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