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Page 1 of 4September 2012
Risk Analysis and Action Plan
OPERATIONAL RISKS
INSTRUCTIONS FOR USING RISK
ASSESSMENT TEMPLATE
When analysing operational risk focus on the below critical
areas:
1. People (OH&S)
2. Legal Liability
3. Organisational (ie management, communication)
4. Financial
5. Reputation
6. Membership
7. Child Protection
8. Property/Equipment
Step 1
Identify the hazards associated with operations
List them in the fi rst 2 columns
Step 2
Read tables 1,2,3 below to work out
• the likelihood of the hazard occurring
• the consequence of the hazard occurring
• the risk rating of the hazard
Firstly, work out the likelihood using table 1 and reading the
statements and deciding the most appropriate likelihood;
Secondly, work out the consequences of the risk using the
consequences rating in table 2
Thirdly, using the Risk rating table (table 3) see what risk
rating your likelihood and consequences shows. Record it
under Step 2 column on your template.
Step 3
Work out what the best control measure is to reduce the risk
of the process, policy or procedure. Record in controls in
your Step 3 column on your template.
Step 4
Repeat Step 2 and see if your risk rating has reduced to a
level that the organisation is prepared to accept. Record
your rating in your Step 4 column of your template.
Step 5
Utilise the table below to identify the order in which to
address the risks. The table assists you to prioritise.
RISK PRIORITY ACTION
One
(Catastrophic)
A catastrophic risk is one that must
be dealt with immediately. SGGO
and GGA Board’s normally monitor
catastrophic Risks.
Two
(High)
A high risk is one that should
be dealt with after attending to
catastrophic risks.
Three
(Moderate)
A moderate risk is one that can
be dealt with by applying routine
procedures.
Four
(Low)
A low risk may be accepted but
should be monitored periodically.