Risk Management

Risk Management Source http://www.deir.qld.gov.au/workplace/law/codes/riskman/risk/index.htm

Risk Rating Matrix

Likelihood / Consequence	Insignificant	Minor	Moderate	Major	Catastrophic
Rare	Low	Low	Moderate	High	High
Unlikely	Low	Low	Moderate	High	Extreme
Possible	Low	Moderate	High	Extreme	Extreme
Likely	Moderate	High	High	Extreme	Extreme
Almost certain	High	High	Extreme	Extreme	Extreme

Measures of Likelihood

	General	Strategic	Operational	Routine
Rare	May only occur in exceptional circumstances	Less than once in every 50 years	Less than once every 10 years	Less than once every 5 years
Unlikely	Could occur at some time	At least once in 20 years	At least once in 5 years	At least once in 3 years
Possible	Might occur at some time	At least once in 5 years	At least once per year	At least once per year
Likely	Will probably occur in most circumstances	At least once per year	At least once per quarter	At least once per month
Almost Certain	Expected to occur in most circumstances	More than once per year	At least once per month	At least once per week

Measures of Consequence

	Reputation & Image	Financial Loss	Safety & Injury	Operation loss	Legislative compliance
Insignificant	Low impact, no media coverage	<$50k	No injuries	Minor or no damage to assets. Minor or no interruption to daily activities.	Compliant
Minor	News item with low impact or is unsubstantiated	$50k-$500k	Minor injuries/first aid required	Minor damage. Loss of operation no more than one day.	Minor breach of statute/ regulation.
Moderate	Substantiated news item, moderate news profile with embarrassment	$500k-$10m	First aid and ongoing medical treatment. Probable lost time	Significant damage to assets. Loss of operation 1 day to 1 week	Formal warning from regulator
Major	Substantiated news item, high impact news profile with embarrassment, possible 2nd or 3rd part involvement	$10m -$100m	Extensive injuries/possible multiple injuries or single fatality	Major damage to assets. Loss of operation 1 week to 1 month	Suspension of activity and prosecution/financial penalty.
Catastrophic	Substantiated widespread news item, significant reputation damage, third party actions, impact on ability to achieve strategic objectives	>$100m	Fatalities	Significant loss of assets. Loss of operations >1 month	Prosecution, financial penalty, cessation of activity

Source: http://info.anu.edu.au/Policies/_DRMA/Procedures/RM.asp. Further information on Risk Analysis and Quality Management

Back to Risk Management