Risk management

This initial high-level risk assessment provides an initial framework across general risk categories for identifying, assessing, and prioritising key risks associated with the rollout of the universal water metering project.  It serves as a starting point for risk management and will be reviewed and refined in subsequent stages of the business case process.  

As the project progresses, particularly through market engagement and detailed design, new risks may emerge, and current assessments may change and become more detailed and granular.  Ongoing risk development will ensure it remains fit for purpose, aligned with the project's evolving scope, and responsive to stakeholder feedback and technical findings.

Risk scoring matrix

Each risk is evaluated based on two dimensions: likelihood (the probability of occurrence) and impact (the severity of consequences), with each rated on a scale of Low (1), Medium (2), or High (3) as shown in Table 16 below.  The resulting risk rating is calculated by multiplying the likelihood and impact scores, producing a total risk score between 1 and 9. This enables the categorisation of risks into low, moderate, and high bands to support informed decision-making and risk mitigation planning.

Risk Assessment Example