Purpose of this presentation At the end of this session, you should know how to: determine likelihood of risk
assess the consequences of risk
evaluate and prioritise risk
determine risk treatment options
develop an action plan for treating risks.
NIT Presentation 3 Version 05/14
Likelihood of risk Rare May occur only in exceptional circumstances.
Unlikely Event is unlikely to occur, but is possible
during the life of the project.
Possible Event could occur during the life of the
project.
Likely Event likely to occur once or more during the
life of the project.
Frequent Event will occur many times during the life of
the project.
NIT Presentation 3 Version 05/14
Consequence of risk Catastrophic Regulatory intervention.
Breach of licenses, legislation, regulation or
Major mandated standards.
Moderate Adverse news in state media.
Minor Breach of internal procedures or guidelines.
Public awareness may exist, but there is little
Insignificant public concern.
NIT Presentation 3 Version 05/14
Evaluate risk
Extreme IMMEDIATE senior management action.
High Action plan needed, allocated responsibilities.
Medium Risk requires only monitoring and review.
Low Risk accepted - but not ignored.
NIT Presentation 3 Version 05/14
Risk treatments
Can you eliminate the Yes - then eliminate the risk.
risk? Yes - then reduce the risk (e.g. by Can you reduce the substitution). risk? Yes - then isolate the risk (e.g. with guards Can you isolate the and barriers). risk?
Can you reduce the risk Yes - then introduce administrative controls by control? (e.g. safe operating procedures).
Then provide personal According to AS/NZ standard.
protection.
NIT Presentation 3 Version 05/14
Risk action plan Should include: the risk risk rating treatment activity or controls roles and responsibilities for those involved timeline monitoring arrangements.