Figure 2: Risk matrix chart

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.]

chances of the risk event happening? RISK LIKELIHOOD: What are the

ALMOST CERTAIN 5

LIKELY 4

MODERATE 3

UNLIKELY 2

RARE 1

RISK IMPACT: How severe could the consequences be if the risk event happened?

INSIGNIFICANT 1 MINOR 2 SIGNIFICANT 3 MAJOR 4 SEVERE 5

MEDIUM 5 MEDIUM 10

LOW 4 MEDIUM 8

LOW 3 MEDIUM 6 HIGH 15

HIGH 12

MEDIUM 9 HIGH 20

HIGH 16

HIGH 12 HIGH 25

HIGH 20

HIGH 15

LOW 2 LOW 4 MEDIUM 6 MEDIUM 8 MEDIUM 10

LOW 1 LOW 2 LOW 3 LOW 4 MEDIUM 5

Figure 2: Risk matrix chart