The agency identifies and reduces potential loss and liability by:
Interpretation: Agencies can further support their risk management activities by developing a risk management plan that is proactive and anticipates potential risks, includes strategies for managing risks, assigns responsibility for key tasks, and includes measurable goals for reducing potential risks.
The agency annually assesses areas of potential risk, including:
Update: Revised Standard, Deleted First Interpretation, Revised Second Interpretation, Added Note - 12/01/10
PA-RPM 2.01 Original Standard, First and Second Interpretation:
Management conducts an internal assessment of overall risk at least annually, that includes:
Interpretation: Element (d) of the standard refers to all contracts to which the agency is a party.
Interpretation: It is acceptable for the areas of known risk outlined in the elements of PA-RPM 2.01 to be assessed separately and at different times throughout the year, e.g., at regular management meetings, as long as management reviews the results of those assessments as a whole at least once a year to evaluate overall risk.
When reviewing areas of risk, elements of PA-RPM 2.01 may be reviewed together to ensure that a genuine understanding of potential risk is achieved. For example, a review of contracting risks may include elements (a), (b), (d), (k), and (m). In another example, elements (a), (b), (e), (f), and (l) relate to human resource management, which is known to be the greatest area of potential risk for agencies.
For more information about responsibilities regarding risk review see PA-AM 7.06.
Interpretation: Although the agency should assess all areas of potential risk annually, the assessments do not need to be conducted altogether, in one sitting.
Note: The results of these assessments should be provided to the agency head, for its annual review of overall risks to the agency. For more information see PA-AM 7.06.
The agency conducts a quarterly review of immediate and ongoing risks that includes a review of incidents, critical incidents, accidents, and grievances related to:
Update: Added Note - 06/01/10
Note: Elements a, b, and c do not apply to credit counseling agencies.
The agency reviews all incidents and accidents that involve the threat of or actual harm, serious injuries, and deaths, and review procedures:
Individuals qualified by knowledge and experience are responsible for risk prevention and management functions.
The agency informs external organizations that use its facilities of their obligation to minimize hazards and to assume liability for use of the facility.
NA The agency does not permit other organizations to use its facilities.