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Risk Identification and Evaluation Guide

This document contains forms for identifying, evaluating, and treating risks related to an unspecified decision or project. The Risk Identification Form is used to list potential risks and their descriptions. Each identified risk would then be examined using the Risk Evaluation Form, which guides an analysis of the risk's likelihood and consequences both with and without existing controls, and determines the appropriate risk response. The Terminology section defines terms used in the risk evaluation process, and the Risk Level Matrix combines likelihood and consequences to determine an overall risk level.

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59 views6 pages

Risk Identification and Evaluation Guide

This document contains forms for identifying, evaluating, and treating risks related to an unspecified decision or project. The Risk Identification Form is used to list potential risks and their descriptions. Each identified risk would then be examined using the Risk Evaluation Form, which guides an analysis of the risk's likelihood and consequences both with and without existing controls, and determines the appropriate risk response. The Terminology section defines terms used in the risk evaluation process, and the Risk Level Matrix combines likelihood and consequences to determine an overall risk level.

Uploaded by

kamran
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

RISK IDENTIFICATION FORM

Decision:

Compiled by:

Date:

Area of Impact Identified Risk* Description of Risk

*Each risk identified in this table should now be separately examined in


accordance with the Risk Evaluation Form. A new Risk Evaluation Form will be
required for each risk identified.
RISK EVALUATION FORM

(Complete one for each identified risk)

Decision: Compiled By:


Identified Risk: Date:

1. PART A
Analysis of Risk Without Likelihood Consequence Risk Level
Controls

Description of Any Existing


Controls

Analysis of Risk with Likelihood Consequence Risk Level


Existing Controls

Risk Acceptance □ Accepted Reasons:

□ Accepted with Existing


Controls
□ Not Accepted
□ Not Accepted – Explore
Treatment Options
(complete Part B – see
over page)
2. PART B
Identify Possible Treatment
Options

Preferred Treatment Option Description Reasons:

Analysis of Risk with Preferred Likelihood Consequence Risk Level


Treatment Option

Risk Acceptance □ Accepted Reasons:

□ Not Accepted

Person to Implement Treatment

Time Frame for Implementation

Monitor Treatment

Time Frame for Review of Risk


Terminology
Adopting the following descriptors to rate risks will help you to uniformly analyse
risks:
 Likelihood

 Consequence

 Risk Level

 Control Effectiveness

LIKELIHOOD

Likelihood Interpretation

Almost Certain The event is expected to occur in most circumstances

Likely The event will probably occur in most circumstances

Moderate The event should occur at some time

Unlikely The event could occur at some time

Rare The event may only occur in exceptional circumstances


CONSEQUENCE

Consequences Interpretation

Extreme The consequences would stop the Project from reaching its key
strategic goals and objectives.

Very high The consequences would threaten the Project’s key strategic goals
and objectives.

Medium The consequences would not threaten the Project’s key strategic
goals and objectives, but would subject it to significant review.

Low The consequences would threaten a minor aspect of the Project’s


operations but it would not affect the overall performance of the
Project.

Negligible The consequences pose no material threat to the Project.

RISK LEVEL

Risk Level Description

Severe Risk Stops the Project from reaching its key strategic goals and
objectives.

High Risk Poses a threat to the Project’s key strategic goals and objectives.

Major Risk Likely to threaten the Project’s key strategic goals and objectives.

Significant Risk Unlikely to threaten the Project’s key strategic goals and objectives
but threatens a Project’s specific function.

Moderate Risk Likely to threaten a Project specific function.

Low Risk Unlikely to threaten a Project specific function.

Trivial Risk Risk has negligible impact on the Project. No resources allocated to
risk.
CONTROL EFFECTIVENESS

Control Definition
Effectiveness

High The control will prevent the risk and the Project will achieve its key
strategic goals and objectives

Medium The control will mitigate the risk and the Project will partially achieve
its key strategic goals and objectives

Low The control will allow the risk and the Project will not reach its key
strategic goals and objectives

RISK LEVEL MATRIX

Consequences

Likelihood Extreme Very High Medium Low Negligible

Almost certain Severe Severe High Major Significant

Likely Severe High Major Significant Moderate

Moderate High Major Significant Moderate Low

Unlikely Major Significant Moderate Low Trivial

Rare Significant Moderate Low Trivial Trivial

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