Risk management consequence matrix

A risk assessment matrix is a useful tool to identify the level of risk and the levels of management approval required for any Risk Management Plan. There are various forms of this matrix, but they all have a common objective to define the potential consequences or severity of the hazard versus the probability or likelihood of the hazard. 

The impact of all mitigating actions and sources of assurance are considered before calculating the residual risk. Reduction of each of likelihood and consequence depends on underlying subject issue and specific control considered. When the actual control plan is not correctly implemented, then the concerned person of the risk team and manager risk team need to think of improvement for action plan implementation and/or modify the framework for control action as warranted for the project. After completion of risk register, all risk should be populated in a consolidated risk matrix (or heat map) with risk IDs. Based on this, a report summary is put before management for consideration major points here are ... 

Near miss incidents are warnings that the management system is flawed. Not all near miss incidents, however, need immediate and in-depth actions as some near miss incidents have less potential than others do. Assessing the potential of a near miss incident gives a clear indication so that investigations can be prioritized. Using a simple risk matrix, each near miss incident s potential can be ranked and consequent investigations and follow-up actions prioritized. 

One important aspect that needs to be taken into account when conducting a risk assessment is the fact that sometimes the priorities indicated by the risk assessment matrix are not necessarily the same as those outhned by the PTO Management Board consequently, the ultimate implementation of the risk assessment result is based on striking a balance between the overall needs and resources of the organization. 

The FAA s internal Safety Management System (ASD-lOO-SSE-1) combines the two approaches by classifying hazard severity as shown in Table 5.4 allocating consequence probability as shown in Table 5.5 and then assessing risk according to the matrix shown in Fig. 5.3. 

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