Risk Matrix Chart

Risk Matrix

The following chart shows where, and what category/colour the risk will fall in dependent on the scores. Red being the most severe and green being the least. The scores within the chart are

multiples of the likelihood and impact,

e.g. (Likelihood of) 4 x (Impact of) 8 = (Risk Score of) 32

Assessing Impacts

Impact

Impact Title

The Board feels most concerned about carrying this risk. The

Example description

consequences will have a severe impact on the delivery of a key

Score

Severe

priority and comprehensive management action is required

Annoyance but does not disrupt service: Minor injury to an individual; Financial loss

1

Negligible

immediately.

under £50k: Isolated service user complaints contained within unit/section; Litigation

claim or fine less than £50k; Failure to achieve a core team plan objective

The Board feels concerned about carrying this risk. The

Minor impact on service; Minor injuries to several people; Financial losses between

2

Low

consequences of the risk materialising would be significant, but

£50k-100k, Isolated service user complaints contained within department; Litigation

Significant

not severe. Some immediate action is required plus the

claim or fine between £50k -100k: Failure to achieve several team plan objectives

development of an appropriate action plan.

including a core objective

Service disruption; Major injury to an individual; Financial losses between £100k-1

4

Medium

The Board is uneasy about carrying this risk. Consequences of

Million; Adverse local media coverage. Lots of service user complaints; Litigation

the risk are not significant and can be managed through

claims or fine between £100k - £1Million; Failure to achieve one or more strategic

Material

plan objective

contingency plans. Action plans can be developed later to

Significant service disruption; major/disabling injury to employee, service user or

8

High

address the risk.

other stakeholder; financial losses between £1Million-£5Million: adverse national

media coverage; litigation claim or fine between £1Million-£5Million; Failure to

The Board is content to carry this risk. Consequences of the risk

achieve one or more strategic objective

Manageable

are considered relatively unimportant. The status of the risk

Total service loss for a significant period; fatality to employee, service user or other

16

Very High

should be reviewed periodically.

stakeholder; financial loss in excess of £5 Million; National publicity more than 3

days. Possible resignation of leading member or chief officer; Multiple civil or

criminal suits. Litigation claim or fine above £5 Million; Failure to achieve a major

corporate objective in the Corporate Plan

Impacts

Impacts

Assessing likelihood

Negligible

Negligible

Low

Low

Medium

Medium

High

High

Very High

Very High

(1)

(1)

(2)

(2)

(4)

(4)

(8)

(8)

(16)

(16)

Scale

Scale

Description

Description

Likelihood of Occurrence

Likelihood of Occurrence

Almost certain

Almost certain

5

5

10

10

20

20

40

40

80

80

• Extremely unlikely or virtually impossible

• Extremely unlikely or virtually impossible

(5)

(5)

1

1

Rare

Rare

• Less than 5% chance of happening

• Less than 5% chance of happening

• Unlikely to occur in a 50 year period

• Unlikely to occur in a 50 year period

Likely

Likely

4

4

8

8

16

16

32

32

64

64

• Could occur at some point

• Could occur at some point

2

2

Unlikely

Unlikely

• 6% to 20% chance of happening

• 6% to 20% chance of happening

(4)

(4)

• Unlikely to occur within a 10 year period

• Unlikely to occur within a 10 year period

• Fairly likely to occur

• Fairly likely to occur

Possible

Possible

3

3

6

6

12

12

24

24

48

48

3

3

Possible

Possible

• 21% to 50% chance of happening

• 21% to 50% chance of happening

(3)

(3)

• Likely to occur once within a 10 year period

• Likely to occur once within a 10 year period

• Will probably occur in most circumstances

• Will probably occur in most circumstances

Unlikely

Unlikely

2

2

4

4

8

8

16

16

32

32

4

4

Likely

Likely

• 51% to 80% chance of happening

• 51% to 80% chance of happening

(2)

(2)

• Likely to occur once within a one year period

• Likely to occur once within a one year period

• Expected to occur in most circumstances

• Expected to occur in most circumstances

Rare

Rare

1

1

2

2

4

4

8

8

16

16

5

5

Almost certain

Almost certain

• More than 80% chance of happening

• More than 80% chance of happening

• Likely to occur within 3 months

• Likely to occur within 3 months

(1)

(1)