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assessment methodology

We have developed a sophisticated approach to risk assessment, which takes account of financial and non-financial impacts and enables you to:

• Identify the largest risks and prioritise them for action
• Aggregate risks to a total that can be compared with the agreed risk appetite
• Create a strong link between the risks and the organisation's business plan by using the plan as the basis for assessing risk impacts, including financial loss, regulatory action, decline in growth / business volume and the effect on residents / communities.

We can display the results of the risk assessments on a 5x5 matrix, such as the one displayed below. Risks on the same diagonal from top-left to bottom-right will have the same expected loss. In other words, over the long term, the aggregate effect of these risks would be about the same. However, since risks with a high or very high impact could threaten the ability of the organisation to survive, we give these a higher priority, as is shown by the colour coding of the risk matrix.

For more information please contact us.