Understand Each Risk

Before you can make a judgement about the probability of a risk event, or the impact it could have, you need to understand the features of the risk event – how it could arise, what the consequence(s) could be, what the options might be for keeping the risk exposure within your tolerable loss range, and so on.

And undertaking risk management processes is futile unless your attempts to measure the impact and probability aspects are based on some sort of reasoning.  Of course, the more reliable the reasoning, the better your measurements.

This Template Risk Schedule was adapted from the indicative examples 10.1 and 10.2 in HB 436 Risk Management Guidelines, Companion to AS/NZS 4360:2004.   It is provided to help you focus on:

1. Defining the specific risk exposure, as distinct from a more generalised hazard (which may give rise to various separate exposures).
2. Measuring the risk exposure.
3. Considering your options in light of the information now available.