Risk Management Template

Risk management process

Risk identification

The major internal and external risk categories have been provided in the below table. Please input appropriate sub-risks of the major category type.

For example:

A major financial management risk is the risk of insufficient cash flows

Risk category	Step 1: Risks	Step 2: Critical success factors	Step 2: Goals	Step 2: Objectives
Internal	Financial management
Human resources-based
Inappropriate business structure
Corporate governance
Management based risks, such as key man risks
Information technology
Operational
External	Regulatory/legislative
Reputation
Competitive risks or competition
Economic
Political
Social changes-based
WHS

Business risk analysis matrix

Now that you have identified the risks under the major risk categories, choose six of the most relevant risks from any of the categories and input them into the risk matrix. Use the risk matrix below and the risk level guide to calculate the risk. Refer to the risk matrix diagram. Where red being severe risk and green being low risk.

Risk [What is the risk? What could this risk result in?]	Likelihood [How likely is this to happen?]	Severity of consequence [What is the severity of the risk? Would it cause a lot of damage?]	Risk level [This number indicates the level of risk.]
[Example: The prolonged use of computer screens could result in headaches, eye strain, blurred vision and neck and back pain.]	Select likelihood	Select level	[Likelihood number x consequence number = risk level]

Risk level guide

Risk level	Priority	Risk level	Priority
1 - 3	Low risk: minimal action required	4 - 8	Medium risk: needs corrective action within 3 months
9 - 12	High risk: needs corrective action within 1 month	13 - 25	Severe risk: needs immediate corrective action

Mitigation of risks

Internal	External
Financial management risks:	Regulatory/legislative risks:
Human resources-based risks:	Reputation risks:
Inappropriate business structure risks:	Competitive risks or competition:
Corporate governance risks:	Economic risks:
Management based risks, such as key man risks:	Political risks:
Information technology risks:	Social changes-based risks:
Operational risks:	WHS risks:

PESTLE analysis

PESTLE analysis	Impact in terms of retail industry
Political
Economic
Social
Technological
Legal
Environmental

Action plan

Risk category	Control/mitigation strategy	Completion date	Responsibility	Resources needed
Internal	Financial management
Human resources-based
Inappropriate business structure
Corporate governance
Management based risks, such as key man risks
Information technology
Operational
External	Regulatory/legislative
Reputation
Competitive risks or competition:
Economic
Political
Social changes-based
WHS