The level at which risk becomes acceptable or tolerable Whether combinations of

The level at which risk becomes acceptable or

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The level at which risk becomes acceptable or tolerableWhether combinations of multiple risks should be taken into account, and if so, how and which combinations should be considered.Information needed for assessment and treatment
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11A general process to follow in setting risk criteriaRules for EvaluatingDecide the rules against which the expression will be assessedExpress RiskDecide how risk level will be expressed by combining consequence and likelihoodDetermine LikelihoodDecide how likelihood will be expressed for each outcome and consequenceDetermine ConsequenceSelect measures and scales for each outcome to characterize consequenceLink Objectives to OutcomesIdentify objectives and list outcomes sought for each objectiveRefer Week 6
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Determining Consequences
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13Objectives, outcomes and measuresAn organization’s objectives (i.e. its highest expression of intent) will be expressed in its strategic and business plans, its mission and values statements and various key performance metrics that it holds itself and its people to.However, for risk management purposes (via determining the risk criteria) we must ensure there is a clear understanding of the specific outcomes needed to attain each objective, how it is to be measured, and the likely range of outcomes.Because there may be more than one possible outcome for each objective, a decision must be made on the most relevant outcome(s) to align most closely to the intent of the objective, as discussed with stakeholders, and agreed with senior management.“What is not measured is not managed”.Defining risk criteria brings rigour to the intent of achieving objectives.
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14Hypothetical Example:- MineRight LimitedMineRight Limited is committed to successful realization of its mission to obtain the maximum value inherent in its property. MineRight Limited also has a vision of being the leading mining company of its peers in terms of growth, productivity, safety, environmental management and stakeholder relationships.Consequently, the current, three-year strategic plan describes its objectives as shown in Table C1, the outcomes it seeks and the way it will measure its achievements. The measures in the third column are also used to express consequences.MineRight Limited is committed to successful realization of its mission to obtain the maximum value inherent in its property. MineRight Limited also has a vision of being the leading mining company of its peers in terms of growth, productivity, safety, environmental management and stakeholder relationships.Consequently, the current, three-year strategic plan describes its objectives as shown in Table C1, the outcomes it seeks and the way it will measure its achievements. The measures in the third column are also used to express consequences.
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  • Spring '19
  • risk principles

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