Finance including Small loss Risk of Loss of 0.1–0.25 per cent of budget Loss of 0.25–0.5 per cent of budget Uncertain delivery of key objective/Loss of Non-delivery of key objective/ Loss of >1 per claims claim remote 0.5–1.0 per cent of budget cent of budget Claim less than £10,000 Claim(s) between £10,000 and £100,000 Claim(s) between £100,000 and £1 million Failure to meet specification/ slippage Purchasers failing to pay on time Loss of contract / payment by results Claim(s) >£1 million Service/ business Loss/interruption Loss/interruption of >8 hours Loss/interruption of >1 day Loss/interruption of >1 week Permanent loss of service or facility interruption of >1 hour/ Environmental Minimal or no Minor impact on environment Moderate impact on environment Major impact on environment Catastrophic impact on environment impact impact on the environment Table 2 Likelihood score (L) What is the likelihood of the consequence occurring? The frequency-based score is appropriate in most circumstances and is easier to identify. It should be used whenever it is possible to identify a frequency. Likelihood score 1 2 3 4 5 Descriptor Rare Unlikely Possible Likely Almost certain Frequency This will probably Do not expect it to Might happen or Will probably Will undoubtedly never happen/recur happen/recur but it recur occasionally happen/recur but it happen/recur, possibly How often might is possible it may do is not a persisting frequently it/does it happen so issue Table 3 Risk scoring = consequence x likelihood ( C x L ) Likelihood Likelihood score 1 2 3 4 5 Rare Unlikely Possible Likely Almost certain 5 Catastrophic 5 10 15 20 25 4 Major 4 8 12 16 20 3 Moderate 3 6 9 12 15 2 Minor 2 4 6 8 10 1 Negligible 1 2 3 4 5
Finance including claims Small loss Risk of claim remote Loss of 0.1–0.25 per cent of budget Claim less than £10,000 Loss of 0.25–0.5 per cent of budget Claim(s) between £10,000 and £100,000 Uncertain delivery of key objective/Loss of 0.5–1.0 per cent of budget Claim(s) between £100,000 and £1 million Purchasers failing to pay on time Non-delivery of key objective/ Loss of >1 per cent of budget Failure to meet specification/ slippage Loss of contract / payment by results Claim(s) >£1 million Service/ business interruption Environmental impact Loss/interruption of >1 hour/ Minimal or no impact on the environment Loss/interruption of >8 hours Minor impact on environment Loss/interruption of >1 day Moderate impact on environment Loss/interruption of >1 week Major impact on environment Permanent loss of service or facility Catastrophic impact on environment Table 2 Likelihood score (L) What is the likelihood of the consequence occurring? The frequency-based score is appropriate in most circumstances and is easier to identify. It should be used whenever it is possible to identify a frequency. Likelihood score 1 2 3 4 5 Descriptor Rare Unlikely Possible Likely Almost certain Frequency How often might it/does it happen This will probably never happen/recur Do not expect it to happen/recur but it is possible it may do so Might happen or recur occasionally Will probably happen/recur but it is not a persisting issue Will undoubtedly happen/recur, possibly frequently Table 3 Risk scoring = consequence x likelihood ( C x L ) Likelihood Likelihood score 1 2 3 4 5 Rare Unlikely Possible Likely Almost certain 5 Catastrophic 5 10 15 20 25 4 Major 4 8 12 16 20 3 Moderate 3 6 9 12 15 2 Minor 2 4 6 8 10 1 Negligible 1 2 3 4 5
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