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Project/Contract Title:
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Last Modified: 8/14/2018 22:09

Procurement Risk Register

Register
Category of Likelihood Impact Financial Insurable
Brief Description of Risk Description of the impact Risk Level Insurance Type Other Mitigation
Risk rating rating Impact range (Yes / No)
 Impact Rating
Impact Financial Assets / Property Legal / Governance Reputation / Media Health & Safety Environmental Contract Delivery Technology
Catastrophic $300m to $1b+ Significant widespread loss, Royal Commission Negative long term national Numerous fatalities and Catastrophic event with Total failure of contract Total failure of key
eg major bushfire losses investigation resulting in and international coverage total permanent disabilities significant irreversible loss technology
compensation, fines, - severe damage
restructures and individuals
jailed

Disastrous $100m to $300m Total loss of multiple major Parliamentary and Negative coverage for 4 Ten or more fatalities and Significant event with loss Total failure of contract Total loss of a major centre
buildings or considerable regulatory investigation weeks in State media, 2 total permanent disabilities of habitat and loss of a or hub, which cannot be
damage to a major resulting in compensation, weeks in national media unique species readily replicated
transport asset fines and individuals jailed and 1 week internationally
Major $30m to $100m Total loss of a major public Regulatory actions with Negative coverage for 2 Multiple fatalities and total Significant event with loss Total failure of contract - Damage or loss impacting
building or complex fines and individuals jailed weeks in State media, 1 permanent disabilities and loss of some recovery difficult to achieve multiple systems over 2 or
week in national media and endangered species but possible more weeks with
2 days internationally associated loss of service
Significant $10m to $30m Total loss of a small school Regulatory actions with Negative coverage for 2 Multiple fatalities and Significant event with loss Total failure of contract - Damage or loss of systems
or equivalent fines and individuals weeks in State media and 1 serious injuries and some irreversible recovery able to be with unreliable service for 2
charged week in national media damage achieved weeks until restored

Moderate $3m to $10m Serious damage to a major In-depth investigation, fines Negative coverage for 1 Single fatality and multiple Major event with loss and Significant breach of Damage or loss of systems
complex, minor bridge and corrective actions week in State media and total disabilities some irreversible damage contract delivery requiring with poor service for 2
collapse ordered also in national media for 1 intervention and possible weeks until restored
day termination
Minor $1m to $3m Serious damage to a public Regulatory investigation Negative coverage for 3 Single fatality or multiple Major release, damage Breach of contract delivery Loss of a significant asset
building of note with fines and or days in State media permanent disabilities reversible requiring intervention with continuity implications
disciplinary actions
Minimal $300k to $1m Total loss of a small Regulatory investigation Negative coverage for 1 Hospitalisation and Moderate contamination, Loss of goods or services System interruption across
property with fines day in State media permanent disability contained and cleaned up, with delay to delivery a wider area for 1 day
regulatory interest
Negligible $100k to $300k Small property seriously Regulatory investigation Minimal negative coverage Hospitalisation with no long Minor contamination, Minor interruption, rectified Minor issue, resolved with
damaged with warning - all inquiries managed term effects contained and cleaned up with effort extra effort
Insignificant $0 to $100k Minor loss / damage to Minor breach, self corrected No coverage - all inquiries First aid treatment Minor release, contained Minor interruption, readily Slight interruption, readily
single building managed and cleaned up rectified resolved
 Likelihood Rating
Descriptor Broad Description Occurrence within 3 year Contract Annualised frequency
Almost Certain The event is expected to occur in most circumstances The event is anticipated to occur twenty or more times Once a month or more frequent occurrence
during the contract
Very Likely The event is likely to occur in most circumstances The event is expected to occur at around six or more Twice a year or more frequent occurrence
times during the contract
Likely The event will probably occur in most circumstances The event is expected to occur on two of more Occur at least annually
occasions during the contract
Possible The event should occur at some time The event is expected to occur at least one during the One in three year return frequency
contract
Unlikely The event could occur at some time The event could occur at sometime On in ten year return frequency

Very Unlikely The event may only occur in exceptional circumstances The event has a remote chance of occurring during the One in thirty year return frequency
contact
Rare The event may only occur in extremely exceptional The event is not likely to occur during the contract One in one hundred year return frequency
circumstances

Risk Level
Impact
Insignificant Negligible Minimal Minor Moderate Significant Major Disastrous Catastrophic
Almost Certain Medium Medium High High Very High Very High Extreme Extreme Extreme
Very Likely Low Medium Medium High High Very High Very High Extreme Extreme
Likelihood Likely Low Low Medium Medium High High Very High Very High Extreme
Possible Very Low Low Low Medium Medium High High Very High Very High
Unlikely Very Low Very Low Low Low Medium Medium High High Very High
Very Unlikely Very Low Very Low Very Low Low Low Medium Medium High High
Rare Very Low Very Low Very Low Very Low Low Low Medium Medium High
Risk Analysis - Instructions
Objective
Identification, assessment and treatment of risks are integral to the project, governance and sourcing stages of the procurement
process. By identifying potential risks during the planning stage, decision-makers can formulate a plan to mitigate them. The effort
expended in managing risks in a procurement process should be consistent with the estimated procurement cost and complexity,
significance and nature of the process.

When identifying the risks and potential treatments to mittigate them, those with relevant expertise should be consulted. It is the nature
of risk and risk management that, sometimes, unexpected problems occur. When this happens it is important that the reasons and
circumstances are identified and documented, and taken into account with future risk analyses including updating guidance
documents accordingly.

All risk management decisions including risk identification, assessment and management should be recorded. This provides an
accountability trail.

Directions

1. Complete the table with the appropriate risks. Classify each risk in terms of impact and likelihood. Certain cells
have dropdown menus to select from - they are shown below with guidance for each selection.

Impact Likelihood
Impact Increases as Likelihood increases
move up list as move up list

2. The Financial Impact Range and Risk Level will be automatically calculated by the Worksheet.

3. Determine whether Insurances are required and/or other risk mittagations.

Risk mittigation are those activities that are undertaken to impact on the likelihood and/or impact and thereby
modify the inherent risk. This may include risk sharing; wholly or partially transferring risk to another party or
avoiding the risk by not undertaking the particular activity. The result is to bring the risk level to a level
acceptable. For those risks that can be treated or mitigated through insurance, refer to the Insurance Guidelines