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Enterprise Risk Management

Resources and Tools

Risk Assessment form

The Risk Assessment form is used to collect University wide information about risks so that the risk culture and appetite can be understood.

Risk Map

A risk map, or heat map, is a visual tool to help understand the likelihood and impact of a risk. Risks requiring immediate focus appear in the red area, medium-focus risks are in the yellow area, and low-focus risks are in the green area. The most important risks are highly likely and highly impacting; the least important risks are highly unlikely and not very impacting. By plotting multiple risks, actionable risk mitigation priorities may be established.

Calculate Risk Score

Using the table below, assess the financial and/or reputational impact.

IMPACT*

Score

Definition
(Financial / Reputational)

5

Greater than $50 million or
Extreme reputational impact

4 $25 million to $50 million or
High reputational impact

3

$5 million to $25 million or
Medium to low reputational impact

2

$100,000 to $5 million or
Low to no reputational impact

1

Less than $100,000 or
No reputational impact

 *Impact x Likelihood = Risk Score


Determine the risk likelihood. 

LIKELIHOOD

Score

Definition

5

Almost certain; expected to occur

4

Likely; probably will occur

3

Possible; might occur at some time

2

Unlikely; could occur at some time

1

Rare; may occur

 

Multiply the two numbers, the resulting product is the risk score. Use the table below to determine your immediate response strategy.

Risk Score*

Consequences

Immediate Actions

Very High Risk
(21-25)

Extreme financial loss; extreme reputational impact

Requires essential and immediate allocation and organization of resources to manage/mitigate the risk; establish plans and countermeasures.

High Risk
(16-20)

High financial loss; high reputational impact

Requires priority allocation of resources for management and/or mitigation; establish plans and countermeasures.

Moderate Risk
(11-15)

Moderate financial loss; medium to low reputational impact

Allocation of resources for study is desirable; risk should be monitored for increases in impact or likelihood.

Low Risk
(6-10)

Low financial loss; low to no reputational impact

Generally does not require action, but should be reviewed periodically.

Very Low Risk
(1-5)

Negligible financial loss; no reputational impact

No action required.

*Impact x Likelihood = Risk Score

The risk score results can be plotted on a HEAT MAP. While this is useful data and will give us a starting point to narrow down the risks, it is not the only input we will use to do our RISK RANKING.

Last Updated: April 8, 2016

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