Appendices
Appendix 5.6: Risk evaluation tables
The following tables below serve as another decision-making tool in the selection and evaluation of EMO projects. They are generally applicable to a host of situations. Remember, risk R = E X L X C, where C is the sum of individual consequences (business, safety, etc.).
Risk map
| Severity: Losses to people, business, assets, production, environment | |||
| Probability | Minor | Moderate | Major |
| Frequent | B | A | A – High (Act within three months) |
| Seldom / occasionally | C | B – Medium (Act within six months) | A |
| Rare | Low C (Act within one year) | C | B |
Risk values and weights
| Risk component | Value scale | Weights |
| Exposure | 0–10 | 1 |
| Likelihood | 0.1–10 | 1 |
| Consequences | 0.25–25 | Total 10: 2.5 for each consequence |
Likelihood
| What is the probability that the event will take place? | ||
| 10 | High | Continuous (may occur on a daily basis) |
| 6 | Medium high | Frequent (may occur on a weekly basis) |
| 3 | Medium | Occasional (may occur on a monthly basis) |
| 1 | Medium low | Rare (may occur on a yearly basis) |
| 0.5 | Low | Very rare (may occur only every few years) |
| 0.1 | None | Negligible |
Exposure
| How frequently does the activity or event take place? | ||
| 10 | High | Continuous (Occurs throughout the day or daily) |
| 6 | Medium high | Frequent (Occurs weekly) |
| 3 | Medium | Occasional (Occurs monthly) |
| 1 | Medium low | Rare (Occurs yearly) |
| 0.5 | Low | Very rare (Occurs only every few years) |
| 0 | None | No exposure |
Consequences
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Public opinion / Company reputation What are the impacts on public opinion and company reputation resulting from the activity or event and its aftermath? |
Business What are the business consequences and/or financial losses resulting from the activity or event and its aftermath? |
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| Degree | Description | Score | Degree | Description | Score | |
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| High |
Negative national or international news coverage, or protest by national or international protest groups or non-governmental organizations (NGOs) due to high importance issues Requires lengthy negotiations; issues may not be resolvable |
25 | High |
High Loss or damage of over $1,000,000 Significant long-term impact on: Permanent loss of new economic opportunities |
25 | |
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Medium High |
Negative local or regional news coverage or protests by local or regional stakeholders or non-governmental organizations (NGOs) Issues resolvable but require many meetings over several weeks or months |
10 |
Medium High |
Loss or damage of over $100,000 Significant short-term impact on: Short-term loss or restrictions on development of present and new economic opportunities |
10 | |
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| Medium |
Complaints to outside agencies, regulators and the company Issues resolvable in short-term at meetings |
4 | Medium |
Loss or damage of over $10,000 Slight impact on: Short-term restrictions on present economic opportunities |
4 | |
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Medium low |
Complaints to the low company Issues easily resolved |
2 |
Medium low |
Loss or damage of over low $1,000 No effect on: No restrictions on present and future new economic opportunities |
2 | |
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| Low | Second-hand knowledge of public concern | 1 | Low | Loss or damage of over $100 | 1 | |
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| None | No complaints known | 0.25 | None | None | 0.25 | |
Consequences – safety
| What are the human health and safety consequences of the activity or event and its aftermath? | ||
| Degree | Description | Score |
| High | Death(s) or long-term health impacts | 25 |
| Medium high | Serious injury or short-term health impacts | 10 |
| Medium | Temporary irritation or disability | 4 |
| Medium low | Series of minor injuries or complaints | 2 |
| Low | Minor first aid or irritation | 1 |
| None | None, negligible or inconsequential | 0.25 |
Other categories of consequences may be chosen and similarly rated, e.g., environmental, legal, etc. Hazard must be present for risk calculation and when it is expressed as frequency. It is called “Exposure” here.