Consequence Measure

A Consequence Measure is a score that is used to determine the magnitude or level of risks.

• AKA: Consequence Score.
  • …
• Example(s):
  • likelihood score and consequence scores table example:

Level of Risk and example control actions required:

E: extreme risk; decision cannot be actioned without appropriate controls designed to lower;

H: high risk; decision must be bought to the attention of management for discussion before agreement;

M: moderate risk; decision acceptable with appropriate monitoring;

L: low risk; decision acceptable mechanism.

Likelihood	Consequences
	Negligible	Low	Medium	High	Very High
A (almost certain)	M	M	H	H	E
B (likely)	L	M	H	H	H
C (possible)	L	M	M	H	H
D (unlikely)	L	L	M	H	H
E (rare)	L	L	L	M	M

• Counter-Example(s):
  • Likelihood Measure,
  • Risk Management Task.
• See: Consequence Analysis, Risk Management System, Logical Consequence, Probability Analysis.

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References

2020

• (Sielearning, 2020) ⇒ https://sielearning.tafensw.edu.au/MBA/9791K/BusinessServices/lo/1207_020138_608K_03_wi/1207_020138_608K_0307_wi.htm Retrived: 2020-10-10.
  • QUOTE: Risk analyses are generally directed at the negative consequence of risks. The consequence measure therefore reflects the losses or undesired outcome that might arise. However, risk management is increasingly being applied to identify and prioritise opportunities as the risk associated with not exploiting an opportunity or embarking on a particular business strategy could be considerable. In many cases, the 'upside risks' are potentially more serious than the risk that bad events will occur (ie, the 'downside risk'). When considering opportunities, the likelihood measure need not change, as it will describe the chance that a benefit will arise. The consequence measure must, however, be adjusted.

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