The Board of the WRLC has identified the pressing need for both the Board itself and the general membership to have a better understanding the the non-ecological risks associated with managing their fishery. In this context risk is defined as the effect of uncertainty on the ability of the organisation to meet its objectives. The management of this risk is is via arrange of activities that the organisation intentionally undertakes to understand and reduce the effect of uncertainty. This has not been attempted before and in order to meet the objective it is necessary to create a risk management framework in accordance with AS/NZS ISO 3100/2009 Risk Management Principles and Guidelines. This is necessary because the Standard provides the starting point, a standard vocabulary and a baseline for comparisons and assessments of risk management processes. It is however also critical that judicious use of terminology and vocabulary is employed when engaging with industry and the WRLC Board recognises that if the wider industry is to be confident that its Board is acting to best practice then the industry fully understands what that means.

The WRLC needs generally-accepted methods for setting the annual quota that is robust to many of the differences that exist throughout industry but underpins within an acceptable harvest range, resource sustainability. The approach to be adopted needs to take into account MEY analyses, changing price relationships in the market, known risks facing the rock lobster industry, future catch and biomass projections and limits on harvest rates. Uncertainty towards moving to a larger quota can be accommodated by adopting an iterative approach to quota setting built around better industry understanding of the market and other relevant factors. Ideally an annual quota setting process needs to be underpinned by sustainable stock conditions and take into account information derived from ongoing monitoring of market conditions and industry trends. This would enable risk factors to be taken into account balancing the competing requirements of optimising price, preventing oversupply and excessive price investment instability.
The failure of Industry to reach consensus on an agreed methods for future quota setting could result in other parties setting the agenda.

Preferably, as most of the financial risks fall within industry, the industry has a primary role in annual setting of quotas with a transparent accountable decision framework within an appropriate governance, reporting and dispute resolution framework (if necessary) that is supported by government and industry.