project management
Description 1 Tolerable, will not affect the attainment of objective,
2 Minimal, will somehow affect the attainment of objective Low
(1)
Low to Moderate
(2)
Moderate
(3)
Moderate to
High
High
(5)
3 Moderate, will affect the attainment of objective Almost Certain
(5)
LM (5)
M (10)
M (15)
H (20)
H (25)
4 Significant, objectives might not be met Likely
(4) L
(4) LM (8)
M (12)
MH (16)
H (20)
5 Severe, objectives will not be met Moderate
(3) L
(3) LM (6)
LM (9)
M (12)
M (15)
Unlikely (2)
L (2)
L (4)
LM (6)
LM (8)
M (10)
Rare (1)
L (1)
L (2)
L (3)
L (4)
LM (5)
Scoring (Bracket) Priority Level 1-4 Level 3 5-9 Level 2 10-15 Level 2 16-20 Level 1 21-25 Level 1
Definition of Terms Risk - The possibility of an event occurring that will have an impact on the achievement of objectives
Impact - The possible effect of a Risk when it occurred
Likelihood - The possibility of a Risk to occur
Instructions Risk Analysis
Risk Identification
R# - Number or code of the Risk
Risk: Event - Identify the event that might happen which will affect in achieving an objective
Risk: Effect - Identify the effect to an objective if the event happens
Risk Estimation
Impact - Set Impact score based on Table(3rd sheet), use drop-down list
Likelihood - Set Likelihood score based on Table(3rd sheet), use drop-down list
Risk Score - Automatically computes based on the numerical input on Impact and Likelihood
Risk Rating - Automatically rates based on Risk Matrix
Risk Response - There are four general categories of risk responses.
Avoidance - Putting control measures to eliminate or remove the risk
Reduction/Mitigation- Putting control measures to reduce the risk exposure to acceptable threshold or level
Sharing/Transfer - Moving the risk to a third party (e.g. insurance coverage; liability clause in the contract)
Acceptance - This doesn't mean not doing anything. Acceptance strategy involves accepting that the risk is unavoidable but putting necessary contingency measures
RISK ASSESSMENT MATRIX
IMPACT
L IK E L IH O O D