Risk Assessment

Heat Maps 21 22 23 24 25

Frequent 5

16 17 18 19 20
Likely

4
Likelihood

11 12 13 14 15
Possible

6 7 8 9 10
Unlikely

1 2 3 4 5
Remote

1 2 3 4 5
Negligible Minor Moderate Significant Disastrous
1 Business Impact
 Risk Assessment Methodology

Likelihood of Occurrence
Assessment Description Indicators
5 Frequent ¾potential of occurring every month;
¾has occurred in the last month;
¾inherent to this type of operation due to external influences;
¾expected to occur at least once a month.
4 Likely ¾potential of it occurring several times within the year;
¾has occurred within the last two years;
¾typical of operations of this type due to external influences;
and
¾history of occurrence in the organisation.
3 Possible ¾could occur more than once within the year;
¾has occurred within the last five years; and
¾can be difficult to control due to some external influences.

2
 Risk Assessment Methodology

Likelihood of Occurrence
Assessment Description Indicators
2 Unlikely ¾potential of occurring atleast once in a year;
¾has occurred in the last year; and
¾could be affected due to external influences, but can be
mitigated through appropriate controls.
1 Remote ¾potential of occurring once in a year or once in two years;
¾has not occurred in the last year;
¾controllable external influences; and
¾ no history of occurrence in the organisation.

3
 Risk Assessment Methodology

Business Impact
Assessment Description Indicators
5 Disastrous ¾ Financial impact on the organisation is likely to create more than 30%
impact on sales or EBIT;
¾Catastrophic impact on the organisation’s viability or achievement of
its strategic/operational objectives – potential collapse of the company, or
¾Discontinuance of a business unit or business operations and processes
interruptions for 2 months
4 Significant ¾Financial impact on the organisation is likely to create 10-30% impact
on sales or EBIT, or
¾Substantial impact on the organisation’s viability or achievement of its
strategic/operational objectives – potential disruption of the company’s
operations, or
¾Suspension of a business unit or business operations and processes
interruptions for a month

3 Moderate ¾Financial impact on the organisation is likely to create 5-10% impact

on sales or EBIT, or
¾Average impact on the organisation’s viability or achievement of its
strategic/operational objectives, or
¾ Minor interruption in the operations of the company
4
 Risk Assessment Methodology

Business Impact
Assessment Description Indicators
2 Minor ¾Financial impact on the organisation is likely to create 1-5% impact on
sales or EBIT, or

¾Possibility of impacting the organisation’s achievement of its

strategic/operational objectives

1 Negligible ¾Financial impact on the organisation is likely to create less than 1%

impact on sales or EBIT loss