Page 51 - KFTL Report

KFTL DUE DILIGENCE – Kingston, Jamaica
13.1.4 Risk Workshop Outcome – 5X5 Risk Matrix:
Below is the output from the risk workshop held with the various members of the engineering team.
Comments from the team at the time, was realisation that data and information is in fact critical in order to make informed risk-based decisions, and that the need for a cross functional team (Ops, Commercial, Finance etc) were important to have in attendance in order to ensure accuracy in define monetary risks and impact to KFTL.
The monetary figures in the 5X5 matrix, are assumed by Trent at this stage, and can be aligned to meet KFTL requirements as required. The ‘risk bubbles’ can then be re-positioned accordingly.
KFTL - RISK PROFILE
Structural Inspections
Spreader Cable Reel
Sheaves
Trim List Skew
QC Snag Protection
Electrical Bypassing Activities
Spare Parts Availability
Trolley Rail & Wheels
Storm Pin Linakges
Substations
QC Slip Ring Box
Dirverter Unit Rollers
US$ Revenue
Image & Reputation
LOW
< USD500K
<1%
First Aid only required
Isolated, internal or minimal adverse attention or complaint
Isolated non-compliance or breach; minimal failure of internal controls managed by normal operations
Isolated non-compliance or breach; negligable financial impact
MEDIUM
< USD1.0M
Minor medical treatment with or without lost time
Heightened local community concern or criticism
Contained non-compliance or breach with short term significance; some impact on normal operations
Contained non-compliance or breach with short term significance and minor financial impact
RISK #2
< USD3M
Significant injury involving medical treatment and lost time
Significant public criticism with or without media attention
Serious breach involving statutory authority or investigation; prosecution possible with significant financial impact
RISK RISK RISK #7 #4 #1
RISK RISK #9 #6
HIGH
RISK RISK RISK #8 #5 #3
< USD7M
Individual fatality or serious long term injury
Serious public or media outcry; broad media attention
Major breach with fines and litigation; long term significance and major financial impact
EXTREME
>USD7M
Impact on KFTL
< 15 %
Project Management
Delay < 1% of timeline
or cost overrun by < 1% contract value
<3%
Delay < 3% of timeline
or cost overrun by < 3% contract value
< 10 %
Delay < 5% of timeline
or cost overrun by < 5% contract value
Delay < 10% of timeline
or cost overrun by < 10% contract value
> 15 %
Delay > 10% of timeline
or cost overrun by > 10% contract value
Health & Safety
Multiple fatatlities or extensive long term injury
Extensive public outcry; potential national media attention
Environmental & Natural Hazards
Regulatory & Governance
Minimal physical or environmental impact; isolated hazards; dealth with through normal ops
Minor physical or environmental impact; hazards immediately controlled with local resources
Significant physical or enviornmental impact; hazards contained with assistance of external resources
Major physical or environmental impact; hazard extending off-site; external services required to manage
Extensive physical or environmental impact extending off-site; managed by external services; long term remediation required
Serious breach involving statutory authority or investigation; significant failure of internal controls; adverse publicity at local level
Major breach with formal inquiry; critical failure of internal controls; widespread adverse publicity
Extensive breach involving multiple individuals; potential litigation; viability of organisation threatened
Contractual & Legal
Extensive fines and litigation with possible class action; threat to visibility of program or service
Human Resources
Routine HR issues / Employee satisfaction >80% / Attrition rate < 5%
Some short term staff morale problems / Employee satisfaction < 80% / Attrition rate < 7%
Widespread staff morale problems; key employees leave / Employee satisfaction < 72 % / Attrition rate < 10%
Some key employees leave; high staff turnover; poor reputation as an employer / Employee satisfaction < 65% / Attrition rate < 12%
A large number of key employees or directors leave / Employee satisfaction < 50% / Attrition rate > 12%
Consequences
Risk matrix is Trent Enterprise Risk Management Policy & Framework example
TRENT ASSOCIATES
51
Likelihood
1 - Rare 2 - Unlikely 3 - Possible 4 - Likely 5 - Almost certain 0% - 5% 6% - 25% 26% - 50% 51% - 75% > 75%