Annex I - Risk Rating Matrix

  Impact Risk Rating = Impact X Likelihood

  5 4 3 2 1 Green: Low
Yellow: Moderate
5 25 20 15 10 5 Red: High

4 20 16 12 8 4
Li 3 15 12 9 6 3
ke
lih 2 10 8 6 4 2
oo
d 1 5 4 3 2 1

RISK RATING SCHEME

Impact Likelihood
Ratin
Rating
g Description Description
Scale
Scale

Extreme - can affect business continuity e.g. legal

Almost certain – very high
sanctions; can result to severe and irreversible
5 5 probability of occurrence is
damage to company’s reputation; loss of market
expected
position or loss of customer

Major - can result to significant financial losses or Likely – probability of occurrence

4 4
can pose a threat to operations and service delivery is expected

Moderate – the probability of

Moderate - Can affect effectiveness and efficiency of
3 3 occurrence is reasonably
business operations in a certain degree
expected

Minor - Minimal impact to the company’s business Unlikely – probability of

2 2
and operations; can be possibly accepted as it is occurrence is low

Rare - Probability of occurrence

1 Insignificant - No impact at all 1 is exceptionally low; almost not
possible to occur at all