 GOVERNANCE TOOLKIT:

TOOLKIT A GUIDE TO EFFECTIVE GOVERNANCE IN AGED CARE

Risk Matrix – Example

A Risk Matrix is used by governing bodies and management to assess risks and determine the risk rating based on different likelihood and
consequence criteria. It includes likelihood and consequence descriptors for each risk category to assist with the assessment.
Note: The items included in the Risk Matrix below are examples only. It is the responsibility of each provider to develop governance tools such as the
below based on their own unique circumstances.

Consequence Descriptor Table

Consequence Workforce/Safety Clinical Finance/assets Legal
Having multiple risk
5. Significant • Fatality or permanent • Significant governance failing • >15% EBIT Significant prosecution, categories helps to
Brief injury/disability • Consumer fatality/ permanent injury litigation or class action identify the wider
descriptions of • Workforce unavailable to provide • Permanent loss of high- threatening a licence to impacts across the
the impacts services value assets operate business and
across each risk understand the
category are 4. Major • Serious long term physical or • Major governance failing • 10-15% EBIT Major breach involving greatest area of risk.
included for psychological injury • Serious injury/ harm to consumer prosecution or litigation The category with
• Workforce disruption impacting on requiring lengthy hospitalisation • Temporary loss of high-
each value assets the greatest impact
consequence quality of services should inform the
rating to guide 3. Moderate • Short term serious physical or • Some protocol breaches • 5-10% EBIT Serious breach with final risk rating.
risk assessment psychological injury • Temporary injury/harm to consumer regulator notified
ratings. • Workforce gaps not impacting requiring brief hospitalisation and/or • Temporary loss of low-
quality of services medical treatment value assets

2. Minor • Minor injuries requiring medical • Minor protocol breaches • 1-5% EBIT Minor breach with modest
Descriptions of the
attention • Minor harm to consumer requiring fine or penalty incurred
Numbering • Insignificant loss of impacts across each
• No workforce disruption medical treatment
each assets risk category can
consequence include more than
1. Negligible • Minor harm requiring first aid only • No protocol breaches • <1% EBIT Minor breach with no
and likelihood one aspect for each
• No workforce disruption • Minor harm to consumer requiring first penalties
enables a • No loss of assets consequence rating.
aid
numerical score
to be assigned
to each risk
rating, which Likelihood Descriptor Table Likelihood and Consequence Risk Rating Matrix
can be used to
compare risks Likelihood Descriptors Risk ratings are
Likelihood
of the same determined by
rating. 5. Almost certain Is expected to occur in the immediate term 2. 3. 5. Almost
1. Rare 4. Likely finding the risk
(weeks/months) Unlikely Possible Certain rating that
4. Likely Is anticipated that it may occur in the short- 5. Significant Low Medium High Extreme Extreme corresponds with
Consequence

term < 1 year the most closely

4. Major Low Medium Medium High Extreme aligned likelihood
3. Possible May occur in the short to medium term 1-3
Brief and consequence
years 3. Moderate Low Low Medium Medium High
description of description.
the likelihood of 2. Unlikely Is not anticipated to occur in the medium 2. Minor Low Low Low Medium Medium
the risk term 3-5 years
eventuating. It 1. Negligible Low Low Low Low Low
is good practice 1. Rare Is not expected to occur within the medium to
to include a long term > 5 years
timeframe.

RISKGOVERNING
MATRIX - EXAMPLE
BODY 1
SKILLS MATRIX - EXAMPLE