1 – 3 LOW Acceptable with adequate controls Coordinator oversight. Actions plans are not necessary. can be accepted by the relevant Program Manager. Coordinators 4 – 5 MODERATE Monitor regularly Acceptable with adequate controls Program Managers oversight. Action plan is necessary. Risk can be accepted by the relevant Divisional Manager. Program Managers 6 – 9 HIGH Management control required Only acceptable with excellent controls Divisional Manager oversight DM to define action to reduce the risk. Risk can be accepted by the Leadership Group. Divisional Managers 10 – 14 VERY HIGH Urgent management attention Only acceptable with excellent controls Leadership oversight. LG to define action plan to reduce the risk. Risk can only be accepted by the Risk Management Committee. Leadership Group 15 – 25 EXTREME Unacceptable and must be addressed immediately Serious of risk that requires Board oversight. Relevant Executive to define a plan immediately to mitigate the risk to an acceptable level. Risk can only be accepted by the Board. CEO Qualitative Measures of Consequence or Impact
Rank Health/safety/ environment Reputation/Image Finance Compliance/ legal Operational Performance & Social/Community 1 Insignificant No professional medical attention Individual client/contractor/ staff complaint. Issue resolved at local level Up to 5% variance against budget for any single program Individual complaint resolved without involvement of regulatory authorities Impact absorbed through routine operations Negligible effect on ability to meet demand Low, localized impact with no broader impacts 2 Minor Medical treatment sought without an insurance Recoverable in the Isolated incident. Negative media article. Low local exposure. Client/contractor/ staff complaint Revenue/cost impact 2 - 5% of THE NETWORK operational budget Regulatory authorities’ involvement. Incident resolved with only minor financial compensation/sanctions and without public exposure Minor delays in achieving some strategic objectives. Majority of objectives remain on Minor impact on ability to meet service demand 3 Moderate Medical treatment necessary/insurance claim/rehabilitation program/lost time injury of more than a day or illness Recoverable in the medium term. Isolated incident. Negative media coverage or industry criticism. Revenue/cost impact 5 - 10% of THE NETWORK operational budget Regulatory censure in public domain. One area of the business receives moderate financial compensation/penalties/ sanction s Criminal or proceedings instigated Administration of activity/program/ initiative be subject to significant review/change Disruption to normal operations with negative effect on meeting business plan targets or strategic goals Meeting service delivery demand delayed. Some effect across community 4 Major Single loss of life or 15% permanent impairment/loss of function, including Long-term impacts. Impacts across the organisation. Extensive public criticism. Revenue/cost impact 10 – 20% of THE Serious criminal or civil proceedings result in major adverse findings/ substantial penalties for Significantly reduced ability to achieve strategic objectives. Continued
mental health/ psychological impacts Metropolitan wide media exposure. Public embarrassment. Loss of credibility. NETWORK operational budget more than one area of the business function of activity/program/ initiative would be threatened Significant delays in meeting provision of services. Number of divisions heavily impacted. Mounting pressure and lack of trust in THE NETWORK to deliver core services Long delays in meeting service delivery. Metropolitan impacts socially, economically and financially. Environmental and health issues 5 Multiple or sequential loss of life/permanent disability due to intent or negligence Significant client withdrawal. Sustained media reporting. Very high multiple impacts across organisation/ sector. Single or multiple funding bodies withdraw all funding. Third party actions or criminal liability 50% cut in funding or rolling negative forecast Civil or criminal proceedings resulting in damages > 20% THE NETWORK operational budget and/or across many areas of the business. The Network Directors imprisoned in relation to The Network activities Failure to achieve one or more strategic objectives resulting in serious organisational impacts with potentially major flow on effects for external stakeholders/sector Potential loss of ability to sustain ongoing operations for a period of time Widespread social problems causing multiple impacts. Serious environmental and health issues