Identify Potential Risks and Define Consequences
Explanation
This activity is used to register a risk which is the problem combined with
the consequence.Risk Consequence Type can be either
Threat or Opportunity. By performing this task now
have the ability to register the consequence at the same time entering a risk.
For the consequences, Probability and Impact Estimates are made which then calculate
Risk Severity and Risk Cost Exposure/Opportunity Potential.
Probability estimates can be made using a rating selection such as
High, Medium, Low which is
converted into a percentage for the system calculations. Where there is more
accurate data available, you can alternatively choose to enter a percentage
value - the system then selects the relevant rating selection from the base
data.
Similarly, the cost impact can be entered using a simple rating selection
or else a numerical value in the risk currency can be entered.
Prerequisites
The Risk Analysis ID must already exist.
System Effects
- The entered risks will be created with the selected risk consequence
type.
- When both probability and impact have been entered, the system is able
to assess the potential risk cost exposure/opportunity potential based on
consequence type.
- A Risk Severity Rating, if defined, helps to prioritize
the risks for action.
- The Calculated Cost Estimate is calculated to be the
Most Likely Cost Estimate in the case of the Single
Point Analysis method and the Weighted Average
of the cost estimates in the case of the 3-Point Analysis
method.
- The Calculated Time Delay is calculated to be the
Most Likely Time Delay in the case of the Single
Point Analysis method and the Weighted Average
of the time delay estimates in the case of the 3-Point Analysis
method.
- Risk Severity Rating is calculated to be the product
of the Probability Weighting and the Impact Weighting.
- The Risk Assessment Level corresponding to the
Risk Severity Rating is retrieved.