Appendix A: Basis of findings rating and report classification

Finding rating matrix Low Impact Medium Impact High Impact

Highly likely

History of regular occurrence of the event.

The event is expected to occur in most circumstances. 
Moderate
Significant
Significant

Likely

History of occasional occurrences of the event.

The event could occur at some time. 
Low
Moderate
Significant

Unlikely

History of none or seldom occurrence of the event.

The event may occur only in exceptional circumstances.
Low
Low
Moderate
Impact Impact Consideration
High

Financial impact likely to exceed $250,000 in terms of direct loss or opportunity cost. Internal Control: Significant control weaknesses, which would lead to financial or fraud loss. An issue that requires a significant amount of senior management/Board effort to manage such as:

● Failure to meet key strategic objectives/major impact on strategy and objectives.

● Loss of ability to sustain ongoing operations: - Loss of key competitive advantage/opportunity - Loss of supply of key process inputs

● A major reputational sensitivity, e.g. market share, earnings per share, credibility with stakeholders and brand name/reputation building. Legal/regulatory: Large scale action, major breach of legislation with very significant financial or reputational consequences.
Medium

Financial impact likely to be between $75,000 to $250,000 in terms of direct loss or opportunity cost. Internal Control: Control weaknesses, which could result in potential loss resulting from inefficiencies, wastage, and cumbersome workflow procedures. An issue that requires some amount of senior management/Board effort to manage such as :

● No material or moderate impact on strategy and objectives.

● Disruption to normal operation with a limited effect on achievement of corporate strategy and objectives

● Moderate reputational sensitivity. Legal/regulatory: Regulatory breach with material financial consequences including fines.