There has been a great deal of risky decision-making going on globally this week.
Have you ever pondered what making a decision really means - and the consequences of that decision if the risks aren’t managed?
I attended a quarterly Audit, Risk and Improvement Committee (ARIC) meeting during the week, and the discussion around risk management made me sit up and listen - not because the meeting involved any heated moments, but because it reaffirmed that everything we do comes with inherent risk.
This is just a small reflection on my interpretation of risk management in light of my role as a Hilltops Councillor.
Risk appetite is the amount of risk we are willing to accept or retain in order to achieve our objectives.
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Determining and articulating our risk appetite helps us make better choices by considering risk more effectively in decision-making.
While a risk assessment enables Council to understand its risk exposure, it is risk appetite that defines just how much risk we are prepared to accept.
By comparing risk appetite and exposure, we can assess whether we are maintaining the right level of risk and appropriately balancing threats with opportunities.
This is known as risk tolerance, which represents the practical application of risk appetite - mainly aligned with factors such as strategy, finances, people, and reputation.
With this understanding of how much risk we are willing to accept, we can make informed choices about taking on new programs, improving efficiency, and reducing delays in decisionmaking.
It also allows us to better identify opportunities for further risk-taking or areas where unacceptable risks might emerge.
Risk tolerance informs expectations for mitigating, accepting, or pursuing specific types of risk.
It identifies boundaries and thresholds of acceptable risk-taking, as well as the actions to be taken - or consequences faced – if those thresholds are exceeded.
We are very fortunate to have specialised staff at Hilltops Council who are continuing to develop a Risk Management Framework and Risk Management Policy in accordance with the Office of Local Government Guidelines.
These efforts will support Council in making the right decisions for our community in a systematic way that enhances operational effectiveness.
In a freshly released budget update, successful State funding has been secured for the Boorowa Preschool, however critical infrastructure projects that remain unfunded include the William Bradford Bridge, the Boorowa Pipeline, and the Young Police Station.
"There are risks and costs in action. But they are far less than the long-range risks of comfortable inaction" – J.F. Kennedy
Councillor Joanne Mackay
