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RMIT Risk Management Procedure TABLE 1: Likelihood and Consequence Criteria

Document: Consequence likelihood and matrixAuthor: Darren Bass

Save Date: 01/12/2010Page 1 of 1

Consequence Likelihood

The following definitions have been used to describe the consequences ofa risk occurring:

The following definitions have been used to describepositive outcomes / opportunities :

The following definitions should be used to describe the likelihoodof the risk / opportunity occurring.

Catastrophic/ Outstanding

Financial impact exceeds $30M(1)

/ 10% of project budgetMultiple deathsVery high client sensitivityIrreparable damage to Universitys image and reputationCessation of business due to non-compliance withregulationsBusiness and Strategic objectives unable to be achieved

Huge financial gain (exceeding $30M)Significantly enhanced image and reputationSignificantly exceeds Business and Strategic objectives

AlmostCertain

The event is expected to occur in mostcircumstancesRisk has more than a 75% chance of occurringWill occur within the next six months

Major

Financial impact $20M-$30M(1)

/ 5-10% of project budget

Single death and/or multiple significant injuriesSignificant client sensitivitySignificant damage to Universitys image and reputationRestriction of business due by regulatorsSignificant impact on Business and Strategic objectives

Major financial gain ($20M-$30M)

Enhanced image and reputationSignificant contribution towards achieving Business andStrategic objectives

Likely The event will probably occur in most circumstances

Risk has 50-74% chance of occurringWill occur within 18 months

Moderate

Financial impact $5M-$20M(1)

/ 1-5% of project budgetMultiple injuriesModerate client sensitivityMedium damage to Universitys image and reputationFines and penalties by regulators (e.g. delay in paymentto client)Moderate impact on Business and Strategic objectives

High financial gain ($5M-$20M)Some enhancement to reputationModerate contribution towards achieving Business andStrategic objectives

Possible The event could occur at some timeRisk has 25-49% chance of occurringWill occur within 36 months

Minor

Financial impact less than $5M(1)

/ 1% of project budgetSingle injuryLow impact on client sensitivityMinimal damage to Universitys image and reputation

Censure by regulatorsMinimal impact on Business and Strategic objectivesRisk consequences are dealt with by routine operations

Some financial gain (