14 Appendix 3: Sample Risk Assessment
| Probability (1 – 5) | Time Impact (1 – 5) | Cost Impact (1 – 5) | Risk Rating (1 – 25) | Time or Cost Sensitive | Contingency Action | |
|---|---|---|---|---|---|---|
| Funding Items: | ||||||
| Delay on behalf of ACE providing funding | 3 | 5 | 4 | 15 | Time | Liaise with ACE and other key funders |
| Inability of Cinema City to obtain Partnership funding | 3 | 5 | 4 | 15 | Time | Prepare contingency fundraising strategy |
| Third Parties: | ||||||
| Inability to agree site purchase terms | 2 | 1 | 4 | 8 | Cost | Liaise with developer and City Planner. Maintain back-up option 3B |
| Lack of regeneration of surrounding area | 3 | 1 | 4 | 12 | Cost | Produce audience development contingency strategy |
| Statutory Requirements: | ||||||
| Inability to obtain Listed Building Consent | 3 | 5 | 3 | 15 | Time | Consultation with appropiate authorities |
| Inability to obtain other Planning Consents | 3 | 5 | 2 | 15 | Time | Consultation with appropiate authorities |
| Delays with any potential Section 106 Agreements | 2 | 4 | 4 | 8 | Both | Liaise with developer and City Planning |
| Changes in legislation | 2 | 4 | 4 | 8 | Both | Maintain contingency fund |
| Site Issues: | ||||||
| Unforeseen ground conditions | 3 | 2 | 3 | 9 | Cost | Maintain contingency fund |
| Archaeological investigations more extensive than anticipated | 2 | 4 | 3 | 8 | Time | Maintain contingency fund |
| Budgets: | ||||||
| Budget estimate for building works incorrect | 3 | 1 | 4 | 12 | Cost | Market test estimates |
| Budget estimate for equipment incorrect | 2 | 1 | 4 | 8 | Cost | Market test estimates |
| Assessment of inflation incorrect | 3 | 1 | 5 | 15 | Cost | Maintain contingency fund |
| Inability to recover the majority of VAT | 2 | 1 | 5 | 10 | Cost | Maintain contingency fund |
| Project Organisation: | ||||||
| Changes to brief | 4 | 4 | 4 | 16 | Both | Consult with key stakeholders |
| Poor communication between team members | 2 | 3 | 3 | 6 | Both | Produce communication strategy |
| Supply problems | 2 | 4 | 3 | 8 | Time | Maintain back-up suppliers |
| Demand Issues: | ||||||
| Reluctance from distributors to offer “First Runs” | 3 | 2 | 3 | 9 | Cost | Liaise with distributors |
| Fall off in cinema demand from public | 2 | 1 | 3 | 6 | Cost | Monitor local and national trends |
| Other Issues: | ||||||
| Ability to achieve stabilised state | 3 | 1 | 3 | 9 | Cost | Liaise with key funders |
Categories are as follows:-
Probability:
- Very low
- Low
- Medium
- High
- Certain
Risk Rating:
- By multiplying the probability (between 1 – 5) with the worst impact (between 1 – 5) we arrive at a risk rating of between 1 – 25. This will highlight to the team those risks with the highest rating.
Impact:
- Negligible
- Quite Serious
- Serious
- Major
- Show Stopper
Time:
- 0 – 2 weeks
- 2 – 4 weeks
- 4 – 8 weeks
- 8 – 16 weeks
- 16 weeks+
Cost:
- £0 – £10k
- £10k – £25k
- £25k – £100k
- £100k – £250k
- £250k+