TL12 Project – Definitions

Here is the Definitions for the Risk Assessment & Evaluation steps in the Risk Management process for the Timor Leste 2012 Project:

Risk Assessment. The risk level is determined by the consequence and likelihood of the risk occurring. These are defined in the following tables.

Risk Consequence Definitions:

Rating

Time

$$

Reputation

Safety

Severe Project unable to function for more than 1 week – project continuity threatened Over 10% of Project Funds Severe damage to reputation and National media coverage 1+ deaths
Major Project unable to function for between 2 days and 1 week – project activities cancelled 5%-10% of Project Funds Severe damage to reputation. Local outrage and local media coverage Major injury requiring inpatient medical attention
Moderate Project unable to function for 1 to 2 days – project activities suspended 2%-5% of Project Funds Adverse media coverage

Criticism by significant segment of local community

Minor injury requiring Outpatient medical attention
Minor Project unable to function for less than 1 day – project activities rescheduled 1%-2% of Project Funds Criticism by minor segment of local community Minor injury not requiring medical attention
Insignificant Project unable to function for up to 2 hours – Project activities delayed Up to 1% of Project Funds Internal criticism Nil injury

 

Risk Likelihood Definitions:

Scale

Criteria to be used to establish rating

Almost Certain

Very likely to occur.  The event is expected to occur during the activity.

Likely

Likely to occur more than once during the activity but not an ‘everyday’ occurrence. Preconditions will arise at times throughout the period.

Possible

Likely to occur at least once but not expected to occur much more than this during the activity.

Unlikely

Not likely to occur during the activity.  A small, but remote chance of occurrence due to circumstances/situations that could arise.

Remote

Would only occur in highly exceptional circumstances that are unlikely to exist during the activity.  Extremely remote chance of occurrence during the activity.  ‘Once in a lifetime’ event.

 

The overall risk level is a combination of the consequence and the likelihood. Please see the table below for the Risk Rating Level Definition:

CONSEQUENCE
LIKELIHOOD

Insignificant

Minor

Moderate

Major

Severe

Remote

5

(Negligible)

5

(Negligible)

4

(Low)

4

(Low)

3

(Significant)

Unlikely

5

(Negligible)

4

(Low)

4

(Low)

3

(Significant)

3

(Significant)

Possible

4

(Low)

4

(Low)

3

(Significant)

3

(Significant)

2

(High)

Likely

4

(Low)

3

(Significant)

3

(Significant)

2

(High)

2

(High)

Almost Certain

3

(Significant)

3

(Significant)

2

(High)

2

(High)

1

(Extreme)

 

Evaluate Risks

The risk level of each individual risk will determine the required action for that risk. The table below defines the requirements for each risk level:

Risk Index

Risk Level

Endorsing Authority

Management action required

1

Extreme

Chief Commissioner

Intolerable – Exposes to the threats would normally be immediately discontinued. Urgent and immediate action required. Chief Commissioner to report to the BEC immediately for intervention and advice

2

High

International Commissioner

Intolerable without Treatment – Treatments are to be documented and implemented prior to and during the activity. Leader in Charge are to monitor and report to International Commissioner on effectiveness of the proposed treatments.

3

Significant

Leader in Charge

Tolerable with Continual Review – Treatments are to be documented and implemented prior to and during the activity. Line Leaders are to monitor and report to Leader in Charge on effectiveness of the proposed treatments.

4

Low

Line Leader

Tolerable with Periodic Review – Treatments are to be documented and implemented prior to and during the activity.

5

Negligible

Line Leader

Acceptable with Periodic Review – Line Leaders are to ensure that Periodic reviews of the risk are conducted and documented.

 

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