Attachment A

item 14.1.1

City of Victor Harbor

STORMWATER

INFRASTRUCTURE RISK
MANAGEMENT PLAN

Version 1

November 2016

City of Victor Harbor – Stormwater Infrastructure Risk Management Plan

 Stormwater Infrastructure Risk Management
Plan
Document Control

Document ID: 140527 nams.plus3 advanced irmp template v3.1

Rev No Date Revision Details Author Reviewer Approver
1 November Stormwater Asset Management Plan & Capital DEIS CEO, DPRS, Council
2016 Works Programming DCCS, MI,
MO, GL-
C&M

Stormwater
Inherent / Residual Risks
25
20
15
10
5
0
-5
-10
Very High High Medium Low
Inherent Risk 3 6 12 6
Residual Risk 0 0 4 23

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, in
the 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 risks
associated with a business process or asset. After a risk assessment, a residual risk may be known
but not completely controllable, or, it may not be known.

City of Victor Harbor – Stormwater Infrastructure Risk Management Plan

TABLE OF CONTENTS

1. INTRODUCTION .............................................................................................................................................. 1
1.1 Aim ........................................................................................................................................................ 1
1.2 Objectives.............................................................................................................................................. 1
1.3 Advanced Infrastructure Risk Management ......................................................................................... 1
1.4 Scope..................................................................................................................................................... 3
1.5 Risk Management Process .................................................................................................................... 3
2. COMMUNICATION AND CONSULTATION ....................................................................................................... 4
3. ESTABLISHING THE CONTEXT.......................................................................................................................... 4
3.1 Establishing the external context.......................................................................................................... 4
3.2 Establishing the internal context........................................................................................................... 5
3.3 Establishing the context of the risk management process ................................................................... 6
3.4 Develop risk criteria .............................................................................................................................. 6
4. RISK IDENTIFICATION...................................................................................................................................... 7
4.1 General.................................................................................................................................................. 7
5. RISK ANALYSIS............................................................................................................................................... 14
5.1 General................................................................................................................................................ 14
5.2 Likelihood ............................................................................................................................................ 14
5.3 Consequences ..................................................................................................................................... 14
5.4 Risk Analysis ........................................................................................................................................ 15
5.5 Timing of Risk Treatment .................................................................................................................... 15
5.6 Analysis of Risk .................................................................................................................................... 16
6. RISK EVALUATION ......................................................................................................................................... 16
6.1 General................................................................................................................................................ 16
6.2 Risk Evaluation .................................................................................................................................... 16
7. RISK TREATMENT PLANS............................................................................................................................... 23
7.1 General................................................................................................................................................ 23
7.2 Manage the Risks ................................................................................................................................ 23
7.3 Risk Treatment Process ....................................................................................................................... 24
7.4 Risk Treatments Options ..................................................................................................................... 24
7.5 Risk Treatment Plans........................................................................................................................... 24
8. MONITORING AND REVIEW.......................................................................................................................... 37
9. REFERENCES.................................................................................................................................................. 37

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1. INTRODUCTION

1.1 Aim

The purpose of this core infrastructure risk management plan is document the results and recommendations
resulting from periodic identification, assessment and treatment of risks associated with providing services to
the community from infrastructure, using the fundamentals of International Standard ISO 31000:2009 Risk
management – Principles and guidelines.

Risk Management is defined in ISO 31000:2009 as: “coordinated activities to direct and control an
organisation 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 to
a NAMS.PLUS3 Asset Management Plan. It is based on the fundamentals of International Standard ISO
31000:2009 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 of
objectives and improvement of performance in, for example, human health and safety, security, legal
and 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 is
separate from the main activities and processes of the organisation. Risk management is part of the
responsibilities of management and integral to all organisational processes, including strategic
planning 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 be
addressed.

e) Risk management is systematic, structured and timely – which contributes to efficiency and
consistent, comparable and reliable results.

f) Risk management is based on the best available information – however, decision makers should
inform themselves of, and should take into account, any limitations of the data or modelling used or
the possibility of divergence among experts.

1 ISO 31000:2009, p 2.

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g) Risk management is tailored – and aligned with the organisation’s external and internal control and
risk 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 achievement
of the organisation’s objectives.

i) Risk management is transparent and inclusive – through appropriate and timely involvement of
stakeholders and, in particular, decision makers at all levels of the organisation, so that risk
management remains relevant and up-to-date. Involvement also allows stakeholder to be properly
represented 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 and
responding 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 and
implementation of strategies to improve their risk management maturity alongside all other aspects
of the organisation.2

The success of risk management depends on the effectiveness of the management framework providing the
foundations and arrangements that will embed it throughout the organisation at all levels. The framework
ensures that information about risk derived from the risk management process is adequately reported and
used as a basis for decision making and accountability at all relevant organisation levels. 3 The dependency of
the management framework components in managing risk is shown in Figure 1.3.

Fig 1.3: Relationship between the components of framework for managing risk
Source: 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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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 of
treatment plans and management actions to protect the community against unacceptable risks.

The process is based on the fundamentals of International Standard ISO 31000:2009.

ESTABLISHING THE CONTEXT

- The external context
- The internal context
- Define risk criteria

RISK ASSESSMENT
RISK IDENTIFICATION
- What can happen?
- When and why?
- How and why?

RISK ANAYLSIS
Identify existing controls
Determine Determine
Consequences Likelihood
Determine level of risk

RISK EVALUATION
- Compare against risk criteria
- Set priorities

Is risk Yes
acceptable?

No

RISK TREATMENT
- Identify options (cost & residual risk)
- Assess options (risk reduction & cost)
- Prepare and implement treatment plans
- Communicate residual risks

Fig 1.5: Risk Management Process – Detail

Source: Based on ISO 31000; 2009, Fig 3, p 14

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2. COMMUNICATION AND CONSULTATION

Risk communication and consultation is “continual and iterative processes that an organisation conducts to
provide, share or obtain information and to engage in dialogue with stakeholders regarding the management
of 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 team
approach 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 internal
parameters to be taken into account when managing risk, and sets the scope and risk criteria for the remaining
progress”.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 external
stakeholders are considered when developing risk criteria. This external context can include but is not limited
to:

 The social and cultural, political, legal, regulatory, financial, technological, economic, natural and
competitive 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 risks
associated 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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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. It
includes anything within the organisation that can influence the way in which an organisation will manage
risks. 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 risks
associated 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 service
delivery 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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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. The
process should be undertaken with the need to balance costs, benefits and opportunities. The resources
required 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 to
the 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 should
reflect the organisation's values, objectives and resources and the interests of stakeholders. This may depend
on operational, technical, financial, legal, social, humanitarian, or other criteria.

Some criteria can be imposed by, or derived from, legal and regulatory requirements and other requirements
to which the organisation subscribes. Risk criteria should be consistent with the organisation's risk
management 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 to
identify 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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Criterion Risk Evaluation (Not Acceptable) Criteria

Operational Risks that have the potential to reduce services for a period of time unacceptable
to 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 available
technical resources.
Financial Risks that cannot be treated within the organisation’s normal maintenance budgets
or 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 the
organisation and its stakeholders in providing services to the community. Risks that meet the evaluation
criteria above are deemed to be unacceptable and risk management plans are required to be developed and
documented 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 be
identified, 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 each
element of the organisation’s service delivery.
 How and why it can happen? It is necessary to consider possible causes and scenarios. There are
many 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 risks
receive proper and due consideration.

The assets at risk, what can happen, when, possible cause(s), existing controls and assessment of credibility of
the 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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Table 4.1: Risk Identification

RISK IDENTIFICATION
Risk Asset providing the What can happen? When can Possible cause Existing controls Is risk
No. Service it occur? credible?
1 Stormwater - Side Entry Overflow to roads and properties Anytime Side Entry Pits Regular side entry pit visual inspections Yes
Pits Blocked in the containing large
future volumes of debris

2 Climate Change
Rising sea levels & changes to Within 20 Sea level rise, (Climate Refer to AWE Victor Harbor Coastal Yes
weather patterns will impact on the years Change) Management Study 2013
capacity of the existing stormwater
system & an increase in flood prone
areas from more frequent extreme
tidal & storm events

3 Major Flooding Property & road flooding at specific Anytime Stormwater system Upgrade known problem areas with Yes
locations causing major damage & in the capacity, storm event allocated funds
traffic hazards. future increases are likely to
occur more frequently

4 Jagger Dam (Hicks Embankment failure causing Anytime Weak / poor structural Tender for works called, commenced Yes
Reserve) significant downstream property now embankment, dam not December 2013
damage engineered

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5 Water runoff from rural Flooding to residential areas, excess Within 5 Stormwater runoff from Earth bund placed to divert runoff Yes
vacant land - Tabernacle water run-off from vacant rural land years vacant rural land
Rd

6 Water runoff from rural Flooding to residential areas, excess Within 5 Stormwater runoff from No protection Yes
vacant land - Wishart water run-off from vacant rural land years vacant rural land
Court

7 Waterport Rd - Water Stormwater crossing DTPI recently Within 5 Stormwater runoff from Culverts placed, capacity issue Yes
Running Over Road - DPTI constructed roundabout RE. years vacant rural land
Waterport Rd

8 Cakebread Road - Water Flooding of properties Within 5 Stormwater runoff from Inadequate stormwater infrastructure Yes
Running over driveways years road network
through Properties

9 Field Ave/Brand/Pine - Potential flooding of properties Anytime Stormwater runoff from Inadequate stormwater infrastructure Yes
Stormwater Run Off from in the developed properties &
Higher Developed Areas - future aged care facility
Capacity

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10 Lamont Court - Properties Potential flooding of properties Anytime Hindmarsh River height Current system is inadequate Yes
lower than Hindmarsh now causing Lamont Court
River high water levels flooding back through
system

11 Bacchus Wetlands Potential Flooding of Roads Within 20 Lack of Capacity Wetlands provided, reviewing holding Yes
years capacity

12 Mill Road - Vacant Rural land water runoff Within 1 Water runoff from Limited due to rural land owned by Yes
Paddock Water Run Off year vacant rural land others, placed drains

13 Harborough Area - Overflow to roads Anytime Single Side Entry Pits Change single to double side entry pits Yes
General Stormwater in the
Outlets future

14 Inman River, Catchment Embankment collapse Within 20 Water volume and Vegetation Yes
Flows years velocity

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15 Side Entry Pits Capacity Overflow to roads Within 1 Single Side Entry Pits Change single to double side entry pits Yes
Issues - Single Pits year
Upgrade to Double SEP's

16 Bridges and Crossovers Undermining of Bridge Abutments / Within 5 Volume of Water Flow Remove Debris and Blockages, detailed Yes
Columns years inspections every five yrs.

17 Ridgeway and Hope St - Pumps failing due to no power Anytime Mains power failure Currently relying on mains power Yes
Electric Pumps in the
future

18 Yilki Common Reserve Water over road and possible flooding Anytime Capacity concerns, low Pumping water when reserve full Yes
of properties in the point, no infrastructure
future

19 Swains Crossing, Stock Water Over Roads Within 2- Roads are known as Permanent water depth markers placed Yes
and Sawpit Rds. 3 years fords on road shoulders. Water over road
signs placed out when water crosses

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20 Kerb & Channel - Non Large volumes of water may enter Anytime No kerb & channel Budget bids placed to council each Yes
Urban Areas properties in the placed to control water financial year to place k&C, about 14kms
future entry & directing water of urban roads don’t have k&c
flows

21 Glen Rd - Overflow open Potential flooding of land Within 5 Stormwater volume Regular maintenance to ensure clean & No
channel years with no/or limited vegetation

22 Nettle Hill Rd - Drains - Open surface drains, scouring Within 5 Stormwater volume Widen drains, ensure that grasses/ No
Washed - Vacant years vegetation does exist, place cement
Paddocks treated quarry rubble when repairing

23 San Remo Court - Part of Potential Flooding Within 20 Lack of Capacity Wetlands provided, reviewing holding Yes
Bacchus Wetlands years capacity
Connection Works

24 Acraman/Hinkler St - Potential Flooding Within 10 Lack of Capacity Placed in Asset Management Plan / Yes
Stormwater Upgrade years CWP. Identified in KBR 2005, Stormwater
Urban Report

25 Yandra Tce/Brandwood Flooding Within 10 Lack of Capacity, very Redesign completed, Yes
Reserve Stormwater years old infrastructure, implementation/construction upgrade
Drains inadequate

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26 Beach Outfall Outlets - Blockages Anytime Debris & beach sand Programmed works, cyclic maintenance Yes
Maintenance in the built up schedule
future

27 Encounter Lakes - Water Cloudy water quality Within 20 Stormwater runoff Monitor water quality, water testing by Yes
Quality years Health Officer

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5. RISK ANALYSIS

5.1 General

Risk is analysed by combining estimates of likelihood and consequences in the context of existing control
measures. The objective of a risk analysis is to separate the minor acceptable risks from the major risks and to
provide 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 determining

likelihood 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, published
literature or expert judgement. The qualitative likelihood descriptors are shown in Table 5.2.

Table 5.2: Likelihood Descriptors

Likelihood Descriptor Probability of occurrence

Rare May occur only in exceptional circumstances More than 20 years
Unlikely Could occur at some time Within 10-20 years
Possible Might occur at some time Within 3-5 years
Likely Will probably occur in most circumstances Within 2 years
Almost 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 determining
consequences 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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Table 5.3: Consequence Descriptors

Service
Consequence Injury Environment Finance Reputation
Interruption
Insignificant Nil < 4 hrs Nil < $20k Nil
Minor First Aid Up to 1 day Minor short $20k - $100k Minor media
term
Moderate Medical 1 day – 1 week Wide short term $100k - $500k Moderate
treatment media
Major Disability 1 week – 1 Wide long term $500k - $1M High media
month
Catastrophic Fatality More than 1 Irreversible long > $1M Censure/
month term Inquiry

5.4 Risk Analysis

The risk assessment process compares the likelihood of a risk event occurring against the consequences of the
event occurring. In the risk assessment matrix table below, a risk event with a likelihood of ‘Possible’ and a
consequence of ‘Major’ has a level of risk of ‘High’. This level of risk is used to develop a typical risk treatment
in Section 6.1.

Table 5.4: Risk Assessment Matrix

Risk Rating
Likelihood Consequences
Insignificant 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 VH
Ref: 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 corrective
action (such as stop work, make safe or prevent use of the asset) for ‘Very High’ risks to manage by routine
procedures 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 use
of the asset and/or scheduling replacement as soon as possible. Prioritised action may include making the
areas safe and implementing a short term work program to reduce the risk through improved maintenance or
replacement of the asset. Planned action may include shifting the asset from a reactive maintenance to a

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planned maintenance management regime and/or scheduling component/asset replacement in the current or
next budget. Manage by routine procedures involves managing the risk through existing operations and
maintenance procedures.

5.6 Analysis of Risk

The team conducted an analysis of credible risks identified in Table 4.1 using the method described above to
determine 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 previously
established 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 or
opportunities 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 any
absolute 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 options
below.

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 are
considered as not acceptable to meet the organisation’s objectives and for which, risk treatment plans are
required. Risk treatment plans are developed in Section 7.

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Table 6.2 Risk Analysis and Evaluation

RISK ANALYSIS
Likelihood Conseq. Conseq. Service Conseq. Conseq. Conseq. Overall Risk Action required
Injury Int. Environment Financial Reputation Consequences rating
Possible Minor Insignificant Insignificant Insignificant Minor Minor Medium Planned action
required

Likely Major Major Catastrophic Catastrophic Major Catastrophic Very High Immediate corrective
action

Possible Insignificant Minor Minor Minor Minor Minor Medium Planned action
required

Likely Catastrophic Catastrophic Catastrophic Catastrophic Catastrophic Catastrophic Very High Immediate corrective
action

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Possible Insignificant Insignificant Minor Minor Minor Minor Medium Planned action
required

Likely Moderate Minor Minor Minor Moderate Moderate High Prioritised action
required

Likely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Medium Planned action
required

Likely Insignificant Moderate Minor Minor Moderate Moderate High Prioritised action
required

Almost Insignificant Minor Insignificant Minor Moderate Moderate High Prioritised action
certain required

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Almost Insignificant Minor Insignificant Minor Moderate Moderate High Prioritised action
certain required

Possible Insignificant Insignificant Minor Minor Minor Minor Medium Planned action
required

Possible Insignificant Insignificant Insignificant Insignificant Minor Minor Medium Planned action
required

Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routine
procedures

Almost Minor Major Major Moderate Major Major Very High Immediate corrective
certain action

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Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routine
procedures

Likely Major Moderate Minor Major Moderate Major High Prioritised action
required

Likely Insignificant Minor Insignificant Minor Minor Minor Medium Planned action
required

Likely Insignificant Minor Insignificant Insignificant Minor Minor Medium Planned action
required

Possible Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routine
procedures

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Possible Insignificant Minor Minor Insignificant Minor Minor Medium Planned action
required

Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routine
procedures

Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routine

procedures

Possible Insignificant Insignificant Minor Minor Minor Minor Medium Planned action
required

Possible Insignificant Moderate Minor Moderate Moderate Moderate High Prioritised action
required

Possible Insignificant Minor Minor Minor Minor Minor Medium Planned action
required

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Possible Minor Insignificant Insignificant Insignificant Minor Minor Medium Planned action
required

Unlikely Insignificant Insignificant Insignificant Insignificant Insignificant Insignificant Low Manage by routine
procedures

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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 legislation
and regulations, Australian Standards and Best Practise Guides. Developing risk treatment options starts with
understanding how risks arise, understanding the immediate causes and the underlying factors that influence
whether the proposed treatment will be effective.

One treatment option is to remove the risk completely by discontinuing the provision of the service. Other
options 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 affected
item/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 be
monitored,
 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 an
alternative 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 alternative
procedures, quality assurance, testing, training, supervision, review, documented policy and
procedures, research and development.
 the consequences may be reduced by ensuring that management or other controls, or physical
barriers, 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 ultimately
bears the consequences if the event occurs. Risks should be allocated to the party which can exercise
the most effective control over those risks.
 Accept and retain the risks within the organisation where they cannot be avoided, reduced or
reduced or transferred, or where the cost to avoid or transfer the risk is not justified, usually because
the risk is acceptable or low. Risks can be retained by default, ie. Where there is a failure to identify
and/or appropriately transfer or otherwise manage risks

The cost of managing risks needs to be commensurate with the benefits obtained, the significance of the event
and the risks involved.

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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 documenting
existing controls.

Step 2. Develop treatment options

Treatment options include those that eliminate risk, reduce the likelihood or the risk event occurring, reducing
the 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 of
stakeholders and practitioners experienced in operation and management of the assets/service to detailed risk
cost 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 action
2. Responsibility
3. Resource requirement/budget
4. Timing
5. Reporting and monitoring required

The risk treatment plan is shown in Table 7.5.

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Table 7.4: Risk Treatment

RISK TREATMENT OPTIONS OPTIONS RESIDUAL RISK

No. Treatment option(s) Cost Likelihood Consequences Residual
$000 (from Col H) (from Col N) risk
A Regular & planned maintenance schedule developed $20 Possible Minor Medium
B Planned Street Sweeper Regime $110 Unlikely Insignificant Low

C
D
A Reference AWE Coastal Management Study 2013 - Resolution No. OC 13/0514, 25 November 2013 $1,700 Likely Major High
B Resilient Hills and Coasts-Climate Change Adaptation Plan $30 Likely Major High

C FY2017-18 CVH Adaptation Plan - Develop $55 Likely Major High

D
A 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

D
A Redesign Embankment undertaken by KBR, designs & technical specification completed. $40
B Ellers Contractors undertook Dam works and per design & specification. Project completed $380 Rare Minor Low

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C
D
A 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 Medium
D Implement design works for construction FY2018-19 $880 Unlikely Insignificant Low
A Underground drains $10 Unlikely Insignificant Low
B Design/Construction $50 Unlikely Insignificant Low
C
D
A Advise DPTI Re. Design $0 Possible Insignificant Low

B
C
D
A Design Upgrade $60 Possible Moderate High
B Construction $500 Unlikely Insignificant Low

C Prioritised in Councils AM Plan / CWP

D
A FY2016-17 Design $20 Unlikely Insignificant Low
B FY2017-18 Construction $585 Unlikely Insignificant Low

C Prioritised in Councils AM Plan / CWP

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D
A FY2015-16 Design $30 Unlikely Insignificant Low
B FY2016-17 Construction $300 Unlikely Insignificant Low

C Prioritised in Councils AM Plan / CWP

D
A Design Completed
B FY2016-17 Review Design $20 Unlikely Insignificant Low

C FY2019-20 Construction $1,560 Unlikely Insignificant Low

D
A Drains placed in vacant land by owner, purpose to divert water run-off away from home $2 Possible Minor Medium

B
C
D
A
B
C
D
A Engage Coffey - geotechnical specialists $60 Likely Major High

B Coffey Design Treatment $40 Rare Minor Low

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C FY2016-17 Construction $100 Rare Minor Low

D
A
B
C
D
A Inspection of Bridges every 4 yrs. planned asset revaluations & condition assessments $40 Possible Moderate High
B Action Cyclic Inspections / General Maintenance $20 Unlikely Minor Low

D
A Investigate Solar backup system $40 Possible Minor Medium

C
D
A Design, explore existing network $35 Likely Minor Medium

B FY2021-22 Construction $350 Unlikely Minor Low

C
D
A

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B
C
D
A Council budgets bids placed forward each FY that incorporates urban road & stormwater network $400 Possible Minor Medium
improvements

C
D
A
B
C
D
A
B
C
D
A Design Completed
B FY2016-17 Review Design $20 Unlikely Insignificant Low

C FY2019-20 Construction $1,560 Unlikely Insignificant Low

D
A FY2015-16 Design Completed $40
B FY2018-19 Construction $1,300 Unlikely Minor Low

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D
A FY2014-15 Design Completed $40 Possible Minor Medium
B FY2016-17 Construction - Stage 1 of 2 $335 Unlikely Minor Low

C FY2017-18 Construction - Stage 2 of 2 $600 Unlikely Minor Low

D
A Cyclic Programmed Maintenance Works $77 Unlikely Insignificant Low

B Watch & listen for thunderstorm, rainy weather warnings

C
D
A 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

C
D

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Table 7.5: Risk Treatment Plan

RISK TREATMENT PLAN

Treatment Plan Residual Actions Responsibility Resources Budget Date due
[best option(s)] Risk $000
Establish an agreed Low 1 Staff check side entry pits Man Oper Staff $20 cyclic
regular & planned cyclic 2 Planned street sweeping program Man Oper Contractor $110 cyclic
maintenance schedule,
particularly before winter
breaks. 3
4
Council to start allocating Medium 1 AWE Coastal Management Study - Man Infras Staff $0 Nov-13
funds in a RESERVE Resolution No. OC 13/0514, dated 25
account for this ongoing November 2013
project to protect the city 2 Resilient Hills and Coasts-Climate Man E&R Internal Staff $0 Sep-16
of victor harbor. Change Adaptation Plan; Council
Endorsed - Resolution No.
OC5442016, dated 26 Sept 2016

3 FY2017-18 Seek council funding, Council to approve Staff $55 Jun-18

develop local adaptation plan budget
4
Require additional Medium 1 Place out appropriate road signage, Man Infras Staff $20 on-going
funding to address all place depth markers
concerns, isolated short 2 KBR 2005, Urban Stormwater Report. Man Infras Staff/Contractors Annual Budget,
term road flooding may Action over a numbers of years. Program Works
be acceptable

3 Review KBR 2005, Stormwater Urban Man Infras KBR $155 FY17-18
Report
4
Works completed in Low 1 KBR staff to oversee works KBR Outsource $17 Feb-13

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February 2014 2

3
4
Considered in Asset Low 1 FY2017-18 council budget bid for Council to approve Staff $65 Jun-18
Management Plan, design stormwater design works budget
& implementation - kerb
& channel and
2 FY2018-19 Implement design works Council to approve Internal Staff $880 Jun-19
underground stormwater
for construction budget
system

3
4
FY2016-17 Undertake Low 1 FY2016-17 Undertake works, adjust Man Infras Staff $60 Jun-17
Works budget to accommodate
2
3
4
Advised DPTI September Low 1 FY2016-17 DPTI Undertake works as DPTI DPTI 0 Jun-17
2016, if rectified low risk advised
2
3
4
Prioritised in Councils Low 1 FY2017-18 Design Man Infras Staff $60 Jun-18
Stormwater AM Plan / 2 FY2019-20 Construction Council to approve Staff $600 Jun-20
CWP budget

3
4
Prioritised in Councils Low 1 FY2016-17 - Design DEIS Staff $20 Jun-17

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Stormwater AM Plan / 2 FY2017-18 Construction Council to approve $585 Jun-18

CWP budget

3
4
Prioritised in Councils Low 1 FY2015-16 Design DEIS Staff $30 Jun-16
Stormwater AM Plan / 2 FY2016-17 Construction Council to approve Staff / Contractor $300 Jun-17
CWP budget

3
4
Prioritised in Councils Low 1 FY2016-17 Design Review Man Infras $20 Jun-17
Stormwater AM Plan / 2 FY2019-20 Construction Council to approve Staff $1,560 Jun-20
CWP budget

3
4
Monitor paddock drain Medium 1 FY2016-17 Maintenance budget, Man Oper Staff $4 Jun-17
effectiveness place concrete diversion

2
3
4
Low 1
2
3
4
Report to November 2016 Low 1 FY2016-17 Geotechnical Findings Man Infras Coffey $60 Nov-16
Council meeting for

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endorsement, if approved 2 FY2016-17 Treatment Design Council to approve Coffey $40 Mar-17
Risk accessed as Low budget

3 FY2016-17 Construction Council to approve Staff $100 Jun-17

budget

4
Low 1
2
3
4
Depot Staff - Cyclic Low 1 Purchase Assetic Works Maintenance $40 Jul-17
Inspections - March, Sept Module
each year 2 Set up works tickets for cyclic Council to approve Staff $2 Nov-16
inspection to occur each year budget

3 Bridges asset assessment every 4 yrs. Man Infas Assetic $45 4yrs.
- structural & condition
4
Investigate options with Medium 1 Investigate seek options with costs Man Oper Man Oper $40 Feb-17
solar back up
2 FY2017-18 Place budget bid forward Council to approve Man Infras $40 Jul-17
to council budget

3
4
Prioritised in Councils Low 1 FY2019-20 Design Council to approve Man Infras $35 Jun-20
Stormwater AM Plan / budget
CWP

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2 FY2020-21 Construction Council to approve Man Infras $350 Jun-21

budget

3
4
Low 1
2
3
4
Prioritised in Councils Low 1 Each financial year - Design Council to approve Budget Bid Officer >$40 June
Stormwater AM Plan / budget
CWP
2 Each financial year - Construction Council to approve Budget Bid Officer >$400 June
budget

3
4
Low 1
2
3
4
Low 1
2
3
4
Prioritised in Councils Low 1 FY2016-17 Design Review Man Infras $20 Jun-17
Stormwater AM Plan / 2 FY2019-20 Construction Council to approve Staff $1,560 Jun-20
CWP budget

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4
Prioritised in Councils Low 1 FY2015-16 Design Completed Man Infras
Stormwater AM Plan / 2 FY2018-19 Construction Council to approve Outsource $1,300 Jun-19
CWP budget

3
4
Prioritised in Councils Low 1 FY2015-16 Design Completed Man Infras Staff $40 Jun-15
Stormwater AM Plan / 2 FY2016-17 Construction - Stage 1 of 2 Council to approve Staff $335 Jun-17
CWP budget

3 FY2017-18 Construction - Stage 2 of 2 Council to approve Staff $600 Jun-18

budget

4
Cyclic programmed Low 1 FY2016-17 - Maintenance Urban Council to approve Staff $77 Jun-17
maintenance works by Stormwater Budget budget
field staff
2

3
4
Water quality monitoring Low 1 Annual water quality monitoring as Council to approve Staff $20 Annual
as per Encounter Lakes per Encounter Lakes Management budget Occurrence
Management Plan Plan
2

3
4

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8. MONITORING AND REVIEW

Monitoring and review is an essential and integral step in the process of managing risk. It is necessary to
monitor risks, the effectiveness of any plans, strategies and management systems that have been established
to control implementation of risk management actions.

The plan will be monitored and reviewed as follows.

Table 8: Monitoring and Review Program

Activity Review Process

Review of new risks and changes to
existing risks
Review of Risk Management Plan
Performance review of Risk Treatment
Plan
Review by team with stakeholders and report to council
3 yearly review and re-write by team and report to council
Action plan tasks incorporated in council staff performance
criteria with 6 monthly performance review.
Action plan tasks for other organisations reviewed at annual
team 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 Engineering
Australasia, 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

City of Victor Harbor – Stormwater Infrastructure Risk Management Plan