Risk matrix terminology , Project Management

Assignment Help:

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. 


Related Discussions:- Risk matrix terminology

What are the contents of post completion report, What are the contents of p...

What are the contents of post completion report? Contents of a PC (post completion) report: a. Outcomes documented through staff appraisals undertaken b. Stakeholder surv

Various types of customer for a system development project, How many variou...

How many various types of customer may there be for a systems development project? Who are they? Depending onto the exact project, the ‘customers’ could comprise some or all o

What are the advantages of critical path analysis, What are the advantages ...

What are the advantages of critical path analysis? Advantages of critical path analysis (CPA): a. Classifies interrelationships in between various activities or tasks

What do you mean by fixed costs, What do you mean by fixed costs? Fix...

What do you mean by fixed costs? Fixed Cost: Cost may be described as the amount of expenditure incurred upon, or attributable to a specified thing. Fixed costs are such

PMP, A good leader is not necessarily a good manager.” Discuss this stateme...

A good leader is not necessarily a good manager.” Discuss this statement & compare leadership With management.

Implement a cost effective training and development plan, Question 1: W...

Question 1: What are the challenges an HR manager may confront when it comes to managing people dealing with cultural diversity? Question 2: One of the HR practices in

Reduce inspection cost by acceptance planning, R educe inspection cost by ...

R educe inspection cost by acceptance planning In few cases where there are number of methods, available to protect the supplier and the customer from poor quality, it so happ

Describe the organisational culture, 1. Briefly trace the development and g...

1. Briefly trace the development and growth of Walmart from 1969 to the present through the application of corporate strategies - what types of strategies have these been? 2. Th

Transaction cost theory could help the head of insurance, The Head of Insur...

The Head of Insurance at JKL Bank has been considering how to make efficiencies in the operation of the Car Insurance Business Unit. One option under consideration is to outsource

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd