Risk Glossary of Terms
Risk - The chance that an event will occur that will impact upon the University’s objectives. Risk is measured in terms of consequence and likelihood and the outcomes can be positive or negative.
Risk Assessment - A process used to determine risk management priorities by evaluating and comparing the level of risk associated with an activity against predetermined tolerances or generally acceptable levels of risk (formulated in consultation with key stakeholders).
Risk Management - The systematic application of practices and methods to identify, assess, evaluate, treat, monitor and communicate risk. It is undertaken with the objective of minimising losses or maximising opportunities for the University.
Risk Management Framework - The accountabilities and structures that are directed towards the management of risks associated with opportunities and adverse events within the University environment.
Risk Profile - A representation of risk according to likelihood and consequence. Profiles are used to promote discussion and prioritise risk actions/ responses to risk.
Inherent Risk – the measure of a risk in its natural state, that is where the factors preventing its occurrence or limiting its impact are not under the direct control of the University.
Residual Risk – the measure of risk when the effect of the existing control systems and structure within the University are taken into account.
Risk Appetite – the University’s willingness to accept/ retain the amount of risk exposure, or potential adverse impact from an event.