Page 137 - Microsoft Word - 00 P1 IW Prelims.docx
P. 137
Risk and the risk management process
4.2 Risk mapping
A common qualitative way of assessing the significance of risk is to produce a ‘risk
map’:
Risks can be plotted on a diagram, as shown.
Impact/consequence
Low High
Further analysis
High required? Highest priority
Probability
/likelihood
Risks can probably Further analysis
Low be accepted required?
The risk management strategies that will be adopted depend on how risk is assessed
on this map.
Transfer
Accept
Reduce
Avoid
Illustrations and further practice
Now review illustration and try TYU question 5
131
