Page 143 - DMGT304_EVENT_MANAGEMENT

Event Management

Notes 6.5 Risk Analysis and Prioritizing

The matrix below is adapted from the Risk Management Standard. It can be used to record a
priority rating for each risk identified in the risk audit. Each risk identified must be evaluated in
terms of:
The probability of occurrence (the likelihood).

The severity of the consequence should the risk actually occur.
A risk exposure that has both a high likelihood and a high severity of consequence should
be given the greatest consideration for elimination or control.

A risk that is both low in likelihood and low in severity can easily be retained and self-
funded.
Table 6.1: Risk Analysis

Likelihood Consequences
Insignificant 1 Minor 2 Moderate 3 Major 4 Catastrophe 5
Almost Certain H H E E E
Is expected to occur
at most times
Likely M H H E E
Will probably
occur at most times
Moderate L M H E E
Might occur at most
times
Unlikely L L M H E
Could occur
at sometime
Rare L L M H H
May occur in
rare
Legend

E Extreme Risk Immediate action required
H High Risk Senior management attention needed
M Moderate Risk Management responsibility must be specified
L Low Risk Manage by routine procedures

6.5.1 Documenting Risks

These are basically of two kinds:
1. The Risk Register
2. The Risk Treatment Schedule

Risk Register

The Risk Register, also known as a Risk Log

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