It assigns scores to individuals based on risk factors; a higher score reflects higher risk. The score reflects the level of risk in the presence of some risk factors (e.g. risk of mortality or disease in the presence of symptoms or genetic profile, risk financial loss considering credit and financial history, etc.).
You can find a detailed explanation of how it's calculated below; however, for general reference, a score of 1–3 is considered low, 4–6 is medium, and 7–10 is high.
The CMS-HCC model is normalized to 1.0. Beneficiaries would be considered relatively healthy, and therefore less costly, with a risk score less than 1.0.
At the lower end of the risk scale, a 'broadly acceptable' risk is nearly always defined. This is the risk below which one would not, normally, seek further risk reduction. It is approximately two orders of magnitude less than the total of random risks to which one is exposed in everyday life.
0-6 points (Low risk) 1 in 200 1 in 20 Keep up the good work, make lifestyle adjustments to further reduce risk. 7-15 points (increased risk) 1 in 50 1 in 10 Make lifestyle changes 16-24 points (Moderate risk) 1 in 33 1 in 7 See your GP to discuss your risk and how to reduce it.
High-risk foods are those generally intended to be consumed without any further cooking, which would destroy harmful food poisoning bacteria. High-risk foods include cooked meat and poultry, cooked meat products, egg products and dairy foods. These foods should always be kept separate from raw food.
'AAA' ratings denote the lowest expectation of default risk. They are assigned only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.
0 - 2 Low Risk. 3 - 5 Moderate Risk. 6 - 8 High Risk.
A score in the high 700s or 800s is considered excellent. About a third of consumers have FICO Scores that fall between 600 and 750—and an additional 48% have a higher score. In 2023, the average FICO® Score☉ in the U.S. was 715. Lenders use their own criteria for deciding whom to lend to and at what rates.
: likely to result in failure, harm, or injury : having a lot of risk. a high-risk activity. high-risk investments. 2. : more likely than others to get a particular disease, condition, or injury.
What Does a High VaR Mean? A high value for the confidence interval percentage means greater confidence in the likelihood of the projected outcome. Alternatively, a high value for the projected outcome is not ideal and statistically anticipates a higher dollar loss to occur.
Risk Rating is assessing the risks involved in the daily activities of an organization and classifying them (low, medium, or high) on the basis of their impact on the organization. Ranking or prioritizing hazards is one way to help determine which risk is the most serious and thus which to control first.
Good risk: Weighing all the possible results and being able to come up with (and implement) a solution – difficult though it may be – should the worst case scenario happen. Bad risk: Weighing all the costs and not being able to come up with a plausible solution should the worst case scenario happen.
Risk scores are determined by multiplying the likelihood and consequence scores. The formula is Risk Level = Probability x Impact or Risk = Likelihood x Severity. The resulting score corresponds to a risk rating, often categorized as low, moderate, high, or extreme.
A high risk score generally indicates a larger number of problems with higher risk levels (HIGH or CRITICAL).
Taking Action in Response to Risk Factors
"Too high": These words appearing in your risk factors may indicate that your outstanding card balances are pushing your scores downward or your overall debt level is considered excessive, and your score would benefit by reducing it.
key takeaways
A positive correlation exists between risk and return: the greater the risk, the higher the potential for profit or loss. Using the risk-reward tradeoff principle, low levels of uncertainty (risk) are associated with low returns and high levels of uncertainty with high returns.
Guidance from NICE (National Institute for Health and Care Excellence) suggests that anyone with a score of more than 10% (moderate risk) should be offered help to reduce their risk. This includes advice on making lifestyle changes and we offer the option of starting medication to lower cholesterol (statins).
3 The average (normalized) risk score for the overall FFS Medicare population is set at 1.0; beneficiaries with scores greater than that are expected to have above-average spending (and proportionally higher as well — a score of 2.0 means that costs are expected to be twice the overall average), and vice versa.