It's totally irrelevant what the CAA or H-C matrices show. The Duty Holders are working to MAA regs, like them or not. CATASTROPHIC/REMOTE in the RA1210 matrix is a 'HIGH' risk which can be held by an ODH. The MAA's tolerability table in RA1210 makes reference only to annual probability of death; it's got nothing to do with individual incident outcomes.
As for ALARP, do you seriously consider it 'reasonable' to ground a combat aircraft for lack of a CWS only 2 years after funding was approved? It's almost impossible to get new kit into service any quicker. Perhaps you would like DE&S to cut some corners?