Risk matrix terminology , Project Management

Risk Matrix Terminology 

It is a term where table used in risk analysis in which rows show the risks and columns show their likelihood (probability) of occurrence and their impact. We learnt in the previous section the process involved in risk. We should analyse the risk in three different terminologies. 

?  Pessimistic: The risk and impact are high and you think you will not be able to meet the expected duration. 

?  Expected:  It is the time structure you originally estimated without worrying about risk. 

?  Optimistic: The risk and impact are low and you think you may be able to overcome the „expected?. 

In the risk matrix, high, medium and low denotes risk rankings. In general high is over 50 percent probability and priority, medium is less than 50percent probability and moderate severity and low is less than 10 percent probability and low impact. 

Table : Compare the terms from your Risk Matrix and PERT analysis

56_Risk matrix and Pert Analysis.png

 The risk matrix approaches described in PMBOK and similar sources of risk management information multiply the probability of occurrence of the risk with the impact from the risk to produce a risk index. 

Posted Date: 9/25/2012 7:32:42 AM | Location : United States







Related Discussions:- Risk matrix terminology , Assignment Help, Ask Question on Risk matrix terminology , Get Answer, Expert's Help, Risk matrix terminology Discussions

Write discussion on Risk matrix terminology
Your posts are moderated
Related Questions

What are the important phases of project management? The six phases of project management: Dividing a project within phases makes this possible to lead this in the best poss

What do you mean by variable costs? Variable costs conversely, tend to vary directly along with the volume of output. Illustrations of variable cost are as given below: direct

o Is the business problem that the project addresses clearly defined? o Is the list of stakeholders (ie people affected) by the project complete and correct? o Is the scope o

Cost of Quality In    spite    of   the    number    of   definitions    available    for   quality    much misunderstanding exists about quality. Some of the misunderstandings

Question 1: Distinguish between innovation and renovation within the parameters of facilities planning and design. Question 2: Although security and safety at the work

Question 1: Describe any two standards of data quality Any two of the following Governance and Leadership Policies and Procedures Systems and Processes People

In the face of rising costs, the senior management in PT Company has decided that significant cuts will be needed in the budgets of some of its departments. The promotional budget

Question: Construction of the toy factory has been completed and it is entering its operational phase. The owners do not understand the fuss there is for quality control. (a

Disadvantages of Product Layout - High Overhead charges Due to heavy investment, the overhead fixed charges also tend to be high. A decline in demand for the product will rend