The Level of Risk is the product of the risk likelihood and its potential severity.
It will be computed as follows:
Probability x Severity | Risk Level | |
---|---|---|
1, 2, or 3 | Minimum | |
4 or 6 | Low | |
5, 8, or 9 | Moderate | |
10, 12, or 16 | High | |
15, 20, or 25 | Extreme |
Example: If a Risk’s Probability is “Possible” and its Severity is “Minor”, the Risk Level will be computed as follows: 3 (Probability) x 2 (Severity) = 6. The Risk Level will, therefore, be considered as “Low” () and appear as such in the matrix.