Ranking the Risks

Having assessed the severity of risk and their likelihood, the next task is to begin putting them in some order. This section describes a way to rank and compare the various risks you have identified.

Using the following matrix, go through each of the risks you have identified and determine its category (A, B, C or D). Then enter these categories onto your Risk List.

Categories of Risk

After filling out the Risk List, you might find it easier to redo the list, grouping together each category of risk. You might also find it easier to visualise the list if you use a highlighting pen to indicate the different categories of risk - say, red for category A, yellow for category B and blue for category C.

Risk List with Examples of Likelihood, Severity and Categories

The chart below illustrates this process. It is not intended to be an exhaustive list; rather it gives a few examples of some common risks faced by organisations, the category they might fall into and their possible severity.