In every organisation, from local councils and universities to logistics hubs, airports, and retail precincts, there are unseen threats that can disrupt your ability to operate effectively. These threats — internal or external, foreseeable or unexpected — are what we refer to as operational risks.
Understanding and managing operational risks is not about fear or pessimism — it’s about being prepared, resilient, and informed. When risks are overlooked or underestimated, even a minor incident can escalate into a crisis. When properly assessed and managed, however, operational risks become manageable factors in strategic decision-making.
In this article, we’ll break down what operational risks are, provide real-world examples, explain the benefits of risk-based planning, and show how independent consultants like Smartsec Security Solutions can help you build a safer, more resilient organisation.
What Are Operational Risks?
Operational risks are the threats and uncertainties that arise from an organisation’s internal processes, people, systems, or external events — and which can interrupt its normal operations.
They differ from strategic or financial risks in that they directly affect the day-to-day ability of your organisation to deliver its services, run its facilities, or protect its people and assets.
Typical sources of operational risks include:
- System or equipment failure
- Loss of access to a facility
- Fire, flood, or natural disasters
- Inadequate security or access control
- Process failures or gaps in policy
- Human error or unauthorised behaviour
- Supply chain interruptions
- Workplace violence or aggressive behaviour
- Breaches in health, safety, or regulatory compliance
- Contractor mismanagement
Why Operational Risks Matter
The impact of operational risks can be severe, even if the initial trigger seems minor. Consider these examples:
- A security system outage at a logistics depot allows unauthorised access after-hours, leading to theft and insurance claims.
- Poorly managed visitor access at a council-run civic centre leads to a safety incident involving an aggressive individual — triggering reputational harm and a full procedural review.
- An electrical fault at a shopping precinct shuts down access control and lighting for several hours, affecting tenants and patrons.
- Non-compliance with hostile vehicle mitigation standards at a public event site exposes a local authority to liability in the event of an incident.
These are all operational risks — and they highlight why it’s not enough to have policies on paper. You need a structured process for identifying, rating, and treating risks before they become disruptive.
Categories of Operational Risks
To manage them effectively, operational risks are often grouped into several categories:
People-Based Risks
These relate to the behaviour, decisions, or absence of staff or contractors, including:
- Inadequate training or supervision
- Poorly defined roles or accountabilities
- Insider threats or deliberate policy breaches
- Key person dependency
Process Risks
These stem from flawed or incomplete procedures:
- Gaps in standard operating procedures (SOPs)
- Manual workarounds that bypass controls
- Inconsistent incident response protocols
System and Technology Risks
These arise from malfunction or misuse of infrastructure:
- Failure of security systems (CCTV, access control, alarms)
- IT infrastructure breakdowns
- Insufficient monitoring or data backups
External Risks
These are outside your direct control but must still be managed:
- Natural disasters (flood, fire, storm damage)
- Supply chain or utility disruptions
- Third-party contractor failures
- Public demonstrations or civil unrest
How Are Operational Risks Assessed?
At Smartsec Security Solutions, we assess operational risks using the ISO 31000:2018 Risk Management Framework — a globally recognised methodology that’s also embedded in Australian Standards.
Here’s how the process works:
Step 1: Context Setting
We define your site or service area, operating environment, stakeholder concerns, and legal or compliance obligations.
Step 2: Risk Identification
We identify all realistic threats — from minor system failures to major security breaches — based on your site’s function, assets, and operating profile.
Step 3: Risk Analysis
We assess each risk using two key criteria:
- Likelihood – how likely is it to occur?
- Consequence – what would happen if it did?
Each risk is assigned a severity rating using a matrix approach.
Step 4: Risk Evaluation
We rank your risks — from low to extreme — and determine which are acceptable, which need monitoring, and which require immediate mitigation.
Step 5: Risk Treatment
We recommend specific, tailored control measures. These may include:
- Upgraded systems (e.g., CCTV, access control)
- Revised procedures and roles
- Additional signage, lighting, or deterrents
- CPTED (Crime Prevention Through Environmental Design) enhancements
- Emergency response drills or SOP improvements
- Enhanced contractor or visitor protocols
What Makes Our Approach Independent and Effective?
Unlike vendors who sell systems or security firms focused on patrol contracts, we provide independent security consulting. That means:
- No products to sell — only your interests are represented
- Our advice is aligned with real risk, not industry sales targets
- All assessments are tailored, not templated
- We prioritise functionality, feasibility, and compliance, not over-engineering
Whether your site is a campus, depot, port, shopping centre, or council asset — we consider your operational needs, risk tolerance, and available resources to ensure practical outcomes.
The Benefits of Operational Risk Assessments
Investing in operational risk management delivers real-world value:
- Reduce downtime and disruption
- Improve compliance with OHS, ISO, or other frameworks
- Avoid liability through documented due diligence
- Boost safety for staff, contractors, and visitors
- Strengthen resilience across physical and procedural layers
- Support planning and funding with structured evidence
Our clients also use these assessments to validate the effectiveness of existing controls, justify upgrades, or inform grant applications and capital works programs.
Who We Support
Smartsec Security Solutions works with a wide range of organisations across Western Australia, including:
- Councils and local governments
- Commercial and retail property managers
- Higher Education and schools
- Transport and infrastructure providers
- Industrial and logistics operations
- Developers and project teams
From small-scale reviews to large multi-site assessments, we adapt our process to meet your risk profile and sector requirements.
Final Thoughts
Operational risks are a fact of life — but with the right approach, they don’t have to be disruptive or costly. By identifying your vulnerabilities before they become liabilities, you can build a smarter, safer, and more resilient organisation.
If you need help understanding your operational risks, Smartsec Security Solutions provides independent, practical advice that makes a measurable difference.
