Risk Ratings

Alex Apostolou

Some people ask us why does Meercat RiskView handle all of those Risk Ratings?

Yes, there are a lot, but hopefully this will explain why and what they can be used for.

Current and Proposed

Firstly a word about Current and Proposed, for those enjoying the benefits of this multi-scenario analysis.

The Current Risk Assessment is that which pertains to everything that is in place now and for the foreseeable future. There are still assessments for Inherent, Initial and Residual risk, but only insofar as the existing plans and operational processes. This is the standard and normal view of risk.

But what if you wanted to model the risk assessment based on a potential future scenario, say, when implementing a new scrubber process which will dramatically reduce emissions thereby provide a safer, more efficient and lower risk of impact on for your workforce, environment and company reputation. This is what the Proposed category is for. When a control is categorised as Proposed, only the Proposed risk rating reduces, while the Current risk rating is unaffected.

By using this Current and Proposed (or Initial or Future or whatever terminology you might have applied) method, you will be able to use the Cost Benefit Analysis tool to assess whether the expenditure on the new control can be warranted based on the capital cost, operational cost, interest rate and NPV versus the risk reduction achieved at the consequences.

Risk Ratings

The system calculates quite a few so here’s what they are.

  1. Initial Risk Rating: Manually set. Intended as a quick assessment of the risk when in Simple mode.
  2. Inherent Risk Rating: Calculated. The product of the sum of all active Cause Current Likelihoods and the maximum Current Consequence Severity. Effectively shows the risk rating without any controls in place, even if there are. This can also be simulated by disabling all Controls or all non-Critical Controls within the Bowtie View Options function.
  3. Current Unmitigated Risk Rating (or Current Top Event Risk Rating): Calculated. The product of the Current Top Event Likelihood and the maximum Current Consequence Severity. Effectively shows the risk rating without any mitigative controls in place, even if there are.
  4. Current Risk Rating: Calculated. The product of the Current Top Event Likelihood and the maximum Current Consequence Severity. Effectively shows the risk rating without any mitigative controls in place, even if there are.
  5. Proposed Top Event Risk Rating (or Proposed Unmitigated Risk Rating): Calculated. The product of the Current Top Event Likelihood and the maximum Current Consequence Severity. Effectively shows the risk rating without any mitigative controls in place, even if there are.
  6. Proposed Risk Rating: Calculated. The product of the Current Top Event Likelihood and the maximum Current Consequence Severity. Effectively shows the risk rating without any mitigative controls in place, even if there are.

Risk Ratings are all calculated quantitatively. When you are operating in Semi-Quantitative mode, those numbers are visible. When you are operating in Qualitative mode, then the numbers are mapped, based on a configurable system policy to either the Floor, Ceiling or Value of the numbers connected to the Risk Matrix.

In addition to the above numbers and risk matrix selections, RiskView calculates the following values, most of which are available in the view at Browse > Advanced Analysis > Bowtie (Quant)

  • Total Cause Frequency
  • Maximum Consequence Severity
  • Total Consequence Risk
  • Max Consequence Category
  • Layers of Protection Target Met
  • Top Event Frequency

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