Risk Management Plan Page 9
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10Appendix A – Example Risk Assessment Matrix
Probability of Occurrences
Catastrophic
Critical
Moderate Minor Negligible
Definition
Meaning
Value
(A)
(B)
(C)
(D)
(E)
• Occurs
5
frequently
• Will be
continuously
experienced
Frequent
5A
5B
5C
5D
5E
unless
action is
taken to
change
events
• Occur less
4
frequently if
process is
corrected
• Issues
identified
with minimal
Likely
4A
4B
4C
4D
4E
audit activity
• Process
performance
failures
evident to
trained
auditors or
regulators
• Occurs
3
sporadically
• Potential
issues
Occasional
3A
3B
3C
3D
3E
discovered
during
focused
review.
•
Unlikely to
2
occur
•
Minimal
issue
Seldom
2A
2B
2C
2D
2E
identification
during
focused
review
•
Highly
1
Improbable
1A
1B
1C
1D
1E
unlikely to
occur
Risk Levels:
• Risk is High for codes 5A, 5B, 5C, 4A, 4B, 3A
• Risk is Medium High for codes 5D, 5E, 4C, 3B, 3C, 2A, 2B
• Risk is Medium Low for codes 4D, 4E, 3D, 2C, 1A, 1B
• Risk is Low for codes 3E, 2D, 2E, 1C, 1D, 1E
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