|Volume 1 - Resource Management
Chapter 17 - Compliance Monitoring and Auditing
Policy 17.1 - Risk Assessment for Operational Activities
Effective Date: 23-Oct-96
This policy applies to the assessment and documentation of risk associated with operational activities.
In recognizing that all operational activities have inherent risk associated with them, the risks should be assessed consistently for each operational activity that the Ministry is responsible for inspecting.
For the purposes of this policy:
"operational activities" excludes planning activities, but includes field activities, fire prevention activities, revenue activities, and tenure administration.
It is Ministry policy that:
A consistent process should be used for evaluating and documenting risk associated with all operational activities, and for allocating Ministry resources in accordance with the identified risk. Allocation of inspection resources should generally be directed at those activities with the highest risk.
The risk assessment process will:
Risk assessment is an ongoing dynamic process. Risk is not static; it can and will change. Risk should initially be assessed as early as practical, prior to the inspection process, and should be continually validated and re-assessed through the process. The plan approval process also identifies or addresses some of the operational risks.
Risk is determined as the product of the likelihood (or probability) ofa detrimental event occurring and the magnitude of the environmental, social, or economic consequence should that event occur.
Risk assessment procedures contain more specific factors for identification and determination of the likelihood of detrimental events and magnitude of consequences associated with operational activities. In addition to these factors, the procedures contain methods for calculating overall risk.
Risk is defined as:
Likelihood and the magnitude of consequence have three levels: high, moderate, and low. The product (risk) may be very high, high, moderate, or low.
Risk should be documented at initial assessment and throughout the inspection process.
Recording of risk calculation provides the rationale for inspection priorities and resource allocation decisions. Risk levels will be incorporated into supporting computer systems where available.
The District Manager, Regional Manager, or Assistant Deputy Minister, Operations, is responsible for the assessment and documentation of risk for determination of priorities for inspections for which they are accountable.