ALARMMy organisation uses a risk matrix to measure risk impact and we would like to review and update the financial column as the values don't really reflect the current potential impacts and the organisation's resilience to those impacts. My questions is - how have other organisations measured or specified levels of financial impact - is it a percentage of annual revenue budget (or reserves if you have any) or is it pegged to a different measurement or value? And how often do you review and revise the values and/ or the approach you take? Thank you.
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Hi
We use the following:
Marginal 0.5% of either a Capital or Revenue Budget
Moderate 5% of either a Capital or Revenue budget
Critical 10% of either a Capital or Revenue budget
Catastrophic >20% of either a Capital or Revenue Budget
The methodology is reviewed annually as part of the RM strategy
Hope that helps
Hi Joanne,
We have:
*Insignificant - Negligible organisational financial loss (£< 1k)
*Minor - Minor organisational financial loss (£1-10k)
*Moderate - Significant organisational financial loss (£10-100k)
*Major - Major organisational financial loss (£100k-1m)
*Extreme - Severe organisational financial loss (£>1m)
We've had these values for a while now and they seem to work. We look at all the risk documentation every two years.
Hi Joanne,
My organisation has identified different values of loss in £ terms for corporate/ directorate/ departmental level risk registers. I guess the actual values depend on the size of your budget in the first place, but for Corporate ours are:-
1 Insignificant - Negligable
2 Minor - £<50k
3 Moderate £50k-£200k
4 Major - £200k-£500k
5 Catastrophic - £500k+
We review our matrix as part of an annual risk review. Your post has got me thinking that perhaps expressing this as a % of budget may be useful as well. One for me to think about.