GDM Inc.

The Risk Dashboard Setting in the Risk Manager module allows users with Risk Administrator permissions to configure their corporate Risk Matrix to align with their organization's risk assessment methodology.

Automatic Reconfiguration & Email Notification

When a Risk Administrator makes a change to any of the Risk Dashboard Settings, the system will automatically reconfigure the matrix. The Risk Administrator will receive an email notification shortly after, confirming that the changes have been successfully implemented in the Risk Manager dashboard.

Weighted Risk Score Calculation

This setting provides Risk Administrators with flexibility in determining how the Weighted Risk Scores is calculated. 

By default, the system uses the following calculation:

Weighted Risk Score = (Maximum Likelihood × Weighted Risk weighting for Likelihood) + (Maximum Consequence × Weighted Risk weighting for Consequence)

Users can customize the Weighted Risk for both Likelihood and Consequence in the Risk Profile page (Managing Risk Profiles).  The default weightings are Likelihood (30%) and Consequence (70%)

Optional Setting: Alternative Multiplication Calculation Method

Organizations can choose an alternative formula for the Weighted Risk Score:

Weighted Risk Score = (Maximum Likelihood × Weighted Risk weighting for Likelihood) × (Maximum Consequence × Weighted Risk weighting for Consequence)

This method provides flexibility for organizations that prefer a multiplicative risk assessment approach.

Max Likelihood and Max Consequence Value

This setting determines how Likelihood and Consequence values are selected for plotting risk values in the Corporate Risk Matrix.

The default setting, Largest Max Likelihood & Max Consequence Value, selects the largest Likelihood and Consequence values along a pipeline segment, even if they do not occur at the same geographic location.

Optional Setting: Max Likelihood & Max Consequence Values Used in the Weighted Risk Calculation

As an alternative, users can configure the system to use the Likelihood and Consequence values at the specific location on a pipeline segment where the Weighted Risk Score is calculated. This setting ensures that risk values are tied to precise geographic locations.

Matrix Breakpoint Settings

The Risk Matrix in Risk Manager is a 5x5 matrix with the ability to toggle between Unmitigated and Mitigated Risk views.

By default, the Matrix Breakpoints are determined using GDM Industry Break Points, which are based on an industry analysis of pipeline risk levels across Western Canada. This analysis establishes risk breakpoints that reflect a representative risk distribution across all pipelines in the region.

This setting ensures that clients can compare their pipeline risk levels to broader industry trends, providing a benchmark for risk assessment.

GDM Industry Break Point Overview

Optional Setting: Equal Interval Scaling

With this setting, the Risk Matrix can be switched to Equal Intervals ensuring the risk scores are distributed evenly across the matrix by dividing the range of Likelihood and Consequence values into equal intervals, rather than using the GDM Industry Break Points.  This setting enables a relative risk distribution of corporate pipeline assets.

Risk Administrators can either accept the system-calculated scaling or manually adjust the values using the User Defined Scaling dialog.

Why Scaling Matters? Since risk scores can exceed 5, this function ensures an even risk distribution within the Matrix.

Once the User Defined Scaling values are set they will not change.  Risk Administrators can periodically review the scaling to ensure it aligns with their organization's risk assessment strategy.

Summary of Available Settings