Likeliho

od

BSBRSK501B Manage Risk.

Consequen
ce

Leve
l of
Risk

Risk
Priority

What What How can What can

can
it
happen
Re is the
f. risk happen happen (Consequen
ce)
(Risk) (Event) (Cause)

ANALYSIS

Identif
y
existin
g
contro
l
Effectivene
ss of
existing
control

Date:

Reviewed by:

Date of risk review:

Date:

Compiled by:

Function ( Activity ):

Treat
risk
(Y/N)

Further
action

Table 2. Risk Register

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BSBRSK501B Manage Risk.

Government

Dangerous
Chemical

SOURCE /
HAZARD

Introduction of
new tax laws

Spill

EVENT /
INCIDENT

Increased

administrative
work
Increased
errors in
bookkeeping
Financial
penalties
Loss of profits

Injury

Environmental
damage

Reputation
Cost

CONSEQUENCE

Political need
for additional
revenue

Design fault

Wrong storage
Untrained staff

CAUSE (S)

Selective
amnesia
Spin doctors
Train staff

Early detection
Clean-up system
Train staff

CONTROLS

Accounting
department
Start of new
financial year

Chemicals store
room
During refill
During handling

WHEN & WHERE

Table 3. Component of Risk

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Table 4. Risks Checklist

Name of Organisation / Project:
Compiled by:

Date:

Risk Criteria

Human Resources

Risk

Examined

Loss of key employee

Low availability of qualified personnel

Inadequate skills and training

Inadequate budgets
Financial

Cost overruns
Funding cuts
Unrealistic / inaccurate cost estimates
Lack of stakeholder consensus
Change in key stakeholders

Organisational

Lack of involvement by key personnel

Changes in company ownership
Organisational structure
Changing market demands
Competitor activities

Business

Poor timing of product release

Lack of poor documentation
Unavailability of resources and materials
Poor public image
Environmental threats
Weather conditions
Civil unrest

External

Labour strikes or work stoppages

Seasonal or cyclical events
Lack of vendor and supplier availability
Financial instability of vendors and suppliers
Complex technology

Technical

New or unproven technology

Unavailability of technology
Unrealistic performance goals

Performance

Immeasurable performance standards

Other

Cultural

Resistance to change
Cultural barriers

Others

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Table 5 . Likelihood Definitions Table

DESCRIPTION

FREQUENCY EXPECTED
EVERY :

LEVEL

DESCRIPTOR

Almost Certain
90 - 100%

Expected to occur in most situations.

Year

Likely
50 - 90 %

Will probably occur in most situations.

3 Years

Possible
25 - 50 %

Might occur at some time.

10 Years

Unlikely
10 - 25 %

Could occur at some time.

30 Years

Rare
1 - 10 %

May occur only in special situations.

100 Years

Very Rare
<1%

Have never heard of it happening.

1000 Years

Almost Incredible
< 0.001 %

Theoretically possible but not expected to occur.

10,000 Years

Table 6. Consequences Definition Table

LEVEL

DESCRIPTOR

Risk Criteria

INSIGNIFICANT

No service impact, low financial loss.

MINOR

Minimal disruption to service, medium financial loss.

MODERATE

Interruption to service, high financial loss.

MAJOR

Loss of service, major financial loss.

CATASTROPHIC

Loss of business, huge financial loss.

BSBRSK501B Manage Risk.

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Table 7. Consequences Table of POSITIVE Definitions

LEVEL

DESCRIPTOR

EXAMPLE

INSIGNIFICANT

Small benefit, low financial gain.

MINOR

Minor improvement, some financial gain.

MODERATE

Some improvement, high financial gain.

MAJOR

Enhanced reputation, major financial gain.

OUTSTANDING

Major reputation enhancement, huge financial gain.

Table 8. Risk Assessment Register

Ref.#

RISK

LIKELIHOOD CONSEQUENCE

LEVEL OF
RISK

PRIORITY

1
2
3
4
5

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Table 9. Level of Risk Matrix (Qualitative)

CONSEQUENCE
1

INSIGNIFICANT

MINOR

MODERATE

MAJOR

CATASTROPHIC

ALMOST
CERTAIN

MEDIUM

HIGH

HIGH

EXTREME

EXTREME

LIKELY

MEDIUM

MEDIUM

HIGH

HIGH

EXTREME

POSSIBLE

LOW

MEDIUM

HIGH

HIGH

EXTREME

UNLIKELY

LOW

LOW

MEDIUM

MEDIUM

HIGH

RARE

LOW

LOW

MEDIUM

MEDIUM

HIGH

VERY RARE

LOW

LOW

MEDIUM

MEDIUM

MEDIUM

ALMOST
INCREDIBLE

LOW

LOW

LOW

LOW

MEDIUM

LIKELIHOOD

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Table 10. Options and Issues to Consider

OPTION

ISSUES TO CONSIDER

Acceptability

Will the stakeholders agree to the treatment option?

Compliance

Does treating or not treating the risk break any laws?

Compatibility

Is the treatment compatible with others?

Cost Effectiveness

How much will the treatment cost? Does the benefit

outweigh the cost?

Delegation of Authority

Are the treatment options applied at the appropriate

levels of authority?

Efficiency

Will the treatment option affect efficiency of the activity?

Environmental Effects

What impact will the treatment have on the environment?

Objectives

Does the treatment promote organisational objectives?

Risk Creation

Will the treatment introduce a new risk?

Timing

Will the benefit be seen quickly?

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Table 11. Grid Analysis Category / Score Table

CATEGORY

SCORE ( 1 - 5 )

ACCEPTANCE

COMPLIANCE

OBJECTIVES

RISK CREATION

TIMING

Table 12. Grid Analysis Treatment Options Score Table

OPTION

ACCEPTANCE

COMPLIANCE

OBJECTIVES

RISK CREATION

TIMING

OPTION 1

OPTION 2

OPTION 3

POOR

GOOD

BSBRSK501B Manage Risk.

VERY GOOD

EXCELLENT

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TABLE 13. WRAC Workplace Risk Assessment and Control

PROBABILITY

RATING

CONSEQUENCE

RATING

COMMON

FATALITY/PERMANENT DISABILITY

HAS HAPPENED

MAJOR INJURY

COULD HAPPEN

AVERAGE LOST TIME INJURY

NOT LIKELY

MINOR INJURY

PRACTICALLY
IMPOSSIBLE

MEDICAL TREATMENT ONLY OR

LESS

CONSEQUENCE

PROBABILITY
A

11

12

16

13

17

20

10

14

18

21

23

15

19

22

24

25

HIGH RISK
MEDIUM RISK
LOW RISK

1-6
7 - 15
16 - 25

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Definitions

TERM

DEFINITION

ALARP

As low as reasonably achievable.

CAUSE

The reason for something to happen.

CHECKLISTS

A list of items.

COMPLIANCE

Doing what you have been ordered to do.

COMPONENTS OF RISK

Parts of risk.

CONSEQUENCE

Something that happens as a result of some action or actions.

CONTROL

To have power over something.

CRITERIA

Something used to make a decision on.

DUTY OF CARE

Legal obligation to exercise care.

ESTABLISH

To start something and make sure everyone knows about it.

EVALUATE

Determine or judge the value of something.

HAZARD

A source of danger.

IDENTIFY RISK

To know what risk exists.

IMPLEMENT

To begin to do or begin to use something.

INNOVATION

A new idea or process or method.

INTANGIBLE

Not made of physical material. Cannot be touched.

INTELLECTUAL
PROPERTY

An idea, method, process that comes from a person's mind.

ISO

International Organisation for Standardization ( www.iso.org )

LEVEL OF RISK

the amount of risk.

LIKELIHOOD

The chance that something will happen.

MATRIX

A set of numbers or descriptions placed in rows and columns.

MONITOR

To watch, keep track of, check regularly.

PERSPECTIVE

Point of view.

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POLICY

Describes how things should be done.

PRACTICABLE

Easy to use or implement.

QUALITATIVE

Relating to quality or kind of something.

QUANTITATIVE

Relating to amount, number or quantity of something.

RISK

The possibility something will happen.

RISK CONTEXT

The environment in which something might happen.

RISK MANAGEMENT

A process to control risk.

SCENARIO PLANNING

A description of what could possibly happen.

SCOPE

The possibility or opportunity to deal with something.

SOURCE

The cause of something.

STAKEHOLDERS

Persons with interest or concern about something.

SWOT ANALYSIS

Analysis of Strengths, Weaknesses, Opportunities, and Threats

TANGIBLE

Something physical, can be touched.

TOLERANCE

Amount of willingness to accept.

TRANSFER

Moving someone or something to another place.

TREATMENT

Dealing with something.

WRAC

Workplace Risk Assessment and Control.

BSBRSK501B Manage Risk.

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