MyNameIsIs,
I do not recall the registration of the aircraft, but heard a similar story to you regarding the cause therefore probably the same incident.
Murray Cod/slow n low,
What you say is indeed correct to a certian point. The severity and risk are inputted and if the resulting risk factor is not in the acceptable range, add some controls and bring it to a number that is. The trouble is that there is no quantitative data to back up the effectiveness of the controls put in place and the resultant risk factor.
Unfortunately, with the survey companies, upper management tend to have no aviation experience and it is left to the poor Chief Pilot and the pilot group to fight a battle where they are outside their weight division as they are typically going up against people higher the organisation then they are.
There are some companies that do it better then others.