Unlikely 2 Low Low Moderate High High Possible 3 Low Moderate High High Extreme Likely 4 Low Moderate High Extreme Extreme Almost Certain 5 Moderate High High Extreme Extreme Risk Grading Criteria – Impact Ratings The Board of <INSERT ORGANISATION NAME> has resolved that risk be assessed over the following categories in relation to impact (consequence): Financial – impact on <INSERT ORGANISATION NAME> finances Operational – impact on provision of <INSERT ORGANISATION NAME> products, projects and services Brand/Reputational – impact on <INSERT ORGANISATION NAME> brand and general credibility Physical/Safety – impact on the safety and well-being of people Regulatory/Legal – impact on <INSERT ORGANISATION NAME> regulatory exposure People – impact on corporate knowledge / continuity (Impact ratings and criteria are shown on the next page) Impact levels and criteria are shown in the following table: Financial Operational Reputational Physical/ Safety Regulatory/ Legal People/ Participation IMPACT 5 Extreme A risk that can prove catastrophic or terminal for the whole organisation. More than $100,000 Unable to deliver product/ services in a region. Widespread migration of members to competitor organisation. Prohibited from delivering competition at any level. Collapse of organisation. Major inquiry into systemic misconduct. Wholesale resignation of Board Members or Senior Management. Death or total permanent disability of player/ participant due to compromised safety standards. Preventable death of a member of the public. Criminal prosecution of organisation and/or Board due to failure to comply with the law. Active participation declines by more than 25%. 4 High Risks which can significantly jeopardise some aspects of the organisation, but which will not result in organisational failure. More than $25,000 but less than $100,000 Widespread failure or loss of product/service standards. Increasing migration of members to competitor organisations’. Unable to deliver the National Championships. Loss of affiliated clubs/providers. Investigation of serious individual misconduct. Loss of significant skills from Board or Senior Management. Serious injury of player/ participant due to compromised safety standards. Preventable serious injury of member or public. Civil action against organisation and/or Board due to negligence. New regulations that impede operations. Active participation declines by more than 15%, but less than 25%.
3 Medium Risks which will cause some problems, but nothing too significant. More than $10,000 but less than $25,000 Moderate impact on product/service standards. Unable to deliver local sports competitions. Widespread discontent by Threats of withdrawal from affiliated clubs/providers. Failure of prominent branded project or product. Failure of a club or provider. Individual or group misconduct. Sustained public criticism of the organisation. Systemic injuries of players/ participants and/or public. Increased frequency of near misses. Regulatory/ police investigation with adverse findings against organisation and/or Board. Net active participation declines by more than 5%, but less than 15%. 2 Minor Any risks which will have just a mild impact, but should be addressed. More than $1,000 but less than $10,000 Minor impact on product/service delivery. Competitive threats to membership. Constrained capacity to meet the demands of existing or new members/ participants. Localised negative coverage. Minor injuries of players/ participants and/or public. Regulatory/ police investigation of organisation and/or Board without adverse findings. Net active participation declines by more than 0%, but less than 5%. 1 Risks which do not pose any significant threat and which can be left unmitigated without special action. Less than $1,000 Very minor, temporary product/service disruption. Media interest in local issue. Insignificant injuries of players /participants and/or public. Persistent complaints against organisation and/or Board. Stable net active membership. Risk Grading Criteria – Likelihood Ratings The Board of <INSERT ORGANISATION NAME> has resolved that the following probability thresholds and ratings in relation to assessing risks be used. LIKELIHOOD 5 Almost Certain Will probably occur more than once withn 12 months 4 Likely High probability that will occur at least once within next 24 months 3 Possible Reasonable likelihood that could occur more than once in 24 months 2 Unlikely Not likely to occur within next 24 months 1 Rare Not impossible but highly unlikely Risk Tolerance Levels The Board of <INSERT ORGANISATION NAME> has resolved that the following risk tolerance thresholds be used in relation to the actions <INSERT ORGANISATION NAME> personnel shall take in relation to managing risks. RISK LEVEL REQUIRED ACTIONS