e.g. Fire, Staff sickness, Drug shortages

It is helpful to quantify the probability of an event occurring.

(1:10,1:100,1:1000,1:10,000,1:1,000,000)

and the hazard (Major, +++Intermediate,++ minor +)

The Consequence is the Probability x The Hazard.

Risk Management is about examing possible risks and then prioritising them in terms of their consequences.

There are never sufficient resources to cope with all the risks adequately. A Manager has to make choices and through Risk management can examine the consequences of each risk in terms of its hazard and probability.