1. The QED Group
Solutions to Accreditation Challenges
Risk Management and Contract Management
The QED Group
Carolyn Searle
2. The QED Group
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3. The QED Group
The QED Group
• An alliance of like minded
professionals
• Long history of working with MLs
• Consultants
– Kim Wilson
– Peter Spence
– Tarun Philip
– Marissa Jank
– Carolyn Searle
4. The QED Group
Risk Management & Contract Management
• How MLs can extend the benefits of robust risk
and contract management to beyond just
Accreditation Standards.
• The Presenters
– Kim Wilson
– Marissa Jank
9. The QED Group
Risk Management Framework
Strategic
Risk
Operational
Risk
Program/
Project Risk
1. Identified as an
adjunct to
Strategic Plan
2. Assessed by Board
3. Reviewed by Risk
Sub-Committee
(ARC) of the
Board when they
meet.
4. Reviewed by the
Board as a whole
on an annual basis
as part of
planning process
1. Identified by key
executive/senior
managers
2. Managed in the
course of business
operations – part
of KPIs for
managers
3. Board and/or Risk
Sub-Committee
receives regular
reports on
High/Extreme
risks and
mitigation actions.
1. Identified as part
of business
case/proposal
2. Assessed by
Program/Project
Manager
3. High/Extreme
risks should be
reported to Board,
Risk SubCommittee or
senior Executive
4. Risks Retired as
program/project
ceases.
10. The QED Group
Sample Risk Matrix
Likelihood
Insignificant
Minor
Moderate
Major
Catastrophic
Low
Medium
High
Extreme
Extreme
Low
Medium
High
High
Extreme
Low
Medium
Medium
High
Extreme
Low
Low
Medium
Medium
High
Low
Low
Medium
Medium
Medium
Consequence
Almost Certain
Likely
Possible
Unlikely
Low
11. The QED Group
Risk Assessment Process – Likelihood
Rare:
Unlikely:
Possible:
Likely:
Almost Certain:
The event will only occur in exceptional circumstances or as
a result of a combination of unusual events
The event may occur at some time but not likely to occur in
the foreseeable future
The event may occur within the foreseeable future or
medium term
The event will probably occur in most circumstances
The event will occur in most circumstances
12. Risk Assessment Process –
Consequence
The QED Group
Insignificant
Minor
Medium
Legal and
Regulatory
Compliance
Insignificant legal
regulatory or
internal policy
failure
Minor legal,
regulatory failure
(able to be resolved
with no penalty)
Reputational
No harm done to
organisation’s
reputation.
Complaints
resolved by Team
manager or
member of staff.
No injury, near
miss.
Minor adverse
publicity in particular
locations. Minor
complaints about
products and/or
services.
Minor loss
resulting in only
minimal impact to
local area budget.
Loss that impacts on
a single service but
does not threaten
that service’s overall
budget.
Limited legal, regulatory Major regulatory, legal or
failure - reportable
internal policy failure.
incident to regulator.
Visit by regulators in
relation to noncompliance.
Increased attention
Significant or consistent
from local media
adverse national
and/or heightened
media/public attention
concern by local
(local). Major complaints
community. Significant
by stakeholders.
complaints about
services.
One or two employees
An event resulting in:
requiring medical
• permanent injury/
treatment or lost injury illness or
time.
hospitalisation(single
employee
• medical treatment (>3
employees)
Loss of less than
Loss between $500,000
$500,000, includes
to $2M
losses of < $500,000
that threaten the
overall budget of a
single service.
Workplace
Health and
Safety
Financial
Isolated event, minor
injury requiring only
first aid treatment
Major
Catastrophic
Significant legal
regulatory or policy
failure – substantial
criminal, financial
penalties.
Serious adverse public or
media publicity (local,
state and national level).
Loss of confidence by
stakeholders and
media/public.
An event resulting in
death or permanent
injury/ illness or
hospitalisation of
multiple employees.
Loss greater than $2M.
13. Risk Assessment Process –
Consequence
The QED Group
Insignificant
Minor
Medium
Major
Catastrophic
Operational
Negligible short
term disruption to
non-essential
services.
Short term disruption
to services, can be
contained within
existing
contingencies.
Short term disruption to
services, exceeds
contingencies, resulting in
additional resource and
/or budget requirements.
Substantial disruption to
multiple services resulting in
short to medium term loss of
business continuity, resulting in
the need to conduct replanning and re-estimating.
Substantial disruption to
multiple services,
threatening the survival or
long term business
continuity of the
organisation.
Political and
economic
Political and
economic events
without noticeable
consequences.
Political and economic
events with minor
consequences.
Political and economic
events that may cause
disruption of programs
and/or changes to budget.
Political and economic events
leading to reduction in flexible
funding and activities, and
changes in operating
requirements that need
reallocation of resources.
Political and economic
events leading to core and
flexible funding removed or
significantly reduced
threatening business
continuity.
Strategic
Negligible impact on
achieving strategic
objectives.
Minor impact on
achieving strategic
objectives that are
easily remedied.
Major impact on achieving
strategic objectives that
require allocation of extra
resource.
One or more strategic
objectives are under significant
threat of not being achieved.
One or more strategic
objectives cannot be
achieved.
Clinical
A preventable event
resulting in no
injury.
A preventable event
resulting in minor
injury requiring only
first aid treatment.
A preventable event
resulting in increased
treatment, but not
hospitalisation.
A preventable event resulting
in:
• temporary loss of physical
function
• requiring hospital admission
• surgical intervention, or
• transfer to a higher acuity
facility.
A preventable event
resulting in:
• permanent disabling
physical and/or
• psychological injury, or
• death
18. The QED Group
ML Contract Management
Are you following your organisation’s
set processes?
19. The QED Group
Schedule 4 .1 – Subcontracting
• Demonstrating contestable tendering
•
•
•
•
strategic sourcing
Seeking the correct information from applicants
effective bid analysis
Fair and transparent award of services to providers
20. The QED Group
Schedule 4 .1 – Subcontracting
• Demonstrating effective implementation of contracts
• Cross reference with the ML Deed to ensure that you do
not create any inconsistences between the two
documents
• Formation of contracts
•
•
•
•
•
•
Scope of work or services
Fee and payment structure
Performance management of service provider
Deliverables
Persons responsible
General conditions
21. The QED Group
Schedule 4 .1 – Subcontracting
• Section 4.1.7 – Schedule 4 requirements:
– Typically included in the general conditions of
contract
– Recommend AMLA template contracts and then
adapt to meet ML organisational specific
requirements
22. The QED Group
Section 4.2 Subcontracting - Contract
management
• DoH reporting
– Can also meet section 4.2 of Schedule 4
requirements
– Align contract performance with ML reporting
requirements to DOH for your relevant program
– Align deliverable with your own DoH deliverables
– Dates that suit your reporting
23. The QED Group
Subcontracting - Contract management
• General issues from service providers
– General conditions
•
•
•
•
•
•
Liability
Insurance
Payment terms
Intellectual property
Variation processes and approvals
Dispute Resolutions
– Scope of work
24. The QED Group
Subcontracting - Contract management
• Variations
– Negotiating with an authorised person
– Record all variations and changes in a systematic
format
– Cross reference with ML Deed to ensure that you
do not create any inconsistences between the two
documents
25. The QED Group
For more information, please contact
• Tarun Philip
(02) 9925 4022
tarun@kwelasolutions.com
• Kim Wilson
(02) 9925 4021
Kim@kwelasolutions.com
