Risk Ranking Matrix - HOW TO RANK RISK ISO 9001

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ISO 9001:2015 Risk Assessment Matrix Tutorial. Learn how to rank risk in this step-by-step video tutorial with our CEO. Risk ranking is an important process of ISO 9001:2015.

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[lonirichmond]

I'm doing my cert in WHS at the moment and it's taken me a while to get my head around how to rank the severity of a risk. This explanation is perfect thank you!

[ChatGPT]

Likelihood of Detection is also another important part of the equation. If you are very likely to notice if the risk becomes either higher or an actual issue, the overall risk score would be lower than if you cannot detect such a change.

[saltanatkussainova]

Thank you very much! All is clear. Now I am struggling to improve Risk management. I think will need more practical examples. If possible. Thank you very much!

[zafarhussain]

Can somebody explain how we can make this chart and how many row we put low and how many row we put medium n highy by which calculation we make this risk metrics chart...

[ruang_rumus]

at the table, freq 5 and consq 2 is equal to Extreme Risk?? can you explained more

[bt]

love this .  very simple and easy to follow.  Thank you.

[christajansevanrensburg]

Very nice and helpful thank you.
How do you add "hyperbolic" lines to the table?

[mamunrashid]

Thanks a lot kobi, I am a big fan of you, excellently described, we also doing same way you express in the video. i am personally use probability and Severity method, I just want know is my method right? or I am doing right.

*Below my table

*RISK ANALYSIS METHOD
(Severity)
Catastrophic (5) R – Low R - Medium R - Medium R - High R - High Risk Rating
Critical (4) R – Low R - Medium R - Medium R - High R - High Low 1-8
Serious (3) R – Low R - Medium R - Medium R - Medium R - High Medium 9-15
Minor (2) R – Low R - Medium R - Medium R - Medium R - High High 16-25
Negligible (1) R - Low R - Low R - Medium R - Medium R - Medium
(1)Improvable (2)Increasing (3)Irregular ( 4)Probable (5) Frequently

(Probability)
*Example:

Potential Risk-Hiring Incompetent Peoples
Probability-04
Severity-03
Risk Rating=(Probability 04*Severity 03)(4*3)=12 Medium
Action Plan=Must be recruit skill operator through evaluated their technical and other knowledge.
Responsible Persons= Recruitment Team
Remarks= N/A

[dagwould]

You need to clearly define your risk likelihood and cost (effect/consequence) bands so they are rationally distributed.
Then it is more robust to calculate the effective cost of a risk and simply rank by defined risk appetite.
For example:
Low risk - can be handled with current resources and no material balance sheet effect.
Med risk - can be handled without increasing debt
Significant risk - will increase debt, but not impair our cost of debt
Major risk - will increase cost of debt---to will bankrupt the company.
BTW an even number of categories is desirable to avoid 'drift to the middle'.

[ashagajanayakage]

Hi Kobi, Thanks very much for the video. I would like to know how to rank positive risks (opportunities). I am struggling to rank them in the risk register. please advise. Thank you.

[hasithasuvimal]

HOW TO CREATE A RISK RANK MATRIX FOR DEBTOR MANAGEMENT

[AlexeyZubkov]

Not very specific. I would be satisfied with detailed practical example like boiling water in pot. How to choose rank? How to do tests likelihood of electric shock, timing, durability, quality of water? You can't just list generic answers like medium, low or high. On which criteria your ranking based?

[mohammedibrahimali]

my English language is not good but I understand very good.

[zafarhussain]

But how did u rank med med high high and low low low in chart without mentioning or calculating the such rating in this chart...!!??

[Charlotte-grmm]

an example for aged care would be good