LIKELIHOOD RATINGS
| Rating | Likelihood description | |||
| The potential for problems to occur and lead to assessed consequences | ||||
| A | Almost certain | Very high, may occur at
least several times per year |
Probability over 0.8 | A similar outcome has
arisen several times per year in the same location, operation or activity |
| B | Likely | High, may arise about once
per year |
Probability 0.5–0.8 | A similar outcome has
arisen several times per year in this organization |
| C | Possible | Possible, may arise at least
once in a 1–10-year period |
Probability 0.1–0.5 | A similar outcome has
arisen at some time previously in this organization |
| D | Unlikely | Not impossible, likely
to occur during the next 10 to 40 years |
Probability 0.02–0.1 | A similar outcome has
arisen at some time previously in a similar organization |
| E | Rare | Very low, very unlikely
during the next 40 years |
Probability less than 0,02 | A similar outcome has
arisen in the world-wide industry, but not in this organization |
CONSEQUENCE RATING
| Ratings | Impact | |||||
| Financial | Helth&
safety |
Business Interruption | Reputation& Image | Corporate& Objective | ||
| A | Catastrophic | Above $10M; not covered by insurance | Fatality(ies) or permanent disability or ill-health | Critical systems unavailable for more than a day (at a crucial time) | Demand for government inquiry | Disastrous impact |
| B | Major | $5M to $10M; not covered by insurance | Single death &/or long-term illness or multiple serious injuries | Critical systems unavailable for 1 day or a series of prolonged outages | Adverse and extended national media coverage | Major impact |
| C | Moderate | $2M to $5M; not covered by insurance | Injury; Possible hospitalisation & numerous days lost | Client dissatisfaction; Critical systems unavailable for less than 1 day | Adverse capital city media coverage | Significant impact |
| D | Minor | $300,000 to $2M; not covered by insuranc | Minor injury; Medical treatment & some days lost | Inconvenient; Critical systems unavailable for several hours | Adverse local media coverage only | Minor impact |
| E | Insignificant | Minimal financial loss; Less than $300,000 | No or only minor personal injury; First Aid needed but no days lost | Negligible; Critical systems unavailable for less than one hour | Negligible impact | Resolved in day-to-day management |
RISK PRIORITY RATING
| Consequence | ||||||
| Insignificant | Minor | Moderate | Major | Catastrophic | ||
| Likelihood | E | D | C | B | A | |
| A | Almost certain | Medium | Medium | High | High | Extreme |
| B | Likely | Medium | Medium | Medium | High | Extreme |
| C | Possible | Low | Medium | Medium | High | High |
| D | Unlikely | Low | Low | Medium | Medium | High |
| E | Rare | Low | Low | Medium | Medium | Medium |
RISK RATING DESCRIPTOR
| Rating | Description | Required Action |
| L | Low | Acceptable: Unlikely to require specific application of resources; Manage by routine procedures. Monitor and review |
| M | Medium | Acceptable: Unlikely to cause much damage and/or threaten the efficiency and effectiveness of the program/activity. Treatment plans to be developed and implemented by operational managers. Manage by specific monitoring or response procedures. |
| H | High | Generally not acceptable: Likely to cause some damage, disruption or breach of controls. Senior management attention needed and management responsibility specified; Treatment plans to be developed and reported to Deans, Exec Director/PVC &/or Vice-Chancellor. |
| E | Extreme | Not acceptable: Likely to threaten the survival or continued effective functioning of the program or the organisation, either financially or politically. Immediate action required; Must be managed by senior management with a detailed treatment plan reported to Deans, Exec Director/PVC, Vice-Chancellor and Council |