Buisness Plan: Financial Planner

When preparing the critical risks list, its important to mention those risk that have the most potential to impact your business plan project positively or negatively. Identifying critical risks is a process of prioritization and this an output of qualitative or quantitative risk analysis. Risk prioritization facilitates the process of risk mitigation and response planning. There are several tools which can help with risk prioritization, particularly the risk register and the risk matrix, following we show how to build each one.

Risk Matrix

S E V E R I T Y		Probability of occurrence
	Risk Assessment Matrix	Very unlikely to happen	Unlikely to happen	Possibly could happen	Likely to happen	Very likely to happen
	5. Catastrophic (e.g fatal)	Moderate	Moderate	High	Critical	Critical
	4. Major (e.g permanent disability)	Low	Moderate	Moderate	High	Critical
	3. Moderate (e.g Hospitalisation/short- or long-term disability)	Low	Moderate	Moderate	Moderate	High
	2. Minor (e.g First Aid)	Very Low	Low	Moderate	Moderate	Moderate
	Superficial (e.g no treatment required)	Very Low	Very Low	Low	Low	Moderate

Risk Register

Critical risk	Severity (From 1 to 5 being 1 the less critical and 5 the most)	Probability of occurrence (from 1 to 5, being 1 the less probable and 5 the most)
A
B
C
D
E