Buisness Plan: Financial Planner When preparing the critical risks list, its important to mention those risk that have the most potential to impact your business plan project positively or negatively. Identifying critical risks is a process of prioritization and this an output of qualitative or quantitative risk analysis. Risk prioritization facilitates the process of risk mitigation and response planning. There are several tools which can help with risk prioritization, particularly the risk register and the risk matrix, following we show how to build each one. Risk Matrix S E V E R I T Y Probability of occurrence Risk Assessment Matrix Very unlikely to happen Unlikely to happen Possibly could happen Likely to happen Very likely to happen 5. Catastrophic (e.g fatal) Moderate Moderate High Critical Critical 4. Major (e.g permanent disability) Low Moderate Moderate High Critical 3. Moderate (e.g Hospitalisation/short- or long-term disability) Low Moderate Moderate Moderate High 2. Minor (e.g First Aid) Very Low Low Moderate Moderate Moderate Superficial (e.g no treatment required) Very Low Very Low Low Low Moderate Risk Register Critical risk Severity (From 1 to 5 being 1 the less critical and 5 the most) Probability of occurrence (from 1 to 5, being 1 the less probable and 5 the most) A B C D E Probability of occurrence Risk Very Possibly Unlikely to Likely to Very likely Assessment unlikely to could happen happen to happen Matrix happen happen 5. Catastrophi Moderate Moderate High Critical Critical S c (e.g fatal) E V 4. Major (e.g E permanent Low Moderate Moderate High Critical R disability) I 3. Moderate T (e.g Y Hospitalisat Low Moderate Moderate Moderate High ion/short- or long-term disability) 2. Minor (e.g Very Low Low Moderate Moderate Moderate First Aid) Superficial (e.g no Very Low Very Low Low Low Moderate treatment required).

1. Buisness Plan: Financial Planner
When preparing the critical risks list, its important to mention those risk that have the most
potential to impact your business plan project positively or negatively. Identifying critical risks is a
process of prioritization and this an output of qualitative or quantitative risk analysis. Risk
prioritization facilitates the process of risk mitigation and response planning. There are several
tools which can help with risk prioritization, particularly the risk register and the risk matrix,
following we show how to build each one.
Risk Matrix
S
E
V
E
R
I
T
Y
Probability of occurrence
Risk Assessment Matrix
Very unlikely to happen
Unlikely to happen
Possibly could happen
Likely to happen
Very likely to happen
5. Catastrophic (e.g fatal)
Moderate
Moderate
High
Critical
Critical
4. Major (e.g permanent disability)
Low
Moderate
Moderate
High
Critical
3. Moderate (e.g Hospitalisation/short- or long-term disability)
Low
Moderate
Moderate
Moderate
High
2. Minor (e.g First Aid)

2. Very Low
Low
Moderate
Moderate
Moderate
Superficial (e.g no treatment required)
Very Low
Very Low
Low
Low
Moderate
Risk Register
Critical risk
Severity (From 1 to 5 being 1 the less critical and 5 the most)
Probability of occurrence (from 1 to 5, being 1 the less probable and 5 the most)
A
B
C
D
E
S
E
V
E
R
I
T
Y
Probability of occurrence
Risk
Assessment
Matrix
Very
unlikely to
happen
Unlikely to
happen
Possibly
could
happen
Likely to
happen
Very likely
to happen
5.
Catastrophi
c (e.g fatal)
Moderate Moderate High Critical Critical
4. Major (e.g
permanent
disability)
Low Moderate Moderate High Critical
3. Moderate
(e.g
Hospitalisat
ion/short- or
long-term
disability)
Low Moderate Moderate Moderate High
2. Minor (e.g
First Aid)
Very Low Low Moderate Moderate Moderate

3. Superficial
(e.g no
treatment
required)
Very Low Very Low Low Low Moderate