Uploaded byMuhamad Sugian Nor
EXAMPLE
This document presents a risk matrix that evaluates different risks on two criteria: the likelihood of each risk occurring and its potential impact. The matrix assigns qualitative labels like "low", "medium", and "high" to indicate the level of risk for different scenarios based on the crossing of likelihood and impact. It also provides examples of specific risks that could be analyzed using this framework, such as political instability, exchange rate movements, changes in legislation, and issues relating to competitors, customers, and suppliers.
EXAMPLE
- 1. EXAMPLE: RISK MATRIX LowLow Low Medium Medium Medium Medium High HighHigh Medium High High Extreme Extreme HighLow Low` High High Extreme Extreme Extreme Medium Medium Rare Unlikely Possible Likely Almost Certain 1% ch. 25%ch 50% ch 67 - 75% ch. 99% ch. LIKELIHOOD Catastrophic (Rp xxx Bio) Major (Rp xxx Bio) Moderate (Rp xxx – xxx Bio) Minor (Rp xxx - xxx Bio) Insignificant (Rp < xxx Bio) IMPACT Risk Political Instability Adverse impact of exchange rate movements Changes in legislation Forex exposure Increased number of competitors Aggressive competitor activity Changing customer expectations Quality problems or other supplier related failures