HB 240:2000

1 - HB 240:2000 GUIDELINES FOR MANAGING RISK IN OUTSOURCING UTILIZING THE AS/NZS 4360 PROCESS
4 - Preface
6 - Contents
8 - Part 1: Introduction
8 - The Australian and New Zealand outsourcing guidelines-an opportunity and a challenge
9 - What is outsourcing?
13 - What is risk?
17 - The process for managing risk
21 - The integrated process of risk management and outsourcing
24 - Part 2: Risk management-process, methodology and techniques
24 - Step 1 Establish the context
24 - Value chain analysis
25 - Organizational culture analysis
31 - Key questions in establishing context
31 - Documentation of this step
32 - Step 2 Identify risks
32 - Tools and techniques used in the identification of risks
33 - Possible sources of risk include
33 - Possible areas of risk effect include
34 - Key questions in identifying risks
34 - Documentation of this step
35 - Step 3 Analyse risks
35 - Ranking risks
38 - Possible methods of analysing risks
38 - Key questions in analysing risk
38 - Documentation of this step
39 - Step 4 Evaluate risks
39 - Reasons why a risk may be accepted
40 - As low as reasonably practicable
40 - Key questions in evaluating and ranking
41 - Documentation of this step
41 - Step 5 Treat risks
41 - Identifying options for risk treatment
44 - The evaluation of risk treatment options
44 - Cost/benefit analysis
46 - Preparation of risk treatment plans
47 - Recovery strategy
47 - Business continuity planning
48 - Risk financing
48 - Marketing the outsourcing proposal
50 - Change management
51 - Key questions in treating risks
51 - Documentation of this step
52 - Continually monitor and review
52 - Possible methods of review
53 - Monitoring and reviewing the effectiveness of outsourcing
53 - Key questions
53 - Documentation of this step
54 - Communication and consultation
55 - Perceptions of risk
56 - Implementing a corporate program for managing risk
56 - The challenge for leaders-integration
57 - The challenge for managers-leadership
57 - The challenge for all-continuous improvement
58 - Implementation process
58 - Develop the organization policy
59 - Establish the organizational infrastructure
60 - Manage risks at the organizational level
60 - Manage risks at the program, project and team level
60 - Manage risks at the individual level.
61 - Monitor and review
62 - Risk management plans
62 - Monitoring the effective performance of risk management plans
63 - Reviewing risk management plan effectiveness
64 - Conclusion
64 - Key messages for managers in managing risk
64 - The key messages stress that
66 - Appendix A: Some major risks associated with outsourcing
66 - The possible impact on an organization's value chain
67 - The possible impact on an organization's cultural web
67 - The risk of strategic drift
69 - The impact of changes to management personnel
69 - The need to include stakeholders in the decision-making process
69 - The need for business information security management
70 - Maintenance and control over intellectual property
72 - Occupational health and safety (OH&S)
73 - Human resource management (HRM) planning
74 - Phased or Clean break approach
75 - Risk of loss of corporate knowledge
76 - Outsourcing unique skills
77 - Choosing the right contractual arrangement
78 - Performance benchmarks
78 - Outsourcing transition/implementation plans
80 - Appendix B: Tools, tips and traps
80 - Checklist for the outsourcing strategy
81 - Checklist for the arrangement model
82 - Checklist for the resource requirements and skill needs
83 - Checklist for the implementation/transition plan
84 - Checklist for the human resource management plan
88 - Appendix C: Case studies
88 - Commentary no. 1 Contract management within Defence for the provision of contractor services
94 - Commentary no. 2 Outsourcing experiences of the NSW State Government
98 - Further information
99 - References
101 - Glossary

Provides a guide to managing risks which arise when organisations outsource elements of their business. The Handbook uses the risk management model in AS/NZS 4360:1999, and includes case studies and a checklist of important issues to address when outsourcing.

First published as HB 240:2000.