Risk Rating or Risk Ranking

What is a Risk Rating? (Risk Ranking)

Risk Prioritization

Risk Rating is assessing the risks involved in the daily activities of an organization and classifying them (low, medium, or high) on the basis of their impact on the organization.

Ranking or prioritizing hazards is one way to help determine which risk is the most serious and thus which to control first.

Priority is usually established by taking into account the employee's exposure and the potential for incident, injury, or illness.

By assigning a priority to the risks, you are creating a ranking or an action list.

Why Risk Rating?

Importance of Risk Rating

It enables an organization/ Employer to look for control measures that would help in curing or mitigating the impact of the risk and in some cases negating the risk altogether.
Risk Rating refers to the classification of risks and their impacts on the business in terms of reputational or economic damage to an organization or a sector.
Organizations should consider in conducting at least a yearly review of the risk rating due to the fast-paced business environment.
It enables a business to be well informed about all the potential risks that can cause an impact to the business along with the likelihood of the event’s occurrence.

Category of Risk Rating

Very Low: A low rated event is one with little / no impact on the business activities and the reputation of the firm. (e.g. on a busy day housekeeping not done) (Fatigue, Dizziness)
Low to Medium: Risk events which can impact on a small scale are rate as low to medium risk. ( e.g. Oil leaked from machine) (an injury that requires first aid only; short-term pain, irritation)
Medium: An event that would result in risks that can cause an impact but not a serious one is rated as medium. (e.g. Machine stopped due to overheating.) (sprain, strain, localized burn, dermatitis, asthma symptoms , injury requiring days off work)
Medium to High: Severe events that can cause a loss of business but the effects are below a risk that is rated as very high. ( e.g. collapse of scaffolding)
Very High: A major event that can cause reputational and economic damage that will result in huge business and client base losses. (e.g. major Fire, toxic gas released.) (major fracture, poisoning, significant loss of blood, serious head injury, or fatal disease)

Likelihood that an adverse event will happen again:

certain: it will happen again and soon;
likely: it will reoccur, but not as an everyday event;
possible: it may occur from time to time;
unlikely: it is not expected to happen again in the foreseeable future;
rare: so unlikely that it is not expected to happen again.

Possible Consequence (as per HSG 245)

1. fatal: work-related death;

2. major injury/ill health: This includes alongwith RIDDOR, Schedule 1), including fractures (other than fingers or toes), amputations, loss of sight, a burn or penetrating injury to the eye, any injury or acute illness resulting in unconsciousness, requiring resuscitation or requiring admittance to hospital for more than 24 hours;

3. serious injury/ill health: where the person affected is unfit to carry out his or her normal work for more than three consecutive days;

4. minor injury: all other injuries, where the injured person is unfit for his or her normal work for less than three days;

5. damage only: damage to property, equipment, the environment or production losses. (This guidance only deals with events that have the potential to cause harm to people.)