FIRM risk scorecard to determine the level of risk you are evaluating

Riskiness Index

Allocate a score of between 0 and 5 to each component of the generic example of the FIRM Risk Scorecard to determine the level of risk within the organisation, project, operation or location being evaluated.

Financial component of the FIRM Risk Scorecard
Index Description of Generic Risk Score
1.1 Lack of availability (or unacceptable cost) of adequate funds to fulfil the strategic plans
1.2 Insufficiently robust procedures for correct allocation of funds for strategic investment
1.3 Inadequate internal financial control environment to prevent fraud and control credit risks
1.4 Inadequate funds to meet historical liabilities (including pensions) and meet future anticipated liabilities
TOTAL for the Financial component
Infrastructure component of the FIRM Risk Scorecard
Index Description of Generic Risk Score
2.1 Inadequate senior management structure to support organisation and embed 'Risk Aware Culture'
2.2 Insufficient people resources, skills and availability, including concerns about Intellectual Property
2.3 Inadequate physical assets to support the operational and strategic aims of the organisation
2.4 Information Technology (IT) infrastructure has insufficient resilience and/or data protection
2.5 Business Continuity Plans are not sufficiently robust to ensure continuation of organisation after major loss
2.6 Product delivery, transport arrangements and/or communications infrastructure unreliable
TOTAL for the Infrastructure component
Reputational component of the FIRM Risk Scorecard
Index Description of Generic Risk Score
3.1 Poor public perception of the industry sector and/or potential for damage to the brands of the organisation
3.2 Insufficient attention to ethics/Corporate Social Responsibility/Social Environmental and Ethical standards
3.3 Poor governance standards and/or sector is highly regulated with high compliance expectations
3.4 Concerns over quality of products or services and/or after-sales service standards
TOTAL for the Reputational component
Marketplace component of the FIRM Risk Scorecard
Index Description of Generic Risk Score
4.1 Insufficient revenue generation in the marketplace or inadequate return on investment achieved
4.2 Highly competitive marketplace with aggressive competitors and high customer expectations
4.3 Lack of economic stability, including exposure to interest rate fluctuations and foreign exchange rates
4.4 Marketplace requires constant innovation and/or product technology is rapidly developing
4.5 Supply chain is complex and lacks competition and/or raw materials costs are volatile
4.6 Organisation is exposed to potential for international disruption because of political risks, war, terrorism, crime or pandemic
TOTAL for the Marketplace component
Score Description of the level of risk Score Description of the level of risk
0 No risk 3 Medium risk
1 Little risk 4 High risk
2 Some risk 5 Extreme risk