9.3 Operational Risk

VERSION 1.0 – DECEMBER 2023

Purpose: To establish guidelines for identifying, assessing, and managing operational risks.

Scope: This procedure applies to all personnel involved in identifying, assessing, and managing operational risks within the Operations Centre.

1. Operational Risk Management Overview
   1.1 Operational risk management is the process of identifying, assessing, and managing risks that could affect the organisation’s operations, personnel, or resources.
   1.2 Personnel must understand the importance of operational risk management in maintaining a safe and effective operational environment.

2. Identifying Operational Risks
   2.1 Personnel must proactively identify potential operational risks associated with their roles and responsibilities.
   2.2 Risk identification methods may include reviewing historical data, conducting risk assessments, engaging in brainstorming sessions, and seeking input from relevant stakeholders.
   2.3 Identified risks must be documented and categorised based on their nature and potential impact on operations.

3. Assessing Operational Risks
   3.1 Identified operational risks must be assessed to determine their likelihood of occurrence and potential consequences.
   3.2 Risk assessment techniques, such as qualitative or quantitative analysis, must be used to evaluate the severity and probability of each identified risk.
   3.3 The assessment must consider factors such as the frequency of exposure, potential harm, and existing control measures.
   3.4 The results of the risk assessment must be documented, including the assigned risk levels and any recommended control measures.

4. Developing Risk Mitigation Strategies
   4.1 Personnel responsible for managing operational risks must develop appropriate risk mitigation strategies based on the identified risks and their assessed severity.
   4.2 Risk mitigation strategies may include implementing control measures, modifying processes or procedures, providing training or resources, or seeking external support or expertise.
   4.3 The feasibility, effectiveness, and cost-benefit analysis must be considered when selecting and prioritising risk mitigation strategies.
   4.4 The documented risk mitigation strategies must be communicated to relevant personnel and regularly reviewed for their adequacy and effectiveness.

5. Monitoring and Reviewing Risks
   5.1 Ongoing monitoring of identified risks must be conducted to ensure that control measures remain effective and new risks are identified in a timely manner.
   5.2 Regular reviews of the risk management process must be performed to identify areas for improvement and update risk assessments as needed.
   5.3 Any changes in the operational environment or organizational context must trigger a reassessment of existing risks and the development of new risk mitigation strategies if necessary.

6. Reporting and Communication
   6.1 A reporting mechanism must be established to facilitate the reporting of operational risks, near misses, and incidents by all personnel.
   6.2 Communication channels must be established to ensure timely dissemination of risk-related information, including updates to risk assessments, mitigation strategies, and lessons learned.
   6.3 Reporting and communication processes must encourage a culture of transparency, accountability, and continuous improvement in operational risk management.

7. Compliance and Accountability
   7.1 Compliance with this SOP is mandatory for all operators.
   7.2 The OCS and Senior Operators are responsible for ensuring adherence to the guidelines outlined in relation to operational risks.