Risk Assessment Format (Risk Register)
(MECON:AQM:F-14)
List of Key Risks & actions planned to mitigate the sameRisk 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
- Very low likelihood
- Low likely hood
- Moderate likely hood
- High likely hood
- Very high likelihood
Impact rating: to express/describe the degree of impact of risk on the company assessed in following five points scale
- Very low impact
- Low impact
- Moderate impact
- High impact
- Very high impact
Overall score: Multiplication of Likely hood rating & Impact rating