Risk Matrix

Risk Matrix

5*5 Matrix

Likelihood
Rare Unlikely Possible Likely Certain
Severity Insignificant L L M M M
Minor L M M H H
Moderate M M H H S
Major M H H S S
Severe M H S S S

L  = Low Risk
M = Minor Risk
H = High Risk
S = Severe Risk


PAER System

Definition of Severity in 4 different categories

People Asset Environment Reputation
Insignificant no LTI 1 -10K Minor impact Minor impact
Minor LTI 10k – 100K Local impact Impact
Moderate Lost workday 100k – 1M Regional impact High impact
Major Disability 1M -10 M National impact Major impact
Severe Fatality >10M International impact Severe impact

PAER system combined with 5*5 Matrix

PAER system combined with 5*5 Matrix

P A E R never heard has happened once per year more than once per year more than once per year in the company
People Asset Environment Reputation Rare Unlikely Possible Likely Certain
Insignificant no LTI 1 -10K Minor impact Minor impact L L M M M
Minor LTI 10k – 100K Local impact Impact L M M H H
Moderate Lost workday 100k – 1M Regional impact High impact M M H H S
Major Disability 1M -10 M National impact Major impact M H H S S
Severe Fatality >10M International impact Severe impact M H S S S