Agent skill

legal-risk-assessment-severity-x-likelihood-matrix

Sub-skill of legal-risk-assessment: Severity x Likelihood Matrix (+2).

Stars 4
Forks 4

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npx add-skill https://github.com/vamseeachanta/workspace-hub/tree/main/.claude/skills/_archive/business/legal/legal-risk-assessment/severity-x-likelihood-matrix

SKILL.md

Severity x Likelihood Matrix (+2)

Severity x Likelihood Matrix

Legal risks are assessed on two dimensions:

Severity (impact if the risk materializes):

Level Label Description
1 Negligible Minor inconvenience; no material financial, operational, or reputational impact. Can be handled within normal operations.
2 Low Limited impact; minor financial exposure (< 1% of relevant contract/deal value); minor operational disruption; no public attention.
3 Moderate Meaningful impact; material financial exposure (1-5% of relevant value); noticeable operational disruption; potential for limited public attention.
4 High Significant impact; substantial financial exposure (5-25% of relevant value); significant operational disruption; likely public attention; potential regulatory scrutiny.
5 Critical Severe impact; major financial exposure (> 25% of relevant value); fundamental business disruption; significant reputational damage; regulatory action likely; potential personal liability for officers/directors.

Likelihood (probability the risk materializes):

Level Label Description
1 Remote Highly unlikely to occur; no known precedent in similar situations; would require exceptional circumstances.
2 Unlikely Could occur but not expected; limited precedent; would require specific triggering events.
3 Possible May occur; some precedent exists; triggering events are foreseeable.
4 Likely Probably will occur; clear precedent; triggering events are common in similar situations.
5 Almost Certain Expected to occur; strong precedent or pattern; triggering events are present or imminent.

Risk Score Calculation

Risk Score = Severity x Likelihood

Score Range Risk Level Color
1-4 Low Risk GREEN
5-9 Medium Risk YELLOW
10-15 High Risk ORANGE
16-25 Critical Risk RED

Risk Matrix Visualization

                    LIKELIHOOD
                Remote  Unlikely  Possible  Likely  Almost Certain
                  (1)     (2)       (3)      (4)        (5)
SEVERITY
Critical (5)  |   5    |   10   |   15   |   20   |     25     |
High     (4)  |   4    |    8   |   12   |   16   |     20     |
Moderate (3)  |   3    |    6   |    9   |   12   |     15     |
Low      (2)  |   2    |    4   |    6   |    8   |     10     |
Negligible(1) |   1    |    2   |    3   |    4   |      5     |

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