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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

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.