Hi all,
When risks are identified and controls need to be implemented what are the different prioritization methods employed. In other words how would you categorize a risk as a high, medium or low priority?
Thanks,
AFD
Risk Prioritization
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Re: Risk Prioritization
Hi AFD,
Risk prioritization is the process of determining which risk you should act upon first. This should be based on the likelihood of a risk and the impact that it would make within your place of work.
Risk prioritization can be achieved by evaluating the risks against your business to determine which are more likely to occur and which will have a higher impact. A risk prioritization matrix can be used for evaluation.
Risk Matrix example, you can set up your own.
RISK EVALUATION
This is calculated by multiplying the likelihood against the consequence e.g. taking a likelihood of 1, which is classified as Unlikely and multiplying this against a Potential Consequence of 2, which is classified as Significant Injury, would give you and overall Risk Rating of 2, which would result in an overall evaluation as a low risk.
1 to 2 = Low risk
Low risks are largely acceptable, monitor periodically to determine situation changes which may affect the risk, or after significant changes
3 to 4 = Medium risk
Medium risks should only be tolerated for the short-term and then only whilst further control measures to mitigate the risk are being planned and introduced, within a defined time period.
6 = High risk
High risks activities should cease immediately until further control measures to mitigate the risk are introduced. The continued effectiveness of control measures must be monitored periodically.
9 = Extreme Risk
Work should not be started or continued until the risk has been mitigated. Immediate action is required to reduce exposure. A detailed mitigation plan must be developed, implemented and monitored by senior management to reduce the risk before work is allowed to commence
Risk prioritization is the process of determining which risk you should act upon first. This should be based on the likelihood of a risk and the impact that it would make within your place of work.
Risk prioritization can be achieved by evaluating the risks against your business to determine which are more likely to occur and which will have a higher impact. A risk prioritization matrix can be used for evaluation.
Risk Matrix example, you can set up your own.
RISK EVALUATION
This is calculated by multiplying the likelihood against the consequence e.g. taking a likelihood of 1, which is classified as Unlikely and multiplying this against a Potential Consequence of 2, which is classified as Significant Injury, would give you and overall Risk Rating of 2, which would result in an overall evaluation as a low risk.
1 to 2 = Low risk
Low risks are largely acceptable, monitor periodically to determine situation changes which may affect the risk, or after significant changes
3 to 4 = Medium risk
Medium risks should only be tolerated for the short-term and then only whilst further control measures to mitigate the risk are being planned and introduced, within a defined time period.
6 = High risk
High risks activities should cease immediately until further control measures to mitigate the risk are introduced. The continued effectiveness of control measures must be monitored periodically.
9 = Extreme Risk
Work should not be started or continued until the risk has been mitigated. Immediate action is required to reduce exposure. A detailed mitigation plan must be developed, implemented and monitored by senior management to reduce the risk before work is allowed to commence
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