Risk Impact Measurement Criteria
Scale
1
2
3
5
Negligible
Departmental Service Plan
Internal
Operations
Limited disruption to
Little impact to objectives in
operations and service
service plan
quality satisfactory
People
Minor injuries
Short term disruption to
operations resulting in a
minor adverse impact on Minor Injury to those in the
partnerships and minimal Council’s care
reduction in service
quality.
Minor
Minor impact to service as
objectives in service plan
are not met
Moderate
Sustained moderate level
disruption to operations /
Considerable fall in service
Potential for minor physical
Relevant partnership
as objectives in service plan
injuries / Stressful
relationships strained /
are not met
experience
Service quality not
satisfactory
Major
Very High/Critical
Risk Management Matrix
Major impact to services as
objectives in service plan
are not met.
Significant fall/failure in
service as objectives in
service plan are not met
Serious disruption to
operations with
relationships in major
partnerships affected /
Service quality not
acceptable with adverse
impact on front line
services. Significant
disruption of core
activities. Key targets
missed.
Long term serious
interruption to operations /
Major partnerships under
threat / Service quality not
acceptable with impact on
front line services
Reputation
Public concern restricted
<£50k
to local complaints
Minor adverse local /
public / media attention
and complaints
£50k-£250k Minimal
effect on budget/cost
Adverse local media
public attention
£250k - £500k Small
increase on budget/cost:
Handled within the
team/service
Exposure to dangerous
Serious negative regional
conditions creating potential
criticism, with some
for serious physical or
national coverage
mental harm
Exposure to dangerous
conditions leading to
potential loss of life or
permanent physical/mental
damage. Life threatening or
multiple serious injuries
Financial
per annum / per loss
£500-£750k. Significant
increase in budget/cost.
Service budgets
exceeded
Prolonged regional and
national condemnation,
with serious damage to
the reputation of the
>£750k Large increase
organisation i.e. fronton budget/cost. Impact
page headlines, TV.
on whole council
Possible criminal, or high
profile, civil action
against the Council,
members or officers,
Rating Scale
1
2
3
4
5
Likelihood
Example of Loss/Event
Frequency
Probability %
Very
rare/unlikely
EXCEPTIONAL event.
This will probably never
happen/recur.
<20%
Unlikely
Event NOT EXPECTED.
Do not expect it to
happen/recur, but it is
possible it may do so.
20-40%
Possible
LITTLE LIKELIHOOD of
event occurring. It might
happen or recur
occasionally.
40-60%
Probable
/Likely
Event is MORE THAN
LIKELY to occur. Will
probably happen/recur,
but it is not a persisting
issue.
60-80%
Almost
Certain
Reasonable to expect
that the event WILL
undoubtedly
happen/recur, possibly
frequently.
>80%
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4
Description
Risk Likelihood Measurement Criteria
Impact
5
Very High/Critical
4
Major
3
Moderate
2
Minor
1
Negligible
5
10
15
20
25
4
8
12
16
20
3
6
9
12
15
2
4
6
8
10
1
2
3
4
5
1
Very Rare/Unlikely
2
Unlikely
Original /Current Risk Score
Expected Actions by Risk
and Action Owners
3
Possible/Likely
4
Probable/ Likely
5
Almost certain
Likelihood (Likelihood of risk occurring
over lifetime of objective (i.e. 12 mths)
Risk Tolerance/
Reporting Criteria
Tolerance Levels
White
1 to 2
Controls
Monitoring =
Escalation =
No action required
No action required
No action required
Existing controls may be sufficient. No additional controls are required unless
Accept Risk or Maintain they can be implemented at very low cost (in terms of time, money, and effort).
Actions to further reduce these risks are assigned low priority.
Controls
Low
3 to 6
Monitoring =
Escalation =
Review six monthly /Reporting with service area
Service area manager
Medium
8 to 12
Monitoring =
Escalation =
Continued Proactive Monitoring/Review at quarterly / Reporting to DMT
Business Partners / Relevant AD / DMT
Controls and further actions necessary. Substantial efforts should be made to
Further Action/Controls to reduce the risk. Arrangements should be made to ensure that existing controls
are maintained. The risk reduction measures should be implemented within a
reduce rating
defined time period.
High
15 to 25
Monitoring =
Escalation =
Continued Proactive Quarterly Monitoring / Report to CGC
Chief Officer / CMT / Lead Member
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Controls required but consider in light of 4 Ts-Consideration should be as to
Maintain Controls or
whether the risks can be lowered, where applicable, to a tolerable level , but the
Further Controls to reduce
costs of additional risk reduction measures should be taken into account (time,
rating
money and effort).