Appendix F(ii)
RISK CRITERIA FOR IMPACT
Failure to Financial loss Effect on
provide Project
Personal
Effect on Level of Effect on Quality of statutory Objectives/
Factor Score Embarrassment/reputation Personal Safety privacy
Service service duties/meet Schedule
infringement
legal Deadlines
obligations
Major Producing
Positive national press more than
improvement to
Major improvement to services, generally or across National award or
OPPORTUNITIES
Exceptional 4 the health, £50,000
a broad range recognition/elevated status by
welfare & safety
national government
of stakeholders
Recognition of successful Significant Producing up
initiative improvement to to £50,000
Major improvement to service or significant
Significant 3 Sustained positive the health,
improvement to critical service area
recognition and support from welfare & safety
local press of stakeholders
Major loss of service, `Adverse and persistent Litigation/ Costing over Complete
including several Quality of service national media coverage claims/fines £500,000 failure of
All personal
important areas of deteriorates by over Adverse central government Death of an from Up to 75% of project/
details
Catastrophic 4 service and /or 80% from accepted response, involving (threat of) individual or Departmental Budget extreme delay
compromised/
protracted period. (ideally defined by PI’s) removal of delegated powers several people £250k + – 3 months or
revealed
Service Disruption 5+ operating parameters. Officer(s) and/or Members Corporate more
Days forced to resign £500k +
Adverse publicity in Costing Significant
Complete loss of an Litigation/
Quality of service professional/municipal press, between impact on
important service area Many claims/fines
deteriorates by between affecting perception/standing £50,000 and project or
for a short period individual from
25% to 60% from in professional/local Major injury to £500,000 most of
Major effect to services personal Departmental
Major 3 accepted (ideally government community an individual or Up to 50% of expected
in one or more areas for details £50k to £125k
defined by PI’s) Adverse local publicity of a several people Budget benefits fail/
a period of weeks compromised/ Corporate
operating parameters. major and persistent nature major delay –
Service Disruption 3-5 revealed £100k to
THREATS
Statutory prosecution of a 2-3 months
Days £250k
serious nature.
Major effect to an Costing Adverse effect
important service area Quality of service Litigation/ between on project/
Some
for a short period deteriorates by between claims/fines £5,000 and significant
Adverse local publicity /local individual
Adverse effect to 10% to 25% from Severe injury to from £50,000 slippage –
public opinion aware personal
Moderate 2 services in one or more accepted (ideally an individual or Departmental Up to 25% of 3 weeks–2
Statutory prosecution of a details
areas for a period of defined by PI’s) several people £25k to £50k Budget months
non-serious nature compromised/
weeks operating parameters. Corporate
revealed
Service Disruption 2-3 £50k to £100k
Days
Litigation/ Costing less Minimal
Brief disruption of Quality of service Contained within section/Unit Isolated claims/fines than £5,000 impact to
Minor injury or
important service area deteriorates up to 10% or Directorate individual from Up to 10% of project/
Minor discomfort to an
1 Significant effect to non- away from accepted Complaint from personal detail Departmental Budget slight delay
individual or
crucial service area (ideally defined by PI’s) individual/small group, of compromised/ £12k to £25k less than 2
several people
Service Disruption 1Day operating parameters. arguable merit revealed Corporate weeks
£25k to £50k
10th July 2008
RISK CRITERIA FOR LIKELIHOOD
OPPORTUNITIES -
FACTOR SCORE THREATS - DESCRIPTION INDICATORS INDICATORS
DESCRIPTION
More than 75% chance of Favourable outcome is likely
Regular occurrence Circumstances Clear opportunity which can relied on with reasonable certainty,
occurrence to be achieved in one year or
Very likely 4 frequently encountered - to be achieved in the short term based on current management
better than 75% chance of
daily/weekly/monthly processes.
occurrence.
Likely to happen at some point within the Reasonable prospects of
40% - 75% chance of next 1-2 years favourable results in one year Opportunities that may be achievable but which require careful
Likely 3
occurrence Circumstances occasionally encountered 40% to 75% chance of management. Opportunities that arise over and above the plan.
(few times a year) occurrence.
Some chance of favourable
Possible opportunity which has yet to be fully investigated by
10% - 40% chance of outcome in the medium term
Unlikely 2 Only likely to happen 3 or more years management. Opportunity for which the likelihood is low on the
occurrence or less than 40% chance of
basis of management resources currently being applied.
occurrence.
Less than 10% chance of Less than 10% chance of
Very unlikely 1 Has happened rarely/never before Has happened rarely/never before
occurrence occurrence
Likelihood THE RISK MATRIX
(With Scores)
Very Likely 4 LOW MEDIUM HIGH HIGH 4 8 12 16
Likely 3 LOW MEDIUM MEDIUM HIGH 3 6 9 12
Unlikely 2 LOW LOW MEDIUM MEDIUM 2 4 6 8
LOW LOW LOW LOW
Very Unlikely 1 1 2 3 4
Major Catastrophic
Impact Minor 1 Moderate 2 3 4
2