ABSTRACT
The Risk Impact Grid is a useful means of assessing the magnitude of a risk by looking at the combined effect of its potential impact and the likelihood of it occurring. Once risk assessment has been undertaken, the risks can be nominated to a ‘traffic light’ red, amber or green coding so that they are easier to monitor and manage. The key elements of the model are as follows: Probability of occurrence; Severity of impact; Red; Amber; and Green. In risk management terms, the model helps to provide an initial risk assessment. All the model does is position the risks relative to each other in a graphical format. The model does not identify risks, nor does it conduct the specific assessment of the risk or inform the user how the risk should be managed as a consequence.
