Kentucky State University Risk Assessment

Overview

The University’s risks are the risks that an action or event will adversely affect its ability to successfully achieve its objectives. During our engagement we became aware of various sources of risk that impact the University. We evaluated these risks by using two distinct assessments of impact and likelihood. A simple rating scale has been developed for this purpose. The rating scale ranges from minor to significant impact, and low to high likelihood, using a 3-point scale. Impact refers to the extent of the consequences or implications if the risk does occur. To assess impact, we have determined how much of an impact the risk has if it does occur:

• A minor impact suggests that the risk would not have important implications on the
• A moderate impact suggests that the risk could have implications for the University’s ability to
• A significant impact suggests that the risk would have important implications on the
• A low likelihood suggests that the risk is unlikely to occur, given its nature and current risk
• A medium likelihood of occurrence suggests that the risk has a moderate probability of
• A high likelihood of occurrence suggests that the risk is likely to occur, despite the current

The Risk Management Tolerance Model and the Risk Assessment Matrix that follows summarizes these risks and assesses their impact and likelihood.