Planning a risk audit

A Risk Audit is a process by which an attempt is made to identify, verify, record, measure, analyse and report the range of risks that may be present in a given situation. This given situation could be as simple as a 2 hour event (e.g. a sport event) or as complex as all the risks faced by an organisation in all its programs and activities over the course of a year.

The key aspect of a risk audit is to identify risks. Unless risks are identified, people may be completely unaware that a risk exists. The risk audit process goes further, however, and enables persons with responsibility to consider and evaluate risks.

The principal components of an effective risk audit process are:

Planning

Setting the scope of the risk audit i.e. what is the situation to be audited?
Determining the method for gathering information (interview staff, make observations using a checklist, etc)
Developing checklists and procedures for the auditing process to ensure the process is thorough
Developing interview questions, as interviewing people is a key aspect of risk auditing
Arranging site visit(s) and interviews

Risk Auditing On Site

Briefing organisation personnel to be involved in the audit process
Conducting site visit and utilising checklists and procedures to observe risk controls in place, or not in place
Conducting interviews with organisation personnel and probing for knowledge of risk management procedures
Checking existence of policy and procedures which may have an effect on risk managment
Reviewing accident and injury logs
Summarising main findings
Providing organisation personnel with an exit interview

After the Risk Audit

Analysing information gathered as a result of the use of checking procedures
Analysing information gathered as a result of interviews
Preparing a register of risks and evaluating probability and severity of each identified risk
Preparing a report (draft) on risks identified and suggesting strategies for dealing with risks
Providing a report and feedback to organsiation
Arranging for a meeting to continue next step in the process