What is meaning Level field used in Risk statement in GRC ,?give realtime example.

[Arun_Manoj]

What is meaning Level field used in Risk statement in GRC ,?give realtime example.

[SANDEEP DUTTA]

Hi @Arun_Manoj ,

The Level Field on Risk Statement or Risk actually helps to define what is the Level of that risk and controls are required to mitigate it . Generally it's defined by your Risk Team of the company.

For example :

Risk level 1: Minimal or low-risk level
The likelihood of occurrence of these risks is low, and the potential impact on business activities is also low. These risks should be monitored, but do not typically require a significant amount of attention or resources to address.

Risk level 2: Moderate or medium-risk level
These risks have a medium likelihood of occurrence and a moderate potential impact on an organization’s business activities. These risks require more attention and resources to address, but they still typically do not pose significant threats to an organization.

Risk level 3: Significant or high-risk level
Risks under this category are those with a high likelihood of occurrence and a significant potential impact on the organization’s business activities. These risks pose significant threats to the organization and require immediate attention and resources to address.

Risk level 4: Extreme or critical-risk level
These are the highest level of risks in risk management. Extreme or Critical risks have both a high likelihood of occurrence and a severe potential impact on the organization’s business activities. These risks require immediate and extensive attention and resources to address. These risks can lead to an organization’s downfall if left unaddressed.

It is important for organizations to have a clear understanding of the four risk levels in risk management to effectively prioritize and allocate resources to address potential risks. By identifying and categorizing risks based on their likelihood and potential impact, organizations can develop strategies to mitigate or avoid these risks altogether. Additionally, regularly reviewing and updating risk management plans can help organizations stay prepared for potential risks and minimize their impact on business activities.