Risk Rating, Likelihood & Consequence

Purpose

The Risk Rating is a measure agreed by the organisation in determining the impact to the business if the reported risk is realised. The Inherent and Residual Risk ratings are automatically assigned by byondpro once the Likelihood and Consequence selections have been made. The rating is assigned in accordance with the matrix detailed below.

The Risk Rating matrix and associated explanations for Likelihood and Consequence is provided on the Risk summary screen as a pop-up PDF for review.

Risk Rating matrix as used in byondpro. Custom configuration in byondpro allows the selection of either Matrix A or Matrix B’.

Likelihood matrix example provided with byondpro

Level	Descriptor	Description
A	Almost certain	The event is expected to occur in most circumstances (once a year or more frequently)
B	Likely	The event will probably occur in most circumstances (1 in 3 years)
C	Possible	The event should occur at some time (1 in 10 years)
D	Unlikely	The event could occur at some time (1 in 30 years)
E	Rare	The event may occur only in exceptional circumstances (1 in 100 years)

Risk Consequence matrix example provided with byondpro

Impact Area	Insignificant (1)	Minor (2)	Consequence Moderate (3)	Major (4)	Severe (5)
Injury	Medical treatment less than WorkCover threshold	Medical treatment. Workcover threshold reached	Objective reversible disability	Moderate objective irreversible disability or Impairment (less than 30% and one person)	Single fatality and /or server irreversible disability (more than 30% and/or more than one person)
Property Finance Investment	Less than $5,000 Less than $5,000 Less than $100,000	$5,000 to $50,000 $5,000 to $50,000 $100,001 to $5,000,000	$50,001 to $500,000 $50,001 to $500,000 $5,000,001 to $10,000,000	$500,001 to $2,500,000 $500,001 to $2,500,000 $10- to $15,000,000	More than $2,500,001 More than $2,500,001 More than $15,000,001
Legal	Minor legal issues, non compliances and breaches of regulation	Minor legal issues, non compliances and breaches of regulation	Serious breach of regulation with investigation or report to authority with prosecution and or moderate fine	Major breach of regulation Major litigation	Significant prosecution and fines
Service	up to 30 minute service delay OR revenue loss of less than $5,000	30 minutes - 2 hours OR revenue loss of $5,001 to $50,000	2 hours - 1 day OR revenue loss of $50,001 to $500,000	1 day -1 week OR revenue loss of $500,001 to $2,500,000	1 week- 1 month OR revenue loss of more than $2,500,001
Reputation	Works Request /Incident form	Local Press	Radio, print, internet	State TV, report by Dept of Health requested	Dept of Health review, government enquiry
Environment	No damage caused but some clean-up required	Minor effect on environment (recovery in 1 to 6 months)	Moderate effect on environment (recovery in 6 to 12 months)	Serious effect on environment (recovery in 1 to 10 years)	Very serious effect on environment (recovery beyond 10 years)
Physical/Cultural Heritage	No residual impact (clean up or information recovery required)	Minor residual impact (replace minor part of original with reproduction or theory)	Major residual impact (replace major part of original with reproduction or theory)	Significant residual impact (only traces remain)	Permanent loss (cannot be reproduced )

Risk Rating, Likelihood & Consequence

The online help was created with Dr.Explain