Effective Date: April 1, 2016

Applicable FAM Policies: 130 - Approval Authorities

Applicability: GNWT Departments and Public Agencies

INTERPRETATION

High Risk: Transactions with the following criteria would be considered high risk:

• Highly sensitive transactions, for example, where an error in payment is non-recoverable, or payments which are largely judgmental or subject to interpretation. This category could also include payments of very large dollar amounts or payments that are considered highly prone to error.

Medium Risk: Transactions not considered either high risk or low risk are of medium dollar value and are not highly prone to error.

Low Risk: Transactions with the following characteristics would be considered low risk:

• transactions that are not sensitive in nature, have little or no potential financial loss associated with them, or a low error rate with a low dollar value impact of error or recoverable.

The following is AN EXAMPLE of the type of matrix that might be developed in order to identify risk levels for transactions based solely on the type of transaction and dollar amount.