Risk Assessment Format (Risk Register)

(MECON:AQM:F-14)

List of Key Risks & actions planned to mitigate the same
Risk Ref. No. / Risk / Risk Statements / Risk Assessment/ratings / Mitigation plan / Planned Completion Date / Status
(At the end of every qtr)
Likelihood / Impact / Overall average score

Opportunities Identified :

(Signature of Risk owner) (Signature of Reviewing Authority)

Name & Designation Name & Designation

Distribution : 1. Controlling Officer 2. Concerned ED/Director

Copy to : MR

Explanations to the MECON AQM Format, F-14 :

Established hierarchy in the organization to capture Risk & Opportunity

(As per clause 6.1 of AQM)

Business Hierarchy / Responsibility / Risk & Opportunity / Risk Statements/Descriptions (Indicative)
Strategic level / CMD, Directors, EDs, / Budgets
Profitability / Overdependence on Steel sector & selected clients.
Very low contribution from overseas market.
Large amount of Trade Receivables from clients.
Decreasing profitability in new order/assignment.
Large external Dependence for meeting eligibility criteria requirements and for obtaining budgetary quotes leads to less chance of submitting competitive bid
Constant erosion of Knowledge Base & attrition/Loss of qualified engineers at front level
Fierce Competition for providing Consultancy services in Core Sector & Non-Core sector.
Adverse impact on competitiveness of bid due to large external dependence for meeting eligibility criteria.
Exceeding the Budgeted estimate
Project level / All project coordinators as per applicability# / Performance
Efficiency / Delay in raising invoices on completion of services
Issue related to extra claims
Vendor approval by client for Packages where approved vendor list does not exist in contract lead to delay in approval of vendors and ordering process.
Inconsistent Eligibility Criteria
Increased expenditure in Outsourcing of Consultancy Assignments.
Department level / All departments in MECON / Resources
Targets / Technological knowledge-gap
Technological Obsolescence in EPC Assignments
Preparation of estimates.
Man-hours consumed for additional jobs
Effective use of manpower
Delay in releasing deliverable
Approval of vendor
Process level / All departments in MECON having process of EPC, Consultancy, design, Marketing, Outsourcing, Inspection, contracting, training, purchasing, vendor approval, PMC, Customer complaint & redressal, internal audit / Evaluation
Assurance / Issues in contract formulation with resultant adverse impact on MECON’s business interest
Outsourcing of manufacturing in EPC Assignments
Outsourcing of services
Delay in order placement may lead to delay in project execution resulting in deduction towards liquidated damages
Improper compliance to various Govt. Regulations may lead to potential loss & damage the reputation of company
Non conformity of Products
Quality assurance
Competency
Audit findings

Note :

#.Applicability :

  • Consultancy project (fees above 25 lakh)
  • EPC project (fees above 1 Cr)

Risk Owner : SIC or Project Coordinator

Reviewing Authority: GM or Office in charge

Review Frequency : Every Quarter

Risk Categories :

1. Strategic level risk

2. Project level risk

3. Department level risk

4. Process level risk

Likely hood rating : to express/describe the frequency/probability of risk assessed in following five points scale

  1. Very low likelihood
  2. Low likely hood
  3. Moderate likely hood
  4. High likely hood
  5. Very high likelihood

Impact rating: to express/describe the degree of impact of risk on the company assessed in following five points scale

  1. Very low impact
  2. Low impact
  3. Moderate impact
  4. High impact
  5. Very high impact

Overall score: Multiplication of Likely hood rating & Impact rating