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Consequence and Likelihood

GuardianERM.Net uses a five-point scale in defining the consequence and likelihood. The numbers 1 to 5 can be labelled anything and can be modified in the system parameters. The risk level, calculated as Consequence X Likelihood, can also be defined via the system parameters.

It is important that the ratings are clearly defined and communicated to all users of the system before any attempt to evaluate any risks such that the rating will be consistent across the board and meaningful when compared.

Below is a sample definition.

Rating guides for consequence and likelihood can be prepared in the Administration module which may help in more consistent rating of risks.