Risk Assessment Format (Risk Register)

(MECON:AQM:F-14)

List of Key Risks & actions planned to mitigate the same

Risk Assessment/ratings Mitigation Planned Status
Risk Risk plan Completion (At the
Ref. Risk Statement Overall
Likelihood Impact average Date end of
No. s every qtr)
score

Opportunities Identified :

(Signature of Risk owner) (Signature of Reviewing Authority)

Name & Designation Name & Designation

Distribution : 1. Controlling Officer 2. Concerned ED/Director

Copy to : MR
 Explanations to the MECON AQM Format, F-14 :
Established hierarchy in the organization to capture Risk & Opportunity
(As per clause 6.1 of AQM)

Business Responsibility Risk & Risk Statements/Descriptions

Hierarchy Opportunity (Indicative)

Strategic CMD, Directors, EDs, Budgets Overdependence on

level Profitability Steel sector & selected
clients.
Very low contribution
from overseas market.
Large amount of Trade
Receivables from clients.
Decreasing profitability in
new order/assignment.
Large external
Dependence for meeting
eligibility criteria
requirements and for
obtaining budgetary
quotes leads to less
chance of submitting
competitive bid
Constant erosion of
Knowledge Base &
attrition/Loss of qualified
engineers at front level
Fierce Competition for
providing Consultancy
services in Core Sector
& Non-Core sector.
Adverse impact on
competitiveness of bid
due to large external
dependence for meeting
eligibility criteria.
Exceeding the Budgeted
estimate
Project All project coordinators Performance Delay in raising invoices
level as per applicability# Efficiency on completion of
services
Issue related to extra
claims
Vendor approval by client
Business Responsibility Risk & Risk Statements/Descriptions
Hierarchy Opportunity (Indicative)
for Packages where
approved vendor list
does not exist in contract
lead to delay in approval
of vendors and ordering
process.
Inconsistent Eligibility
Criteria
Increased expenditure in
Outsourcing of
Consultancy
Assignments.
Department All departments in Resources Technological
level MECON Targets knowledge-gap
Technological
Obsolescence in EPC
Assignments
Preparation of estimates.
Man-hours consumed for
additional jobs
Effective use of
manpower
Delay in releasing
deliverable
Approval of vendor
Process All departments in Evaluation Issues in contract
level MECON having process Assurance formulation with resultant
of EPC, Consultancy, adverse impact on
design, Marketing, MECONs business
Outsourcing, Inspection,
contracting, training,
interest
purchasing, vendor Outsourcing of
approval, PMC, manufacturing in EPC
Customer complaint & Assignments
redressal, internal audit Outsourcing of services
Delay in order placement
may lead to delay in
project execution
resulting in deduction
towards liquidated
damages
Improper compliance to
Business Responsibility Risk & Risk Statements/Descriptions
Hierarchy Opportunity (Indicative)
various Govt.
Regulations may lead to
potential loss & damage
the reputation of
company
Non conformity of
Products
Quality assurance
Competency
Audit findings
Note :
#.Applicability :
Consultancy project (fees above 25 lakh)
EPC project (fees above 1 Cr)

Risk Owner : SIC or Project Coordinator

Reviewing Authority : GM or Office in charge
Review Frequency : Every Quarter

Risk Categories :
1. Strategic level risk
2. Project level risk
3. Department level risk
4. Process level risk

Likely hood rating : to express/describe the frequency/probability of risk assessed in following

five points scale
1. Very low likelihood
2. Low likely hood
3. Moderate likely hood
4. High likely hood
5. Very high likelihood
Impact rating: to express/describe the degree of impact of risk on the company assessed in
following five points scale
1. Very low impact
2. Low impact
3. Moderate impact
4. High impact
5. Very high impact

Overall score: Multiplication of Likely hood rating & Impact rating