'fire fighting'
less disruption to schools, district, regional and Central Office operations.

A simple definition of risk:

The volatility of potential outcomes
or
How surprised do you really want to be?

What are the benefits of risk management?

We all manage risks every day; however the Department has created a risk management process which supports our daily choices. The process helps you to:

make effective decisions
consider the upside and downside of each new venture
allocate funding and resources to the right areas
prepare for external review
increase public confidence
identify opportunities
achieve objectives
meet corporate governance requirements by following an effective reporting framework
undertake effective strategic planning.

The risk management process does not ensure that all decisions are correct, but it does ensure that decisions are made on the best evidence and information at hand.

Effective risk management improves your ability to:

assess innovative processes
control costs
understand your exposure to risk
protect students and staff
target necessary resources to resolve risks.

As a part of decision making, risk management is supported by other management techniques such as performance management and continuous improvement.

As a management decision tool, risk management is also an integral component of corporate governance.

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