Total risk exposure code matrix

Review the Total Risk Exposure Code matrix and risk acceptance criteria in Chapter 11. Adopt the risk assessment and acceptance criteria and methodology (as presented or as modified by the planning group) or develop and adopt alternatives. 

If RACs are, in fact, going to serve as the drivers in the system and the basis for risk acceptance and resource allocation decisions, the numbers generated must have a positive correlation to the risk involved and to the resources required to control the hazard. A universal RAC matrix would provide a means of comparing relative risks associated with multiple projects, evaluating the allocation of funds, and determining the cost-effectiveness of various controls. Ideally, this universal risk assessment code matrix could provide an evaluation of risks in absolute as well as relative terms. Chapter 12 contains a proposed universal RAC matrix (Total Risk Exposure Codes). The use of a meaningful, quantified, expanded universal RAC matrix may represent a practical approach to probabilistic risk assessment. 

Figure 11-6 Total risk exposure code (TREC) matrix.

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