Risk Management embedded in local government culture

26 Aug 2017 8:33 AM | Anonymous

Local Government Risk Services (LGRS) was established to manage and service the insurance and risk management needs of Local Government in South Australia.

We chat with Robyn Daly, Scheme Manager, Local Government Association Mutual Liability Scheme.

Hi Robyn - thanks for taking the time to speak with LG Professionals, SA.

Tell us about LGRS - where does it operate? What's its ‘reason for being’?
The LGRS brand represents Local Government Risk Services. LGRS is the South Australian public sector division of JLT (Jardine Lloyd Thompson). Nationally JLT‘s core public sector business is focussed on partnering with local government – providing membership, risk based services and ‘insurance’ options to over 95% of all councils in Australia.

How does it benefit (SA) councils?
Apart from the obvious value as the recognised specialised provider of insurance services to local government, LGRS provides to local government in South Australia, councils benefit from the establishment of the unique risk indemnity schemes, being the LGA Workers Compensation Scheme, LGA Mutual Liability Scheme and LGA Asset Mutual Fund.

Established via the Local Government Act 1999, the LGA in partnership with LGRS continue to deliver ultimate protection, consistency of risk, claim services and value-add incentives via the schemes in relation to workers compensation, public liability and asset (including motor vehicles/machinery) management. Reflecting the application of good risk mitigation strategies.

Councils as members of the schemes are able to participate in financial rewards, via bonuses, rebates and special distributions. Councils are encouraged to re-invest these financial incentives into specific risk mitigation incentives/projects, designed to assist and support councils to reduce/mitigate identified risk trends.

How do you encourage council officers to take time out of their busy day to day schedules to consider risks and plan their organisational or departmental risk management strategies effectively?
Council officers do not need to be encouraged to ‘take time out’ to consider risks and plans. Via ongoing (100%) sector participation in the membership scheme concept, risk management is an embedded culture within each council business structure, supported by the requirements in the Local Government Act that all councils must have strategic plans that are implemented, measured and monitored. Managing and mitigating risk is an essential day to day function of a council.

How can LGRS help with this?
In South Australia, LGRS continues to operate in partnership with the LGA, the sector and each council to support the evolution of the sector’s risk profile. This is done by the consistent delivery of risk management and claim services recognising that each council has its own risk profile that can only mature successfully at its own rate. LGRS as scheme manager, reports regularly to each scheme board which has the delegated authority of the LGA to oversee the successful delivery of the schemes’ objectives to the sector.

The ongoing financial success of the schemes ensures that the boards are in a position to direct financial support and assistance to the areas of ultimate cover, claims and risk management, as identified and recommended by the LGRS, as the scheme manager. This can only be achieved by LGRS ensuring 100% council participation.

What would you like to see in the future in terms of (SA) councils and their approach to risk management?
Recognition and ongoing commitment to the application of effective risk management so it reflects in the culture of each council’s core business.

This objective will be achieved by the continuation of 100% council participation in the schemes – which continue to be successfully delivered by LGRS in partnership with the LGA.
Partnering is the key to achieving success and one of the best examples of this is the partnership between LG Professionals, SA and LGRS.

With an equal passion and unbounded enthusiasm for local government, our partnership will continue to deliver tailored services locally and nationally across the sector.

Mailing Address:  5 Hauteville Tce EASTWOOD SA 5063   Phone: 8291-7990;   Fax: 8451-1568   E-mail: admin@lgprofessionalssa.org.au

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