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 is the importance of man power planning in human resources management? Significance of Man Power Planning within Human Resources Management is as illustrated here: a. M

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

Explain about the changing information technology. Changing Information Technology: Challenges and Prospects There is no suspicion that information technology has create

Question: (a) (i) What do you meant by "a change of scope" in a project? (ii) Unplanned changes (for e.g, unplanned expenses) might occur during the implementation phase of

What do you mean by Line Balancing in management? Line Balancing: It means balancing the line among the product lines or assembly lines. This aims at grouping assists an

Question 1: (a) There are clear messages given to managers as far as how should rewards be. Elaborate on these messages. (b) Illustrating your answer with relevant examples,

There are also seven decide modules on our model. The first one decides whether patients need a wheel chair or not; if yes, they will be sent to a clerk who is responsible for spec

Once the process capabilities of available processes are known the process selection is then just a question of matching the process capability with the tolerance specified

Explain the terms "product" and "work package" and describe how these are related to each other. A product is a particular deliverable from a project and this may also make a wo

Step in Process Selection 1. Establish the process Selection: A preliminary decision regarding process can be taken from but it stand point of function, economy, appearance