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 )
|