$3\mathrm{.}2$Use the evaluation matrix $($table $2)$ to draft a risk and control self$-$assessment for

the company; using the six identified inherent risks, rate the control measures to

determine the priority to manage the residual risk. Complete Table $3$ for your

answer.

Table $2$: Evaluation matrix

IMPACT

$<=5\%6\%10\%11\%15\%16\%20\%>20\%$

$1=$ Negligible $2=$ Can easily

recover

$3=$ High profile

loss

$4=$ It will take

several years

to recover

$5=$ Substantial

threat to the

survival of

businessLIKELIHOOD

Likelihood of occurrence over a $12-$month planning cycle

Highly

unlikely

Unlikely Likely Highly

likely

Certainty

$1=0\%20\%2=21\%40\%3=41\%60\%4=61\%80\%5=81\%100\%$

CONTROLS

Inadequate $=3$ Medium $=2$ Adequate $=1$