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
Components of Supply Chain Management Today, it is the basic requirement amongst customers that businesses produce defect-free products to the customer faster and be more consi

Some critics have said that the utilization of structured methods, as like SSADM, raises both delivery time and bureaucracy. Do you imagine these criticisms are justified and what

What are the principal problems of managing projects in a fully functional organisation structure? The major problems of functional organisations are to perform with what may b

Part 1- Social Media Strategy Design For this phase of the project you are required to formulate a social media strategy for a product/service/business/concept/charity...etc. th

Project management: a. Describe a project you are currently working on for school or work or your personal hobbies and interests that would benefit from Project Management con

Question 1 For an event manager, organizing an AGM would be a relatively 'dry' affair as the elements of entertainment, decoration and catering are missing in this event (some

Risk Management Responsibilities   Each and every person in the project team has a responsibility of performing a particular task and must indulge in risk management process. T

Disadvantages of Procedures 1) Procedures tend to inhibit rational and logical thinking. The assumptions in the basis of which a procedure was designed might not obtain in all ci

The customer feedback and employee feedback mechanisms are the essential requirements to create customer oriented quality culture. These feedback mechanisms perspectives an ac

ISO standards give tremendous advantages to those holding their certification. Some of these advantages are briefly discussed below for different categories of groups ins