Risk analysis

Analysing the level of risk

To analyse risks, the likelihood of it happening (frequency or probability) and the
consequences is determined, as well as the consequences of them are identified. This is
referred to as the level of risk, and can be calculated using this formula:
level of risk = consequence x likelihood
Level of risk is often described as low, medium, high or very high. It should be analysed in
relation to steps taken currently to control it. The control measures can decrease the level of
risk, but do not always eliminate it.

Likelihood Scale
Level

Likelihood
Very likely
Likely
Unlikely
Very unlikely

4
3
2
1

Description
Happens more than once a month
Happens about once a month
Happens every semester
Has only happened once a year

Consequences scale
Level
4
3
2
1

Consequence
Severe
High
Moderate
Low

Description
Financial losses greater than RM20,000
Financial losses between RM5,000 and RM20,000
Financial losses between RM1000 and RM5,000
Financial losses less than RM1000

Risk rating table

Risk rating
12-16
8-12
4-8
1-4

Description
Severe
High
Moderate
Low

Action
Needs immediate corrective action
Needs corrective action within 1 month
Needs corrective action within 3 months
Does not currently require corrective action

Caf
Risk

Likelihood

Consequence

Ingredient supply cut off because of payment due.

(2) Maybe due to bad overturn.

(4) No ingredient to cook

until payment made

Loss of power supply

(2) Normally only for a short

period of time

Water shortage due to rationing

(4) During the hot season

Supplier went out of business

(1) Very unlikely

One of the best staff quit

(1) Very unlikely

No access to internet

(4) Quite frequent due to Wi-Fi

instability
(3) Very common in the campus
(3) If they hygiene are not taken
cared of
(1) Unlikely if well maintained

(2) Most cooking can still

be done, but comfort will
be affected
(3) No major cooking and
washing
(1) Supplier can be easily
replaced
(3) Due to lack of
manpower
(1) Not much of an effect
of business
(2) Loss of some business
(4) Shop being complained
and closed for inpection
(2) Menu affected as some
food cannot be cooked

Sudden and short lived competition, e.g.: Food fair

Customers discovered dirty food being served
One of the cooking appliances fails

Risk
Rating
8
4

12
1
3
4
6
12
2

Vending Machines

Risk

Likelihood

Consequence

Risk
Rating
8

Food supply cut off because of payment due.

(2) Maybe due to bad overturn.

(4) No food to sell

Loss of power supply

(2) Normally only for a short

period of time

(4) Machines not

operational

Water shortage due to rationing

(4) During the hot season

Supplier went out of business

(1) Very unlikely

Vending Machines being vandalised

(2) Could be possible

(1) Food are precooked;

drinks cannot be served.
(3) Supplier can affect the
quality of food served by
machines
(3) High fixing costs

Vending Machines being blocked off

(3) Due to events or renovation

Suddenly and short lived competition, e.g.: Food fair

Supply food the food is late

(3) Very common in the campus

(2) Depending on the supplier

(2) Machine being less

noticeable and less sales
(2) Loss of some business
(2) Food are perished

6
4