This C x L risk assessment process involves selecting the most appropriate combination of consequence and likelihood levels that fit the situation for a particular objective based upon the information available and the collective knowledge of the group (including stakeholders, academics, managers, industry, researchers and technical staff) involved in the assessment process. Essentially, the higher the probability of a 'worse' effect occurring, the greater the level of risk. The C × L matrix method therefore combines the scores from the qualitative or semi-quantitative ratings of consequence (levels of impact) and the likelihood (levels of probability) that a specific consequence will occur (not just any consequence) to generate a risk score and risk rating. Risk = Consequence x Likelihood where: (i) Likelihood is the Probability of occurrence of an impact that affects the environment and, (ii) Consequence is the Environmental impact if an event occurs.

Risk assessment basically involves the calculation of the magnitude of potential consequences (levels of impacts) and the likelihood (levels of probability) of these consequences to occur. A quantitative risk assessment would require significantly more data which is very often an important constraint. The approach described below can only be used to calculate risk in a semi-quantitative or qualitative way.

Identify critical knowledge gaps, thereby helping to prioritise future research.

Facilitate explicit identification of environmental values of concern.

Allow management agencies to ask 'what if' questions regarding the consequences of various potential management actions.

Highlight the greatest risks needed to support allocation decisions for limited resources.

The risk assessment is a useful management tool which will:

In other words, it is the practice of assessing the impact of uncertainty on achieving objectives, organising information and contributing to the decision-making process. To perform a risk analysis to assess the risk of not achieving the goal set previously, as well as to identify and prioritise those issues where some necessary management actions could be required.

Key Activity Scenario analysis (including risk assessment)

Risk probability vs impact matrix