Appendix D: Risk management plan Risk Management Plan How to use this Risk Management Form: Risk Description - Describe risk as "Something might occur that will lead to consequences (positive or negative)" Consequences - "Consequences are the outcomes of events that have an effect on objectives" Risk Control - 'A process, policy, or practice which will reduce the likelihood of risk or which can be used as a corrective action in the event of risk occurring'. Risk Rating - Likelihood - Based on effectiveness of control/ contingency measure, rate likelihood of risk from 1 - 4 as follows: 1 - highly unlikely; 2 - unlikely; 3 - likely; 4 - highly likely Impact - Rate the level of impact each risk may have on your business, using the following scale: 1 - low; 2 - medium; 3 - high Multiply likelihood and Impact ratings to identify risk rating as follows: Likelihood (L) x Impact (I) = Risk rating (R)