Friday, September 24, 2010

RISK IMPACT CATEGORIES

As we embarked on studying Risk Management as part of our curriculum, please allow me to share with our class part of it that I have a knowledge of. This is about the Risk Impact Categories. Through the course of our subject, we will learn the gist on How to Manage Risk in order to avoid any unpleasant effect. Moreover, equally important on our learning process is the appreciation of Risk Impact and its categories.

Risk Impact - is the effect of risk when it happened; it commonly includes an estimate value loss, possible assign monetary value and a criteria on its severity.

Risk Impact Category:

Insignificant - low financial lost; no injury to personnel; no or very minor damage to property; no operational delay or interruption, no media coverage.

Minor - low to medium financial lost; minor injury, no lost time; limited loss or damage to property; up to one day operational delay or interruption; very limited media coverage.

Limited - medium to substantial financial loss; several injuries, short time lost; significant loss or damage to property; up to one week of operational delay or interruption; minor scrutiny from media groups.

Serious - substantial to major financial loss; serious injuries or fatality, long time lost; Major loss or damage to property; between 1 - 2 weeks of operational delay or interruption; substantial media attention or scrutiny.

Severe - huge financial loss, multiple injuries or fatalities, very long time lost; catastrophic loss or damage to property, more than two weeks of operational delay or interruption; hostile media scrutiny or attacks.

Through Risk Management, cited categories of Risk Impact can be addressed thoroughly and individually.

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