LIABILITY MUTUAL INSURANCE (LMI) AUDIT
Council’s public liability and professional indemnity insurer Liability Mutual Insurance (LMI) conducts biennial assessment audits with Councils, and every in-between year there is an audit progress “follow up review”.
As part of a continuous improvement philosophy, LMI actively reviews the progress made in the 12 months following the audit. The recommendations that were made, aim to address any deficiencies, in order to reduce Council’s exposure to public liability and professional indemnity claims and litigation.
Council’s audit score has continued to dramatically increase thus improving our professionalism and accountability across many areas. The follow up progress review conducted on 13 February 2013 has again received a much improved rating, as outlined below:
2013 Audit Follow Up Review 2012 Audit 2010 Audit
82% 70% 49%
The improvements were made in our policies, processes, risk management and general procedures in the areas that had been identified.
JMAPP (PROPERTY)
In addition to the public liability and professional indemnity(LMI) audit, Council’s lead insurers also conduct a JMAPP Property Risk Audit (Jardine Municipal Assets Protection Plan).
Council is audited in the following areas: Accountability and Continuous Improvement, Proactive Risk Management, Reactive Risk Management, Business Continuity Management and JMAPP Site Inspections.
The focus of assessment tends to change from audit to audit, with different organisational activities being given weight and emphasis, depending on what particular issues are of most concern to the insurer at the time of the audit, and what claims the Insurer has paid out on, or can potentially see as threatening local government.
This year Council received a much improved rating of 70% (the previous audit conducted in 2010 was 49%), with the increased score largely due to improvement to processes across the organisation and the implementation of Council’s Risk Management Strategy.
Councils are also benchmarked against other Councils to determine how they are tracking with other similar rural and regional Council’s.
RISK MANAGEMENT
Council recognises that Risk Management is an integral part of good management practice, and through an Enterprise Risk Management (ERM) approach, is committed to establishing an organisational culture that ensures effective risk management.
Horsham Rural City Council’s level of risk maturity has continued to develop over the last 12 months. Council has further monitored and implemented risk management in its activities and business processes.
The key risk management strategies that Horsham Rural City Council agreed to for the year was to further embed an effective risk management culture across the organisation, and to support this with quality and succinct reporting on all extreme and high level risks.
Outcomes achieved include:
Operational Risk Workshops Conducted – October 2012
Risk Management Strategy Reviewed – December 2012
Targeted Risk Appraisal Conducted (HYPE Skate Park) – February 2013
LMI Public Liability and Professional Indemnity Audit Progress Review - February 2013 Risk Management Policy Reviewed – May 2013
JMAPP Property Risk Management Audit Conducted – May 2013 Strategic Risk Workshop Conducted – June 2013 Risk Management Framework Adopted – June 2013
Risk Management Committee Meetings Conducted – Seven
Further Developed Interplan (IRM) Risk Register and Reporting
Fraud Awareness Training Conducted – Staff Attended (202)
Further refinements and analysis of risk management reporting will continue to strengthen the management of risk at Horsham Rural City Council.
risks and their causes.
and impact of risks
qualitative
Risk Identification
Risk Analysis /Assessment
Monitoring & Review
monitoring of risk and actions to control them
Risk Treatment
mechanisms to minimize risks
ANNUAL REPORT 2012 - 2013 37
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