Risk capital is funds invested speculatively in a business, typically a startup . John: Yes. This slide lists some of the audits that were considered as inputs into that funnel of inputs. Phone: 1300 00 WORK (9675) Kim: Perfect. It can be pretty costly if youre not. It gathers your risks and controls together, removing duplicated data and effort. Risk management is critical to effectively managing your organisation but takes time and commitment to get it right. A critical control is so essential to the risk mitigation, that without it the residual risk would be higher than the level of risk tolerance. But yeah I knowits really a case of how the company is deciding to allocate those resources based on its risk appetite and tolerance. You can also see the consequence readings for multiple receptors on the right. We identify the critical controls that either prevent or mitigate the consequences of material unwanted events. What we think is happening in practice is actually happening. Thank you, Kim. Manager Critical Control Verifications also allow the proactive scheduling of the key aspects of each critical control. The framework element dealing with legal and other commitments; The element dealing with risk identification and management; and. These five steps are: Step 1. It can be tempting to believe that a control is effective, despite having no evidence. Our Control Based Risk Management Framework can help you to do this effectively and relatively quickly. Forwood can accommodate more languages as required by the client. It brings a number of critical security controls to a "plain English" level that hopefully less sophisticated organizations can use as guidance for building their security controls. So yes, you need a good business process for capital allocation that takes the incident data and the data from your risk registries and controls and makes it transparent, so that you get a better outcome in the squeaky wheels and getting the grease or, you know, the [44:41] at the moment isnt getting the resource. Most companies I think in the future will in fact have an integrated system. It is a systematic, cyclical, and repeatable. You should be capturing, you know, what is the risk being addressed, where is it located, who owns it, what is the inherent risk rating, what are the existing control treatments, a description of the control type, what is the residual risk rating and then the termination of acceptance or plan of action to add more controls. Is the control crucial to preventing the event or minimizing the consequences of the event? Graduated license. In almost serious incidents, you have multiple causes with multiple layers of protection having failures, you know, all lining up under some unusual circumstances or operating condition and that usually involves some sort of failure of the process design or a protection system and alarm system operating within the safe limits that fail your safety instrument systems failed, something in your procedures failed or perhaps the procedure was adequate, but staff didnt follow it or perhaps the procedure was wrong, you had a failure in your management system, your safety culture failed, alertnessall these things have to line up and something, this is basically called the Swiss Cheese Model. And the inherent risk without controls is high both in terms of likelihood and consequence. Forwood provides an online and offline app, giving capability to perform verifications in-field. Or the organization that I work for Suncor that lost hundreds of millions of dollars a few years ago in shutting production because it actually failed to install a piece of pollution prevention equipment, that instead it worked in a [10:56] application. Step 1: Build a Strong Risk Culture. Obeying the speed limit. We identify the critical controls that either prevent or mitigate the consequences of material unwanted events. They proactively look for risk and invest in the controls to manage those risks and maximize their opportunities. So if you answered yes to most of those questions, then that helps determine whether the control is critical. So for instance, you might add machine guards, interlocks or barriers, safety instrument systems. Testing the system thoroughly and then performing ruthless configuration management to maintain the security are essential. So I hope theres no one from BP on the line. And there are again many templates available to capture your data, but I have a minimum. They understand their business and operations processes and have the right metrics to drive and reward the right behaviors and they have simple, up-to-date procedures that they actually follow. Group Bookings: For Group Bookings, please contact us via email on events@rmia.org.au or by phone on 02 9095 2500. So thank you, John for that incredibly informative session on Risk Management. In the really really really high performing companies its a collaborative process. Framework Model. What we think is happening in practice is actually happening. For more information on this presentation, on risk management or on other issues, simply reach out to us at info@nimonik.com. This approach focuses on those risk controls considered criticalto preventing unwanted risk events and mitigating their consequences if they do occur. Now the challenge in that is you dont always get the buy-in from the risk and control owners at the beginning. Forwoods Critical Risk Management is delivered as a Software as a Service (SaaS), and has been designed and built to provide a laser focus on fatality prevention in the workplace. So I would say in the best companies it is very much a collaborative process. Thomas Humphreys Prevalent Compliance Expert March 17, 2022 The RIMS-CRMP prepares you for senior financial, operational, and risk management roles. Identify their critical risks and controls, Verify the effectiveness of those critical controls, Build internal capability for ongoing monitoring activity and provide external assurance of control effectiveness. Ben Maxson, Good morning or good afternoon, everyone. So in summary, all of our programs have limited resources and you deminimize their impact on operations. 2) An undesirable event, which brings out the hazard. I think you touched upon it earlier a bit, but we have another question about capital allocation. At Suncor we had one, I think it had about 60 data fields that you could turn off and hide and come down to about 10 or expand depending on the level of sophistication that you wanted and it went right down to individual [22:45], it went right down to individual controls based on a higher [22:52] controls from engineering down to PPE, and it also went all the way to future residual risk. All rights reserved |, To check off that the Critical Controls. Well, all organizations should operate at a minimum in regulatory compliance. And therefore into the audit planning process because again not all regulations are created equal and you want to audit those with the highest potential consequences to your company if youre deemed to be out of compliance. A risk management or full cybersecurity program: . A brief overview of the most common modules is detailed below: The Verifications Module is inclusive of Manager Critical Control Verification Checklists; Supervisor Checklists and Operator Checklists. I had the pleasure of attending the SANS SEC566 class in early December 2016, which focuses on the Critical Security Controls. And you know, for our hazardous operations we did, the corporate team did deep dive service three years, but again it wouldnt be all 18 ones, it wouldnt be all 700 [49:48] process safety requirements, it would be focused to dive on critical controls, critical elements with the organizations own self-assessments should happen annually, were indicating weakness or we want to follow up on effectiveness of mitigating measures that they put in place. Brittany Corsini, Consultant:Brittany has had a strong involvement in the communication and implementation of the Critical Control Approach throughout her time at Noetic. v8 Resources and Tools. So we would use the lens of the OEMS. These are completely . ISO 27002, etc.) So Nimonik is a software service that provides EHS managers with the tools necessary to ensure environmental, health, safety and quality compliance in their operations. But most recently he was Senior Director of Operations Integrity Audit and Risk for Suncor Global Operations and finally he is a co-founder of Conformance Check which was recently acquired by Nimonik. So its interesting if you look at some of these incidents and the critical control failures. So attendees, please drop down any last minute questions you may have and then Ill proceed to share these with John. Auditors are one tool to do that and certainly you dont have to do it every year. It is an important process in most organisations and critical for the effectiveness of risk management and control assurance. This webinar will provide a Critical Control Management (CCM) introduction and Material Unwanted Events (MUE) with high potential consequences. It often drives you in other directions to look at risk and governance activity. Risk Management Plan (RMP) A Risk Management Plan is a written document that outlines the risk management process for a particular medical device. Noetic Group Contact:If you have any questions, please emailrisktraining@noeticgroup.com. So one of the inputs was incident investigations and key performance indicator analysis following up on specific incidents and trends both within our company and the industry, looking at causal analysis in determining what critical controls had failed and where were those companies in use across the operation in the company. Key aspects of Risk Management: -Enhancing Mission accomplishment. associated with them. Monitoring is an integral part of the 'monitor and review' stage of the risk management process. Perfect. We have another question here for you, John. Test, Test, Test. This usually involves generating evidence in the form of records or reporting a performance. John: Yeah. Those VPs I dont think had a risk registry or process safety risk and controls in each of these different categories that might have driven them to ask the right questions. Controls must be established in order to determine what is to be protected, why it should be protected, how it should be protected, and how to measure how effective the protection is. Kim: Perfect. "The Managing Critical Controls course was an enjoyable and concise course which provided the fundamentals for identifying and understanding critical controls, as well as providing guidance on how to structure assurance activities. And on the right hand side of the page, the recovery preparedness controls and potential consequences. In the aftermath of the Montara blowout (Australias worst oil spill) he led a team that oversaw implementation of the findings of the Commission of Inquiry. Critical control management is an integral part of risk management that focuses on identifying and managing the controls that are critical to preventing these catastrophic or fatal events. So loss of a certification is something very simple. of any risk management model requires that tools are used in concert with the quality risk management process. For example, a hazardous present on the ground is covered with ice. A systematic approach used to identify, evaluate, and reduce or eliminate the possibility of an unfavorable deviation from the expected outcome of medical treatment and thus prevent the injury of patients as a result of negligence and the loss of financial assets . And if they had, perhaps those controls might have been audited and disaster reverted. The slide that Ive used in this webinar illustrates the framework developed by the ISO to establish a risk policy with standard and the supporting procedures, appropriate roles and responsibilities, training and monitoring program to support that business process. It is a critical document in MDR (Medical Device Reporting) documentation as per 21 CFR Part 803 to obtain CE (European Conformity) marking for medical devices, indicating that the medical device manufacturing process, procedures, and practices meet . Kim: Great. He outlines the value of an ISO conforming integrated HSEQ (Health, Safety, Environment and Quality) management system framework and provides a high level look at three elements in particular : Special emphasis is placed on looking at the interaction between these elements, especially in the identification of high consequence regulations, level 1 risks and critical controls as inputs to a risk based auditing program. In these two powerful case studies, Alcoa Corporation, recognized as the inventor of aluminum, demonstrates how leveraging Forwood's solutions CRM and FAST Reporting has enabled the industry leader to more effectively pursue their goal of zero fatalities. The 18 CIS Critical Security Controls Formerly the SANS Critical Security Controls (SANS Top 20) these are now officially called the CIS Critical Security Controls (CIS Controls). Take the first step in transforming your business safety culture and speak with one of our solutions experts today. These commitments are usually [08:24] some form of legal registry. A more visual way to look at risk is to consider these controls or risk treatment measures as layers of protection. These tools provide each worker with the ability to understand if the task they are about to complete is a Critical Risk, and if so, assist them to identify that the correct Critical Controls are in place prior to commencing the task. He managed the ISO committees that developed the ISO 9000 and ISO 14000 standards. I was very lucky that Ive actually reported straight to the Suncor Org. To help you determine those inherent and residual risks after control treatments most people, most organizations employees deploy a risk matrix. There can be a tendency for optimism bias when trying to assessthe level of risk and the effectiveness of controls. Knowing which activities in your business have the biggest potential to harm your people and more importantly, understanding if these risks are well controlled is pivotal to creating a safer workplace. The following additional features are available on request: Forwood gave us the language of how to describe risk, how to address verifications, and enhance controls. This particular slide shows one that Suncor used a number of years ago. For example, the electronic industry moving from using hazardous solvents to clear a circuit board to a water-based cleaning system. Essentially risk management is the combination of 3 steps: risk evaluation, emission and exposure control, risk monitoring. These scenarios place the risk somewhere in the upper right quadrant as an unacceptable level one risk. Join us to explore an approach that helps ensure your leaders have the right risk information they need to make good decisions. You will be provided with additional templates and tools to assist you in applying the critical control approach. How do you get buy-in and data quality? The purpose of any work done on critical risks is to identify and verify the critical controls, so you can be sure that your big risks are being managed effectively. Confirm new and existing key risk areas Privacy. In the mining sector, for example, our critical controls might look something . HSE Global consultants can facilitate bowtie risk control analysis workshops drawing down on input from your relevant subject matter experts (those that do the job). Or you might change your process. 15 Critical NIST 800-53 Controls for Supply Chain Risk Management Sorting through thousands of NIST security controls can be time-consuming. Kim: We have another question here. Our Control Based Risk Management Framework can help you to do this effectively and relatively quickly. But before I do, I just wanted to quickly point out that Nimonik would love to be part of your efforts to improve your regulatory compliance. The BP spill provides a great example of the Swiss Cheese Model of critical control failures. Talk to us about integrating our client support services into your help desk. The critical control management approach requires: Clarity on which controls really matter (ie critical controls). Program Overview Learning Objectives TARGET AUDIENCE REQUIREMENTS LEARNING METHOD So attendees, please drop down any last questions that you have. And its a great way for risk and control owners to communicate that information as training or communicate it to their management teams since theyre looking for additional resources. Or you could choose to move, to adjusting time inventory and cut back on the storage of hazardous toxic or explosive materials. Action Plans are raised from Manager Critical Control Verifications to ensure any improvements of critical controls are recorded and closed out. Those with hazardous processes audited on a 3-year frequency and lower risk operations audited in a 5-years frequency, reaching in the right of course to audit at a higher frequency based on their performance. ( Safe Work Australia) What is Critical Control Management? Wearing an approved DOT helmet while riding a motorcycle. Identify their critical risks and controls, Verify the effectiveness of those critical controls, Build internal capability for ongoing monitoring activity and provide external assurance of control effectiveness. In the middle you have the business activity and risk event being considered. What is a Critical Control The first requirement is if it is critical to the prevention of a major unwanted event (MUE) or minimising its consequences. When the risk culture is strong, everyone understands the organization's risk environment and adheres to risk management policies and practices to protect the organization. Those things led into our topper of things that we would propose to look at. It prioritizes risks based on severity and likelihood, which means controls are also prioritized. But the ones that were going to look at todaysorry, nothing like 100 requirements. Risk management is extremely important in achieving overall organizational goals and objectives. Critical controls are also covered in the HSE guidance on process safety. So now to present this topic to us today, we have John Wolfe, a Nimonik partner and owner of Management Horizons. Organizations implement cybersecurity risk management in order to ensure the most critical threats are handled in a timely manner. Key risk management concepts are also covered in this Certificate Program. Hard choices must be made when industries are facing downturns. The second line of defense is the management level above that risk and control owner, who need to validate that those frontline leaders have accepted the responsibility and that they as leaders have provided them the resources needed to close any incidents, audit findings or fund additional controls that are needed. Okay. Critical Risks and their critical controls are verified using simple checklists and tools. Kim: Perfect. Industry-leading CCM should provide the following outcomes: I selected something a little different from the traditional safety moment which might have addressed a teachable moment from one of your life saving or golden rules around safety, things like working with energy sources, slips, trips, falls, safe driving or confined space entry. If that flows logically then you have things right, if you have . Todays webinar will be on The Link Between Risk Management, Critical Controls and Auditing. It could be through observation programs, it could be through monitoring reports, maintenance, inspection programs, theres different key performance indicators, theres a host of ways that people demonstrate conformance, control conformance beyond doing audits. Conclusions. As again due diligence, just to say, you know, we couldnt do what we wanted to do because weve been downsized and the resources arent there, but heres still the way that were managing that risk that we recognized. It really contains the best thinking from around the world and you can always go beyond the requirements where it makes business sense. In fact I actually did a whole audit on the capital allocation process because it was not consistent across the company and what I was seeing in audits was year after year deferral of resource allocations associated with level one risks, which of course put the company into a deeper and deeper and deeper liability hole. Examples include: The Administration Module provides super users and site admins the ability to manage the Critical Risk Management system in real-time. A lengthy and complex risk register can even give the false impression that risks are being managed effectively, when that is not always the case. And its basically is the control performance specified observable manageable and auditable. Does it address multiple cases or mitigate multiple consequences of the hazard? Understanding your critical risks and verifying that critical controls are in place and working effectively are key due diligence obligations for Company Officers and are the foundations for keeping your people safe from serious harm incidents. Two other quotes Ive added in here that I thought were relevant to an operational excellent company. Weve all seen risk management practices that create a significant amount of documentation that doesnt help decision-making. All of them are pretty much built on the plan, do, check, act improved model that was developed by Deming back in the early 1980s and its now used by millions of companies around the world. Test the design and efficiency of the identified controls. The Forwood Critical Risk Management system (and supplied critical control questions) are recognized as a benchmark in industry. HSE Global can help you understand your risks from both a data analysis and people focused perspective and then determine what is critical and what is not from a risk and control perspective. But lets start with the safety moment. And then the third line of defense is the corporate audit team which I suspect most of the people on the line are. The ones that we look at today, that were going to be focusing in our regulatory compliance: Risk Identification, Assessment & Management and Audit. As a risk manager, do you change your risk appetite after a downturn when your audit program was significantly reduced? We want to help you focus on your business goals and objectives by using a safety lens to identify your 'critical few' hazards and ensure that your controls and processes are effective. And then how to utilize various insurance processes, such as audits and assessments to assure the efficacy of these controls. Through examples it shares practical applications implementing tools described by several of the recently enacted or updated standards and technical reports relevant and applicable to medical device risk management, (ISO/EN 14971:2012 with a 2019 update summary (little change in Risk Management process), what . Overview of the Basic Controls. Back in 2017 we identified ten critical risks within our . -Provide adaptivere process for continuous feedback. By taking these lessons learned from BPs unfortunate incident to our own offshore operations at Suncor, we drove audits looking at the efficacy of the controls in all our areas and Im sure every other offshore operator did. Is it required to audit all processes, say at least annually, and more frequent for level one? has been perhaps difficult to internalize and take action on. You need to ensure that your front lines operational leadership clearly identifies their hazards, their risks and associated controls and who owns them. I have a second question for you here. HSE Global can help you understand your risks from both a data analysis and people focused perspective and then determine what is critical and what is not from a risk and control perspective. But before we begin, Id like to briefly introduce Nimonik as a company, my role here and of course our presenter for today. Clients have access to the Forwood CRM Support Desk, which tracks all tickets. The online course delivers modules on a weekly basis. Your questions and comments are important to us. So again, in a due diligence world what were looking for is to make sure that you identify that risk and then you apply reasonable controls to manage it on an ongoing basis and that you know those controls are working. So lets get started. So this is a look at the 18 elements in the Suncor management system, essentially using a bow-tie and often when we look at the efficacy particularly, risk and control, we also do, as were doing an audit of their management system, we apply this particular lens. These controls are critical controls and, therefore, must be the subject of assurance. Building the risk inventories and registries looks like a lot of work. Understanding your critical risks and verifying that critical controls are in place and working effectively are key due diligence obligations for Company Officers and are the foundations for keeping your people safe from serious harm incidents. The next most effective controls are the engineering controls. And then we would look at our strategy and values to see where the company was driving itself and then of course prior audits and assessments so that we didnt duplicate effort. And with that in mind well tackle a few questions. Maybe just repeat the question. By defining unwanted events, identifying critical controls and verifying the effectiveness of those controls, organizations can be assured that: We can help you understand your risks from both a data driven, and people focused perspective and then determine what is critical and what is not both from a risk and control perspective. A whole series of preventive layers. Having worked with the ISO for many years, I highly recommend that you use ISO standards whenever possible. Part 6: Critical Control Management: 6: myosh presents The Digital . Using our extensive industry experience, we can help your teams: There is an unacceptable risk if the ice is at the entrance to a busy office with multiple steps and lots of people coming and going. And its your job as the auditor really to help them through that process and to audit those most critical controls and make sure in fact that that auditee has processes in place to ensure their efficacy on an ongoing basis. Our Control Based Risk Management Framework can help you to do this effectively and relatively quickly. Would you consider the lack of leadership risk knowledge as a real barrier when setting up CAPEX and OPEX budget? So usually its a collaborative process based on discussion of a kind of what keeps them awake at night and, you know, are they happy with the controls that theyve got in place to manage their most significant risks. Todays webinar will cover how leading companies utilize their risk management business processes to identify their biggest risks and associated critical controls. Nimonik inc. expands its presence in Western Canada with acquisition of MediaLogic Inc. EHS Compliance Software (Obligations & Actions), Food Processing, Handling and Manufacturing, Oil & Natural Gas Upstream and Downstream, The link between risk management critical controls and auditing. Now if you have hazardous operations and you have to layer in process safety requirements, then you can add another couple of hundred more requirements. Critical Control Management is supported by Lucidity through a process commencing with the identification of a set of Master Critical Controls, which are then allocated as controls to individual Risks within Project Risk Registers. So the element dealing with legal and other requirements easily outlines requirements to establish a business process to identify legal and other commitments.
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