How Risk Assessment Scoring Works

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Catalyst enables users to assign impact and likelihood ratings to loss of resources. The collection of these ratings serves as a Risk Assessment, which helps an organization measure and address the most significant resource loss scenarios.

Catalyst calculates risk by multiplying the Likelihood Rating Value (which can range from 1 to 10) of a resource loss by the Impact Rating Value (which can range from 1 to 10). Impact ratings are assigned within a department’s dependency on the resource. This calculation returns the Risk Rating Value (which can range from 1 to 100) of the resource loss. A resource may have several Risk Ratings, depending on how many departments depend on the resource and how the impact of loss varies across each group. Organizations should evaluate each resource’s ratings to understand the widespread impacts of loss.

Likelihood Rating

Likelihood rating is used in the Applications, Locations, and Suppliers modules and is set by the users tasked with managing these modules. A resource’s likelihood rating reflects the likelihood of an unspecified event making the resource unavailable within a specified timeframe. The Likelihood Rating can be set on the New/Edit screen of a resource for the above modules, using the scale below.

Likelihood Scale:

9-10: Certain

An impactful loss of this resource inevitably occurs multiple times annually

6-8: Probable

An impactful loss of this resource occurs at least biennially (every two years)

4-5: Likely

An impactful loss of this resource occurs periodically (every 2-5 years)

1-3: Possible

An impactful loss of this resource occurs rarely (every five to ten or more years)

Impact Rating

Impact Rating is set in the Department (BIA) section of Catalyst, usually by the BIA Owner or BIA Contributor, although it can be set by any user with BIA Update permissions. An impact rating reflects the degree to which a department would be affected by loss of the resource, no matter the cause. The Impact Rating is set on the New/Edit screens for any BIA resource dependencies, using the scale below.

Impact Scale:

9-10: Catastrophic

A loss of this resource affects safety, may endanger personnel, or involves noncompliance with government regulations. A loss would most likely result in a significant inability to meet customer needs, or other substantial operational, financial or reputation issues.

6-8: Major

A loss of this resource would likely lead to a high degree of customer dissatisfaction, though the loss does not involve safety or government regulation. It is likely a loss would result in serious disruption to customer-facing operations, or result in other major operational, financial or reputation issues.

4-5: Moderate

A loss of this resource would likely cause some customer dissatisfaction, performance issues, or deterioration in service, including potentially delays in product or service obligations.

1-3: Minor

A loss of this resource would only likely result in slight customer annoyance or service deterioration, potentially requiring process rework.

 

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