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Department of Premier and Cabinet

How can councils manage risks?

Risk management involves establishing an appropriate framework and culture, and applying a logical and systematic method to identify and manage risks by:

  • implementing and communicating an organisational policy;
  • balancing risk and opportunity within organisational policies;
  • defining the organisation’s risk appetite, tolerance and likelihood guidelines;
  • training elected members and council officers to establish the context for assessing potential risks; and
  • identifying, analysing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will maximise the potential to achieve goals and objectives and minimise potential for harm or loss.

Your council has a legal and ethical responsibility to ratepayers, residents, employees and visitors to minimise the likelihood and consequences of adverse risks and maximise the potential to achieve its strategic objectives.

All elected members, management, council officers, contractors, and volunteers have a responsibility to follow effective risk management practices and ensure that the council is aware of risks associated with its operations. Risk management should be an integral part of the leadership responsibilities of the council, the general manager and senior management.