Training Requirement: Risk Management Systems

Last Updated: 25 October 2023

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This article is part of our Training Requirement Series where we provide comprehensive guides to meet the actual training requirements that are often needed/requested of learning and development departments within Australia's healthcare organisations. This series includes both general requirements, such as risk management systems, but also focuses on the specific requirements stemming from the NDIS, Aged Care and NSQHS Quality Standards.

Risk management systems are essential within healthcare organisations. This guide aims to provide a framework to help Learning and Development Coordinators develop an effective training program, in alignment with NSQHS Action 1.10, Aged Care Quality Standards Requirement 8.3 (d), and Strengthened Aged Care Standards (Action 2.4.1, 2.4.2, 2.4.3, 2.4.4).

What is a Risk Management System?

A risk management system is an organised method of identifying, assessing, and mitigating risks within a healthcare environment. It serves to prevent adverse events, foster patient safety, and ensure legal compliance.

Importance of Risk Management Systems in Healthcare

Risk management systems are not merely a compliance requirement but an essential component for patient safety and quality care. They act as preventive mechanisms against medical errors, near misses, and other incidents that can compromise health outcomes. Effective risk management is also crucial for financial sustainability, as it helps avoid legal pitfalls and penalties.

What is the 'Risk Management Systems' Training Requirement?

Staff are required to understand and engage with the organisation’s risk management system. This is a mandated criterion under various Australian healthcare standards, including those related to aged care and hospital environments.

Relevant Standards

Action 1.10:

The health service organisation must:

  • Identify and document organisational risks
  • Use data collection to support risk assessments
  • Actively reduce risks identified
  • Regularly review and improve the effectiveness of their risk management system
  • Communicate and report identified risks to the workforce and patients
  • Plan and manage internal and external emergencies and disasters

National Safety and Quality Health Service (NSQHS) Standards

Requirement 8.3 (d): Risk management systems:

Effective risk management practices and systems are in place. This includes (but not limited to):

  • (i) Managing high-impact and high-occurring risks related to consumer care
  • (ii) Identifying and responding to consumer neglect and abuse
  • (iv) managing and preventing incidents (through the use of incident management systems)

Aged Care Quality Standards

Action 2.4.1: Risk management systems:

A risk management system is in place to identify, assess, document, manage and review risks to workers, clients, and the organisation

Action 2.4.2: Risk prevention, control and minimisation:

Strategies are in place to prevent, control, minimise or eliminate the identified risks

Action 2.4.3: Risk management - communicating to clients:

Data is collected, analysed and communicated to older people to inform risk assessment and management.

Action 2.4.4: Reviewing the risk management system:

The provider regularly reviews and actively improves the effectiveness of the risk management system.

Strengthened Quality Standards framework analysis - Aged Care Quality Standards

Failure to comply with the requirements could lead to an organisation being penalised or reprimanded.

Skills Required by Staff for Risk Management Systems Reinforcement

Equipping staff with the right skills is fundamental to the success of any risk management system. Here are the skills in detail:

Skill Key Elements
Risk Identification This is the cornerstone of risk management. Staff should be trained to observe and report any hazards, such as spillages, malfunctions in medical equipment, or discrepancies in medication.
Risk Analysis After identification, a thorough analysis is crucial. Staff must be capable of using analytical tools, like root-cause analysis, to determine the likelihood and potential impact of these risks.
Risk Control Staff should be adept at implementing preventive and corrective actions. This includes knowing when and how to use protective gear, how to securely manage patient data, and how to maintain hygiene standards.
Communication Risks are better managed when there is effective communication within healthcare teams. Training should incorporate the art of clear and effective communication, including proper documentation and reporting procedures.
Compliance Compliance with regulations is non-negotiable. Staff need to be well-versed in the specific legal and ethical obligations pertinent to their roles.

How to Assess Staff Competency on Risk Management Systems

Assessing the competency of staff in risk management is a multi-faceted task. Here's how to go about it:

  • Quizzes and Written Tests: These can be useful for assessing theoretical knowledge. However, they should be complemented by other forms of assessment.
  • Real-World Simulations: A simulation can test the staff’s practical ability to identify, analyse, and control risks in a controlled environment.
  • Competency Checklists: Senior staff can observe employees during their shift, using a competency checklist to assess their skills.
  • Peer Reviews: Sometimes, the best assessments come from peers who work alongside the individual and can offer a unique perspective on their competency.

By regularly assessing staff competence, you can identify areas for improvement and tailor training accordingly.

Strategies to Support Healthcare Staff Reinforce Risk Management Systems

Training should not end after an initial induction; it should be a continuous process. Here are some strategies to foster ongoing skill development:

  • On-the-Job Training: Continue to offer real-world examples and simulations for better retention and practical understanding.
  • Mentorship Programs: A mentor can provide guidance, troubleshoot problems, and offer invaluable practical knowledge.
  • Continuous Learning: Staff should be encouraged to attend workshops, webinars, and conferences to stay updated with the latest in risk management techniques.

Sample Training Plan for the Risk Management Systems Training Requirement

The ability of staff to adhere to, maintain, and reinforce risk management systems can be reinforced through effective training.

Example staff competency assessment results on risk management systems

Using the above needs assessment survey as an example - The skills that requires the most attention are risk identification skills. We can target learning initiatives to fill these gaps to enhance staff competency.

Quarter Topics Resources
Q1 Risk identification skills

Need an LMS that can support risk management systems training?

Contact Ausmed today and see how we can support with your risk management training requirements!

Staff Competency Assessment for Risk Management Systems - Example

To assess your healthcare staffs competence in risk management systems, consider asking these survey questions:

Staff Survey - Risk Management Systems Competency

  1. How would you identify a potential risk in a healthcare setting?

    • [Answer here]

  2. What methods would you use to evaluate the severity of a risk?

    • [Answer here]

  3. Describe a strategy to mitigate a specific healthcare risk.

    • [Answer here]

  4. How would you report a newly identified risk?

    • [Answer here]

  5. What steps would you take to remain compliant with healthcare standards?

    • [Answer here]

  6. What resources would you consult for keeping updated on risk management?<

    • [Answer here]


Maintaining and reinforcing risk management systems in healthcare organisations is a critical and continuous process. Investing in staff training and development in risk management systems is pivotal in ensuring safety and compliance with Australian healthcare standards.

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