2.2 Risk Management

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Version 6.1 January 2024 Risk Management 2.2
2.2 Risk Management 2 of 14 Version 6.1 January 2024 2 . 2 Risk Management Contents Preamble ............................................................................................................................. 3 2.2.1 Identifying Risks 3 2.2.2 Risk Management 4 2.2.3 Risk Management System ...................................................................................... 4 Types of Risk 5 Financial Risks 5 Operational Risks ............................................................................................................. 7 Hot Water Safety 8 Procedure 9 Summary ............................................................................................................................. 9 Supporting Documents 10 Policies 10 Forms ............................................................................................................................. 10 Information 10 NGO Training 10 Legislation ...................................................................................................................... 10 NDIS Practice Standards and Quality Indicators 11 2.2 Risk Management 11 Human Services Quality Standards ................................................................................... 12 1 Governance and Management 12 Delegation of Authority 12 Version Details ................................................................................................................... 13

Preamble

BigDog Support Services Pty Ltd (BigDog) effectively identifies any risks to clients, workers as well as to BigDog, and ensures that these risks are managed accordingly.

2.2.1 Identifying Risks

BigDog believes that risk should be managed and monitored on a continuous basis. BigDog has designed a framework to allow it to achieve its business objectives whilst assisting management and ideally, providing early warnings of risks.

Key components which bring together a number of procedures and controls within BigDog are as follows:

Identification and assessment of all risks

Monitoring and wherever possible, mitigation, of identified risks

Periodic reporting

Assessment of effectiveness of risk management framework

Ways to identify risk

These methods assist BigDog to identify risks that are relevant to our business:

Thoroughly review our business plan and ask as many 'what if?' questions as we can.

Brainstorm with our accountant, financial adviser, worker and other interested parties. Get as many different perspectives as you can.

Analyse a wide range of possible future events and their outcomes (scenario analysis).

Analyse economic, political, legislative and operating scenarios.

Use flow charts, checklists and inspections to break down and analyse our work procedures (systems analysis).

For any method, always ask these questions:

When, where, why, and how are risks likely to occur in our business?

Are the risks internal, external or random?

Who might be involved or affected if this occurs?

Once we've identified risks, we'll need to analyse their likelihood and consequences and then come up with options for managing them.

Risk Identification Mistakes

The failure to recognise risks early when it is less expensive to address

Not identifying risks in an iterative fashion

Risks are not identified with appropriate stakeholders

Not using a combination of risk identification techniques

Risks are not captured in one location

The failure to make the risks visible and easily accessible

Risks are not captured in a consistent format

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Each coordinator is responsible for the continual identification and subsequent reporting by all workers of risks within their specific division.

Risks across all BigDog operations will be centrally collated and assessed by the Directors and the nominated coordinator

2.2.2 Risk Management

Risks which have been identified and assessed should be continually, but as a minimum periodically, reviewed by the Directors, with the assistance of the relevant coordinator.

To the extent possible, steps should be taken to mitigate identified risks or lessen any exposure to BigDog and appropriate precautions for reoccurrence be communicated across the appropriate business divisions.

In accordance with our Charter, the Directors are responsible for, among other things, ensuring that effective risk management programs are in place to protect BigDog assets and shareholder value.

BigDog’s risk framework should promote a robust structure so that all risks are appropriately identified, assessed, monitored and mitigated wherever possible, across all business divisions. Assessment of all aspects of BigDog risk framework (including the comprehension of all ‘material’ business risks) by the Directors should take place on an annual basis.

In addition, the Directors and Coordinators should promote a culture of voluntary and transparent risk reporting and ongoing, regular risk assessment throughout all levels of BigDog.

2.2.3 Risk Management System

BigDog links support delivery to a risk management system which includes incident management, complaints management, work health and safety, human resource management, financial management, information management and governance.

the level of risks

our planned strategy

A risk management plan details our strategy for treating risks. It details information about: identified risks

the time frame for implementing our strategy the resources required the individuals responsible for ensuring the strategy is implemented.

The business environment is constantly changing. The type of risks BigDog will face will change as our business develops and grows. Regularly reviewing our risk management plan is therefore essential for identifying new risks and monitoring the effectiveness of our risk treatment strategies.

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Types of Risk

There are many different types of risk. The Australian standard (AS ISO 31000:2018, Risk management) defines risk as 'effect of uncertainty on objectives'. The types of risk you face will therefore be specific to your business and its objectives but will generally relate to the following areas.

Financial Risks

These risks include both external risks, such as changes in interest rates or commodity prices, and internal risks such as cash flow shortages, customers defaulting on payments, depreciation of assets, retail lease and contract disputes.

Financial Delegations

Financial delegations are to be exercised in accordance with the Financial Management Standard 1997, the Financial Administration and Audit Act 1977 (QLD) and associated audit requirements and the Corporations Act 2001 (Cwth)

As part of the risk framework, BigDog processes include: financial delegations, differentiating between budgeted and non-budgeted items and between capital and operational expenditure, across various managerial levels, procedures for approving amounts within and under delegation and procedures for reporting to the Directors those amounts approved under delegation

Planning

In order to reduce risks to the sustainability of the organisation, the following planning is carried out which includes risk management aspects:

strategic planning

business planning

cash flow and budgetary forecasting

Taxation

BigDog processes include procedures to ensure that the Company is compliant with the relevant taxation legislation and ASIC requirements through the Company Accountant, Joel Canning.

Financial and Banking

BigDog processes include procedures to monitor, analyse and assess the impact of interest rates any other key economic metric on BigDog business. The Commonwealth Bank provides a Business Banking Executive to recommend best finance options.

Insurance

BigDog engages the services of an Insurance Broker to:

Manage our insurances portfolio

Manage insurance renewals and

Advise and recommend the introduction of new or recommended insurances

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Asset Management

BigDog is committed to the responsible management of business assets and to being accountable for the assets purchased by:

Ensuring that assets are purchased with careful consideration and at the best possible price

Maintaining an asset register that tracks the value and location of assets

Ensuring cyclical maintenance of relevant assets

Ensuring appropriate insurance cover is maintained for assets

Property management and rentals

BigDog engages the services of a registered Real Estate Agent or Agents for:

1. Residential Tenancy Agreements

a. Term of the agreement

b. Complete agreement in accordance with the Act

c. Rent amounts and methods for payment

d. Responsibility for payment of utilities

e. Special Terms

2. Bond Application

3. Building Inspection

a. Entry reports

b. Exit reports

4. Maintenance and repairs

a. Managing reports

b. Organising quotes

c. Submitting for directors’ approval

Continuation of Operations

BigDog is committed to the continuation of the operation of the company and engages the services of a Lawyer to prepare and manage:

Power of Attorney

Enduring Power of Attorney

Directors’ Wills

Share allocation

Discretionary Testamentary Trust

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Operational Risks

These risks cover a range of environmental, human, systems and procedural impacts such as illness or retirement of key worker, equipment breakdown, pandemic, natural disasters, and software failures.

Workplace

As part of the risk framework, the Directors reviews BigDog Work Health and Safety obligations so that BigDog can provide a working environment that is safe and without risks to health.

Quality Assurance

As part of the risk framework, BigDog processes include procedures to report on compliance with Quality Assurance standards. Procedures include identifying and reporting on Quality issues identified and establishing processes to reduce the risk of the Quality issue.

Personnel

As part of the risk framework, the Directors has approved an overarching remuneration philosophy, the design of which ensures that the level and composition of remuneration is competitive, reasonable and appropriate for the Company’s results delivered and to attract and maintain talented and motivated managers and workers.

Legal

These risks include contractual breaches and non-compliance with regulations such as changes to work health and safety standards.

Legal matters are immediately referred to the Directors who will, in consultation with the Company Solicitor work to ensure that applicable codes of conduct are followed along with legal compliance as well as managing Enduring Powers of Attorney and Director’s wills.

Privacy and Information

These risks relate to non-compliance with state and national privacy laws on recording, storing and disposing of customer information.

Incident and complaints management

Results to assist with service delivery improvements through continuous improvement.

Strategic

These risks relate to your business strategies such as changes in customer demand, increased competition, adopting new technology and pursuing new business opportunities. As part of the risk framework, BigDog processes include procedures to monitor, analyse and assess the impact of, and wherever applicable, prevent or challenge:

Industry trends and market changes, Changes in the labour markets,

A loss of a key contract or several contracts, A negative impact of reputation and Increased competition.

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Hot Water Safety

Very hot liquids or steam can cause a type of burn called a scald.

Scalding is the second highest cause of burns apart from fire and is a preventable injury that can lead to scarring, painful treatment, infection and death.

More than 90% of scalding occurs in the bathroom from showers or baths that are too hot.

The risk of scalding is greater for people who may have a reduced reaction time and/or thinner skin thickness. This includes:

People with cognitive or physical disabilities including dementia

People with peripheral neuropathy

People with epilepsy

People with a sensory impairment

Young children

Older people or those with reduced mobility

Because of the risks of hot water to worker and clients, the Australian Standards now have regulations for new hot water installations in facilities where people with disability receive services. The maximum recommended water temperature at fixtures used primarily for personal hygiene purposes is 45°C which is the maximum temperature before scalding becomes a serious risk to worker and clients

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Procedure

Managing Financial Risks

The Accounts Officer will provide to the Directors the following documents: Profit and Loss statements for the previous month, Cash Flow forecast for the coming three months, Budget items compared with actual Year to Date figures, Delegated expenditure which was approved across the organisation.

Annually each January, the Administration Officer in conjunction with the directors will prepare and approve the annual budget.

Managing Organisational Risks

The Administration Officer is responsible for the maintenance of the appropriate records for the following:

Payroll

Drivers’ licences, suitability cards and first aid/CPR for workers and volunteers, Worker Training and Development

Details of all commercial contracts entered into by BigDog including but not limited to leases, rentals and hire purchases agreements.

Managing Rental and Property Risks

The nominated Real Estate Agent(s) will provide to the Directors the following documents:

Details of property and tenants

Rental and expenditure statements

Outstanding rent and details of efforts to bring any outstanding amounts up to date

House inspection reports

Managing Hot Water Risks

The Workplace Health and Safety Officer will undertake the following:

That any new heated water installations use a thermostatic mixing valve or thermostatically controlled tap to deliver hot water not exceeding 45ºC at fixtures used primarily for personal hygiene purposes (Australian Standards 2018, AS3500.4.1.11)

Engage a licenced plumber to test and maintain any temperature control devices at least on a yearly basis (ABCB 2015)

Summary

Risk management is a process that allows individual risk events and overall risk to be understood and managed proactively, optimising success by minimising threats and maximising opportunities.

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Human Services Quality Framework October 2021 Version 8

NDIS Practice Alerts

NDIS Practice Standards November 2021 Version 4

Risk Management Guidelines (Standards Australia AS ISO 31000:2018)

NGO Training

Management of Medication

Keeping safe at work

NDIS Employee Health Check

NDIS Manager Health Check

Problem Solving

Self-Care for Disability Support Professionals

Transitions of Care

Legislation

Child Protection Reform and other Legislation Act 2022 (QLD)

Corporations Act 2001 (Cwth)

Corporations (Queensland) Act 1990

Disability Services and Inclusion Act 2023 (Cwth)

Disability Services Act 2006 (QLD)

Financial Administration and Audit Act 1977 (QLD)

National Disability Insurance Scheme Act 2013 (Cwth)

NDIS (Provider Registration and Practice Standards) Amendment Rules 2021

Residential Tenancies and Rooming Accommodation Act 2008 (QLD)

Safe Work Australia Act 2008 (Cwth)

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2.0 Provider Governance and Quality Indicators 2.1.2 Replaceable Rules 2.1.4 Strategic and Business Planning 2.1.5 Continuous Improvement 2.2.3 Manage Expenditure Forms 2.2.2 Business Continuity Plan PATH
Supporting Documents Policies
Plan SWOT analysis Information

NDIS Practice Standards and Quality Indicators

BigDog Support Services Pty Ltd (BigDog) is a registered NDIS provider and is required to apply the scheme’s practice standard and quality indicators.

The standards have been developed to create an important benchmark to assess provider performance and ensure that high quality and safe supports and services are provided to NDIS participants.

The four core modules are:

1.0 Rights and Responsibilities;

2.0 Governance and Operational Management;

3.0 The Provision of Supports; and

4.0 The Support Provision Environment.

The supplementary modules cover:

5.0 Specialist Support

5.1 High intensity daily personal activities.

5.3 Implementing behaviour support plans.

2.2 Risk Management

Risks to participants, workers and the provider are identified and managed.

2.2.1 Risks to the organisation, including risks to participants, financial and work health and safety risks, and risks associated with provision of supports are identified, analysed, prioritised and treated.

2.2.2 A documented system that effectively manages identified risks is in place and is relevant and proportionate to the size and scale of the provider and the scope and complexity of supports provided.

2.2.3 Support delivery is linked to a risk management system which includes:

• Incident Management;

• Complaints Management;

• Work Health and Safety;

• Human Resource Management;

• Financial Management;

• Information Management; and

• Governance

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Human Services Quality Standards

The Human Services Quality Standards set a benchmark for the quality of service provision. Each Standard is supported by a set of performance indicators which outline what an organisation is required to demonstrate to meet that standard.

1 Governance and Management

Sound governance and management systems that maximise outcomes for stakeholders.

1.4 BigDog management systems are clearly defined, documented and monitored and (where appropriate) communicated including finance, assets and risk.

1.5 Mechanisms for continuous improvement are demonstrated in BigDog management and service delivery processes.

Delegation of Authority

Name Position Details

Steven Paull Director

Courtney Carroll Director

David Burrett Operations Manager

Monique Paull HR Lawyer

Joel Canning Accountant

Authorise review and implementation

Authorise review and implementation

Ensure information dissemination

Ensure compliance by workers

Taxation compliance

Aaron Keneally Insurance Broker Insurance Management

Danny Clifford Lawyer HR Law

Lindsay Brown Lawyer

Company Constitution

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Version Details

This policy will be reviewed every twelve (12) months unless circumstances deem it necessary to review earlier. The review process will involve an analysis of the usefulness of the policy and to note any changes which are required to improve the policy. If minor changes are made in wording or to clarify the intent, the version number will indicate this by adding a ‘point’ i.e. Version 1.0 indicates the original version and 1.1 with the first round of minor changes made. A significant change or intent of the policy will be indicated by a whole new number i.e. Version 2.0.

The following rules also apply in interpreting this policy:

• Headings are for convenience only and do not affect interpretation.

• A singular word includes the plural and vice versa.

• A word that suggests one gender includes the other genders. Date

October 2013 1.0 Policy written to match HSQS Standard 1 Governance and Management

January 2014 1.1 Ratified by Community Committee

February 2015

1.2

June 2015 2.0

July 2016

February 2017

Updated term ‘Client’ to NDIS term ‘Participant’

‘Forms’ heading to ‘Documents’ as read only items

Created a single HSQF Standard Policy

Included imagery of forms and information sheets

2.1 Updated supporting policies to procedures

3.0

Created an all-inclusive HSQF Policy to address each of the service standards indicators.

Returned supporting procedures to supporting policies

Updated Responsible Officers

January 2019

January 2020

4.0

Updated to new logo and style guide

5.0 Removed HSQF Standards Indicators and Policy matched with NDIS Practice Standards and Quality Indicators

Front cover updated to Standards colour identification

Supporting Policies updated

January 2021

5.1

Updated Responsible Officers details

Changed ‘the director’ to ‘the directors’

Introduction of BigDog Training Portal and modules

Change of business name for insurance broker

February 2022

5.2

Updated officers, training modules and practice alerts

Included Hot Water Safety

Included 2.2.3 Manage Expenditure policy

NDIS Practice Standards

November 2021 Version 4

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V Details
2.2 Risk Management 14 of 14 Version 6.1 January 2024 Date V Details January 2023 6.0 Included Human Services
and Child
January 2024 6.1 Disability Services Act 1986
Services
Inclusion
included.
Quality Standards and Child Protection Act and the term “Participant” is returned to “Client” to allow for policies to cover NDIS
Safety.
replaced with Disability
and
Act 2023 and policy review process

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