Knowledge and application of risk management principles are essential to meet statutory obligations. Licensees and approved managers should be aware of new and existing risks and take appropriate steps to address them. Incident prevention should be included in the business practices as it helps a business to meet its objectives and legal obligations, while reducing the chances of unwanted and costly impacts on business.
Licensees and approved managers are also compelled by the Liquor Act 1992 and Liquor Regulation 2002 to adopt a risk management approach to their venues. The act and regulation both require that a safe environment for patrons and staff has to be provided and maintained. Another requirement is to ensure that liquor is to be served, supplied and promoted in a way that minimises harm arising from its use, and preserves the peace and good order of the neighbourhood. The legislation also places a prohibition on practices encouraging rapid or excessive consumption.
Licensees also have a range of other statutory obligations, for example, Workplace Health and Safety Act 2011, Fire and Rescue Service Act 1990. Risk management is central to compliance.