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.