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QMS - Risk & Oppor

RO Rating Risk (Negative Consequence)

Conformance Fulfilment of Return on


Performance
to compliance obligations Objectives investment

Minimal (no customer complaint) or Potential <5%


Very Low 1 No negative trend <5% below target
no impact ROI

Indicators with negative


Moderate impact (noticeable effect, 5-10% below Potential 5-
Low 2 trend < those with
minor customer complaint) target 10% ROI
positive trend

Moderate impact (customer Indicators with negative


11-20% below Potential 11-
Medium 3 complaint resulting in claim), trend = those with
target 20% ROI
alternative available positive trend

Major impact (catastrophic, recall,


Indicators with negative
fatality, legal action, costly 21-30% below Potential 21-
High 4 trend > those with
compensation), alternatives target 30% ROI
positive trend
available

Major impact (catastrophic, recall,


Consistently all
fatality, legal action, costly Potential
Very High 5 indicators negative > 30% below target
compensation), no alternatives >30% ROI
trend
available
QMS - Risk & Opportunity Register - Criteria

Opportunity (Positve Consequence)

Capacity/Sales/ Reduction in
Shareholder Value Best Practices
Turnaround time waste/ cost

No perceive change No perceived value for


<5%
to company value improvement

Pursuing the opportunity will


Slight increase in
slightly improve good 5-10%
company value
governance

Considerable Pursuing the opportunity will


increase in company considerably improve good 11-20%
value governance

Pursuing the opportunity will


High Increase in
highly improve good 21-30%
company value
governance

Pursuing the opportunity will


Very high Increase greatly improve good
>30%
in company value governance essential for
sustainability
QMS - Risk & Opportunity Register
Doc #: Rev #: Last Review Date: Updated by: Review & Approval:
1. Identify and analyse risk/opportunity affecting the intended output of the management system
2. Actions on risks include avoding risks, taking risk to pursue an opportunity, eliminating risk source, changing likelihood or consequence, sharing risk, retaining risk by informed decision.
3. Actions on opportunities may include adoption of new practices, launching new products, opening new markets, addressing new clients, building partnerships, using new technology, etc.
Leader :
Team Members : Initial RO Status Residual RO

required? Yes or No
Acceptable? Y/N
Significant? Y/N

If unacceptable,
Related

(retain risk)
next action
Internal/ Description Actual

Shelved
Verifed
Rating

Rating
Risk Source or Current Control/ Related Date

Open
Planned
External of Risk/ R/O Consequence Action Process Resp
Date
Completion Results
No Cause Existing Situation document Closed
Issues or Opportunity Date
Requirements

Page 3+2 of 10+2


QMS - Risk & Opportunity Register
Doc #: Rev #: Last Review Date: Updated by: Review & Approval:
1. Identify and analyse risk/opportunity affecting the intended output of the management system
2. Actions on risks include avoding risks, taking risk to pursue an opportunity, eliminating risk source, changing likelihood or consequence, sharing risk, retaining risk by informed decision.
3. Actions on opportunities may include adoption of new practices, launching new products, opening new markets, addressing new clients, building partnerships, using new technology, etc.
Leader :
Team Members : Status

Significant? Y/N
Related
Internal/ Actual

Shelved
Verifed
Rating
Risk Description Date

Open
Planned
External R/O Consequence Action Process Related document Resp Date
Completion Results
No of Risk/Opportunity Closed
Issues or Date
Requirements

Page 4+2 of 10+2


QMS - Risk & Opportunity Register
Doc # : Rev #: Last Review Date: Updated by: Review & Approval:
1. Identify and analyse risk/opportunity affecting the intended output of the management system
2. Actions on risks include avoding risks, taking risk to pursue an opportunity, eliminating risk source, changing likelihood or consequence, sharing risk, retaining risk by informed decision.
3. Actions on opportunities may include adoption of new practices, launching new products, opening new markets, addressing new clients, building partnerships, using new technology, etc.
Leader :
Team Members : Initital Risk Status Residual Risk

required? Yes or No
Consequence

Consequence

Acceptable? Y/N

If unacceptable,
Significant? Y/N
Likelihood

Likelihood
Related

Date Closed
(retain risk)
next action
Risk

Risk
Internal/ Description Actual

Shelved
Verifed
Risk Current Control/ Risk Related Risk

Open
Planned
External of Risk/ R/O Source or Cause Consequence Action Process Resp
Date
Completion Results
No Existing Situation Grade document Grade
Issues or Opportunity Date
Requirements
C L CL C L CL

Page 5+2 of 10+2


QMS - Risk & Opportunity Register
Doc #: Rev #: Last Review Date: Updated by: Review & Approval:
1. Identify and analyse risk/opportunity affecting the intended output of the management system
2. Actions on risks include avoding risks, taking risk to pursue an opportunity, eliminating risk source, changing likelihood or consequence, sharing risk, retaining risk by informed decision.
3. Actions on opportunities may include adoption of new practices, launching new products, opening new markets, addressing new clients, building partnerships, using new technology, etc.
Leader :
Team Members : Status

Significant? Y/N
Consequence

Likelihood
Related

Risk
Internal/ Actual

Shelved
Verifed
Risk Description Risk Date

Open
Planned
External R/O Consequence Action Process Related document Resp Date
Completion Results
No of Risk/Opportunity Grading Closed
Issues or Date
Requirements
C L CL

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QMS - Risk & Opportunity Regi
A. Consequence
Risk (Negative Consequence)

Conformance Fulfilment of Return on


Performance
to compliance obligations Objectives investment

Minimal (no customer complaint) or Potential <5%


Very Low 1 No negative trend <5% below target
no impact ROI

Indicators with negative


Moderate impact (noticeable effect, 5-10% below Potential 5-
Low 2 trend < those with
minor customer complaint) target 10% ROI
positive trend

Moderate impact (customer Indicators with negative


11-20% below Potential 11-
Medium 3 complaint resulting in claim), trend = those with
target 20% ROI
alternative available positive trend

Major impact (catastrophic, recall,


Indicators with negative
fatality, legal action, costly 21-30% below Potential 21-
High 4 trend > those with
compensation), alternatives target 30% ROI
positive trend
available

Major impact (catastrophic, recall,


Consistently all
fatality, legal action, costly Potential
Very High 5 indicators negative > 30% below target
compensation), no alternatives >30% ROI
trend
available

B. Likelihood (L) Rating


Risk
Rare 1 Not known to happen, proven or completely mitigated by existing procedure
Low 2 Very low likelihood of happening, less than 1/year, demonstated or well mitigated by existing procedure
Medium 3 Known to happen, may happen up to 1x/quarter, partially demonstrated or mitigated by existing procedure
High 4 Highly likely to happen, may happen more than 1x/quarter, analytically demonstrated possible mitigate procedure
Very High 5 Very likely to happen, may happen more than 1x/month, speculative with no mitigation procedure

C. Risk/Opportunity Grading
Consequence
VL (1) L (2) M (3) H (4)
R (1) E(1) E (2) E (3) D (4)
L (2) E (2) D (4) D (6) C (8)
Likelihood M (3) E (3) D (6) C (9) B (12)
H (4) D (4) C (8) B (12) A (16)
VH (5) D (5) B (10) A (15) A (20)

D. Acceptance Criteria

Conse-
quence x
Grade Action
Likeli-
hood

A (15-20) Priority action, project to be pursued, budget to be approved

B (10-12) Action be second priroty in the absence of Grade A risk/opportunity

C (8-9) Action to be done if there is available resources, or when no higher Grade exist

D (4-6) To be noted, no action is needed


E (1-3) To be noted, no action is needed
& Opportunity Register - Criteria

Opportunity (Positve Consequence)

Capacity/Sales/ Reduction in
Shareholder Value Best Practices
Turnaround time waste/ cost

No perceive change No perceived value for


<5%
to company value improvement

Pursuing the opportunity will


Slight increase in
slightly improve good 5-10%
company value
governance

Considerable Pursuing the opportunity will


increase in company considerably improve good 11-20%
value governance

Pursuing the opportunity will


High Increase in
highly improve good 21-30%
company value
governance

Pursuing the opportunity will


Very high Increase greatly improve good
>30%
in company value governance essential for
sustainability

Opportunity
Minimal chance of success within next 12-24 months
sting procedure 0-25% chance of success within next 12-24 months
existing procedure 50-75% chance of success within next 12-24 months
ssible mitigate procedure 50-75% chance of success within next 12-24 months
>75% chance of success within next 12-24 months

VH (5)
D (5)
B (10)
A (15)
A (20)
A (25)

Significance

Significant Risk/
Opportunity

Non-Significant
Risk/Opportunity
Examples of Risks

Related Internal/ External


Issues or Requirements
Financial
Equipment, Asset
Internal Culture
Security

Compliance obligations

Reputation

Operational

Contractual

Service or product delivery

Market or Commercial

Project management

Safety
Stakeholder management
Client/customer relationship
Strategic direction

Technology
Market Risk
Credit risk
Procurement
Politics
Internal governance
Personnel
Examples of Risks

Description of Risk/Opportunity

Cash flow, budgetary requirements, tax obligations, creditor and debtor management, remuneration and other general account
Extends to equipment used to conduct the business and includes everyday use, maintenance, depreciation, theft, safety and u
Relates to the internal requirements of a business, extending to the cultural, structural and human resources of the business.
Includes the business premises, assets and people. Also extends to security of company information, intellectual property, and
Includes legislation, regulations, standards, codes of practice and contractual requirements. Also extends to compliance with ad
procedures or expectations, which may be set by contracts, customers or the social environment.
The threat to the reputation of the business due to the conduct of the entity as a whole, the viability of products/services, or the
associated with the business.
Covers the planning, daily operational activities, resources (including people) and support required within the a business that re
and delivery of products/services.
Meeting obligations required in a contract including delivery, product/service quality, guarantees/warranties, insurance and othe
performance.
Relates to the delivery of services, including the quality of service provided, or the manner in which a product is delivered. Inclu
sales service.
Includes risks associated with market placement, business growth, product development, diversification and commercial succe
products/services, extending through establishment, retention, growth of a customer base and return.
Includes the management of equipment, finances, resources, technology, timeframes and people involved in the management
operational projects, business development and external projects such as those undertaken for clients.
Including everyone associated with the business: individual, workplace and public safety. Also applies to the safety of products/
Includes identifying, establishing and maintaining the right relationships with both internal and external interested parties
Potential loss of clients due to internal and external factors.
Includes the planning, scoping, resourcing and growth of the business.
Includes the implementation, management, maintenance and upgrades associated with technology. Extends to recognising crit
particular service/function for an extended period of time. It further takes into account the need and cost benefit associated with
development strategy.
Change in currency exchange, international competition
Credit terms, limit, debt collection
Supplier relationship, ease of sourcing, assurance provided by supplier
Stability/instability of the political situation, government policy
Control by corporate, competence, independence of decisin making
Competence, language, teamwork, organizational structure, communication issues