Risk Assessment and Treatment Process [Insert classification] More detailed guidance may be defined for each grade of impact, depending on the subject of the risk assessment. The rationale for allocating the grade given should be recorded to aid understanding and allow repeatability in future assessments.
2.6.3 Risk classification Based on the assessment of the grade of likelihood and impact, a score is calculated for each risk by multiplying the two numbers. This resulting score is then used to decide the classification of the risk based on the matrix shown in figure 2. Each risk will be allocated a classification based on its score as follows: • • •
High: 12 or more Medium: 5 to 10 inclusive Low: 1 to 4 inclusive
[Note – you may decide to change the definition of high, medium and low classifications based on your general risk appetite e.g. you may decide that only risks with a score of 16 or more will be classified as high.]
RISK LIKELIHOOD: What are the chances of the risk event happening?
RISK IMPACT: How severe could the consequences be if the risk event happened?
INSIGNIFICANT 1
MINOR 2
SIGNIFICANT 3
MAJOR 4
SEVERE 5
ALMOST CERTAIN 5
MEDIUM 5
MEDIUM 10
HIGH 15
HIGH 20
HIGH 25
LIKELY 4
LOW 4
MEDIUM 8
HIGH 12
HIGH 16
HIGH 20
MODERATE 3
LOW 3
MEDIUM 6
MEDIUM 9
HIGH 12
HIGH 15
UNLIKELY 2
LOW 2
LOW 4
MEDIUM 6
MEDIUM 8
MEDIUM 10
RARE 1
LOW 1
LOW 2
LOW 3
LOW 4
MEDIUM 5
Figure 2: Risk matrix chart
Version 1
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