Risk Rating Guide

Bounce Fitness understands the importance of assessing the likelihood and impact of business risks
that may affect its operations. In order to assist in this assessment, Bounce Fitness has created a
generalised Risk Rating Guide to help staff members prioritise which risks must be handled first. This
will allow management to identify and quickly address high likelihood and high impact risks.

The Risk Rating Guide must be used when planning contingencies for business operational matters.
This guide does not encompass work health and safety concerns.

Likelihood Scale

Level Likelihood Description

1 Rare The event may occur in exceptional circumstances. Less than once in 2 years.

2 Unlikely The event could occur at some time. At least once per year.

3 Moderate The event will probably occur at some time. At least once in 6 months.

4 Likely The event will occur in most circumstances. At least once per month

5 Certain The event is expected to occur in all circumstances. At least once per week.

Bounce Fitness
Risk Rating Guide
 Impact Scale

Level Impact Description

1 Minimal The event will have little or no impact on achieving objectives.

The event will cause one or more objectives to fall below goals but well above
2 Minor
minimum acceptable levels.

The event will cause one or more objectives to fall well below goals but above
3 Moderate
minimum acceptable levels.

4 Significant The event will cause one or more objectives to fall below acceptable levels.

5 Severe The event will cause one or more critical objectives to not be achieved.

Risk Rating Matrix

Likelihood

Rare Unlikely Moderate Likely Certain

Impact Level 1 2 3 4 5

Minimal 1 1 2 3 4 5

Minor 2 2 4 6 8 10

Moderate 3 3 6 9 12 15

Significant 4 4 8 12 16 20

Severe 5 5 10 15 20 25

Bounce Fitness
Risk Rating Guide
 Risk Priority Scale

Risk Rating Risk Priority Description

Low: May require consideration in any future changes to the work area or
1–3 L
processes, or can be fixed immediately.

Moderate: May require corrective action through planning and budgeting

8 – 12 H High: Requires immediate corrective action.

Extreme: Requires immediate prohibition of the work process and

Bounce Fitness
Risk Rating Guide