Table 2 Consequence Scale Consider the Worst Credible Outcome (Actual or Potential)

Consequence
Health & Safety (includes off-site) Environment Large scale irreversible environmental harm Reputation / Community Serious public or media outcry (international coverage). Operational Impact / Customer Service / Marketing Interruption to a material part of operations >6 months Extreme loss of production and service to customers. Key customers lost to alternative supply. Interruption to a material part of operations >1 month Major loss of production and service to customers. Some customers lost to alternative supply. Interruption to a material part of operations >1 week Moderate loss of production and service to customers. Some customers seek alternative supply for short term. Financial/ Asset Loss

Catastrophic

Fatality

> $10 million

Major

Severe irreversible disability (>30% of body) to one or more persons Days lost

Moderate

Moderate irreversible disability or impairment (<30% of body) to one or more persons Alternative duties required

Minor

Objective but reversible disability requiring medical treatment No medical treatment required

Negligible

Significant, long term environmental harm. Major release of pollutants or release of pollutants to an extremely sensitive area. Immediate offsite contamination which is beyond the normal combatant resources available at site. Release of pollutants to sensitive areas. Contamination of air, land or water that does not constitute a threat to the offsite environment. Contamination occurs within contained areas and can be managed through normal operations.

Significant adverse national media / public / NGO attention

$1 million to $10 million

Attention from media and / or heightened concern by local community. Criticism by NGOs

$100,000 to $1 million

Minor, adverse local public or media attention or complaints Public concern restricted to local complaints.

Interruption to a material part of operations <1 week Minor loss of production and service to customers. Interruption to a material part of operations <2 hours Minimal loss of production or service to customers.

$10,000 to $100,000 < $10,000

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Table 3 Likelihood Scale Likelihood Almost Certain Likely Possible Unlikely Rare

Indicative Frequency (expected to occur) More than once per month More than once per year More than once every five years More than once every ten years Less than once every ten years

Note: Reference may be required to similar facilities / industries to determine the likelihood of certain events.

Table 4 Risk Level Matrix

Almost Certain Likely Possible Unlikely Rare Negligible High Medium Low Low Low Minor High High Medium Low Low
Consequence Moderate Extreme High High Medium Medium

Likelihood

Major Extreme Extreme Extreme High High

Catastrophic Extreme Extreme Extreme Extreme High

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Projected Risk Rating

Extreme

Strategic
Escalate risk to attention of Board, Executive Chairman, LLT and Risk Management Committee. LLT to revise/ strengthen mitigation strategies to reduce projected risk. Escalate risk to attention of Board, Executive Chairman, LLT and Risk Management Committee. LLT to revise/ strengthen mitigation strategies to reduce projected risk.

Type Of Risk Business

Escalate risk to attention of Board, Executive Chairman, LLT and Risk Management Committee. LLT to revise/ strengthen mitigation strategies to reduce projected risk. Escalate risk to attention of Board, Executive Chairman, LLT and Risk Management Committee. LLT to revise/ strengthen mitigation strategies to reduce projected risk.

Operational
Escalate risk to attention of Board, Executive Chairman, LLT and Risk Management Committee. LLT to revise/ strengthen mitigation strategies to reduce projected risk. Local General Manager to implement detailed mitigation strategies to reduce projected risk to an acceptable level (ie. Moderate or below). If mitigations strategies are not implemented or effective, risk must be escalated to the attention of the LLT. Local General Manager to undertake active monitoring and assurance activities. If existing mitigations not implemented and/or effective: (a)additional mitigations must be developed and implemented (b)the risk must be escalated to the attention of the Executive Chairman and LLT. Accept the Risk. Local management to manage through routine business procedures and contingencies.

Project
Escalate risk to attention of Board, Executive Chairman, LLT and Risk Management Committee. LLT to revise/ strengthen mitigation strategies to reduce projected risk. Project Manager to revise/ strengthen mitigation strategies to reduce projected risk. Risk to be escalated to the attention of the project sponsor for sign off before proceeding with project. If mitigations strategies are not implemented or effective, risk must be escalated to the immediate attention of the LLT. Project Manager to actively monitor risk and existing mitigations. If existing mitigations not implemented and/or effective risk must be escalated to the attention of the LLT.

High

Medium

Nominated risk owner to undertake active monitoring and assurance activities. If existing mitigations not implemented and/or effective additional mitigations must be developed and implemented.

Local General Manager to undertake active monitoring and assurance activities. If existing mitigations not implemented and/or effective: (a) additional mitigations must be developed and implemented (b) the risk must be escalated to the attention of the Executive Chairman and LLT. Accept the Risk. Local management to manage through routine business procedures and contingencies.

Low

Accept the Risk. LLT to review risk annually.

Accept the Risk. Ensure appropriate project contingencies available.

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