Risk rating assessment guidance Consequences of risks Applicants should consider the relative significance of a risk eventuating, by ranking the consequence of the risk in accordance with the guidelines provided in Table 3 below. 3 : Guidelines on Consequences of Risks Potential Risk Insignificant Minor Moderate Major Severe Categories - Minor Milestone - Milestone moderately - Objective delayed by more - Project Objective not able to Objective - Negligible impact delays. delayed than 20% of original timeframe. be achieved. on delivering - Objective delayed by less - Milestone significantly project than 20% of original delayed or not achieved. timeframe. - Some adverse publicity. - External scrutiny / - Serious loss of stakeholder - Complete loss of stakeholder Reputation - Internal impact - Internal review of criticism. confidence. confidence. only. existing policies and - Substantial adverse - Adverse national reports - Intense public, political and - No adverse practices instigated. publicity or loss of some on failings, inefficiency or scrutiny/criticism evidenced publicity. - Minor loss of stakeholder confidence. inadequacy, causing serious by front-page headlines, adverse - No stakeholder stakeholder confidence. - Risk event requires public embarrassment to ARENA and international media reports conflict. ARENA response. Government. and/or sustained television - Breach of Commonwealth law coverage. and regulations (including - Major breach of proposed standards). funding agreement with ARENA. - Between 1% and 2.5% - Between 2.5% and 10% - Between 10% and 20% impact - <1% impact on Financial - Greater than 20% impact on impact on budget. impact on budget. on budget. budget. budget. - Staff members sustains - Skilled staff shortages - Unable to attract any skilled - Death or serious permanent WHS - member minor injury requiring lead to significant staff. disablement of staff or clients. sustains minor cuts medical attention additional costs or delays. - Work accident leads to or abrasions - Staff absences increase - Work accident leads to extensive or serious staff/client requiring first aid sufficiently to cause staff/client hospitalisation. injury or temporary treatment. delay. disablement.
Risk rating assessment guidance Consequences of risks Applicants should consider the relative significance of a risk eventuating, by ranking the consequence of the risk in accordance with the guidelines provided in Table 3 below. 3 : Guidelines on Consequences of Risks Potential Risk Categories Insignificant Minor Moderate Major Severe Objective - Negligible impact on delivering project - Minor Milestone delays. - Milestone moderately delayed - Objective delayed by less than 20% of original timeframe. - Objective delayed by more than 20% of original timeframe. - Milestone significantly delayed or not achieved. - Project Objective not able to be achieved. Reputation - Internal impact only. - No adverse publicity. - No stakeholder conflict. - Some adverse publicity. - Internal review of existing policies and practices instigated. - Minor loss of stakeholder confidence. - External scrutiny / criticism. - Substantial adverse publicity or loss of some stakeholder confidence. - Risk event requires public ARENA response. - Serious loss of stakeholder confidence. - Adverse national reports on failings, inefficiency or inadequacy, causing serious embarrassment to ARENA and Government. - Breach of Commonwealth law and regulations (including standards). - Complete loss of stakeholder confidence. - Intense public, political and scrutiny/criticism evidenced by front-page headlines, adverse international media reports and/or sustained television coverage. - Major breach of proposed funding agreement with ARENA. Financial - <1% impact on budget. - Between 1% and 2.5% impact on budget. - Between 2.5% and 10% impact on budget. - Between 10% and 20% impact on budget. - Greater than 20% impact on budget. WHS - member sustains minor cuts or abrasions requiring first aid treatment. - Staff members sustains minor injury requiring medical attention - Staff absences increase sufficiently to cause delay. - Skilled staff shortages lead to significant additional costs or delays. - Work accident leads to staff/client hospitalisation. - Unable to attract any skilled staff. - Work accident leads to extensive or serious staff/client injury or temporary disablement. - Death or serious permanent disablement of staff or clients.