Risk Probability and Impact Assessment for Projects
Risk Probability and impact assessment is a risk assessment technique that is used to evaluate the likelihood of occurrence and potential impact of identified project risks.
The risk probability and impact factors are often ranked either as very high, high, moderate, low and very low or else as numbers from one through ten. Then the probability and impact of risk are multiplied to identify the risk score, which is used to set the priority for each identified risks.
The methods used to assess risk probability and impact include meetings, expert judgement and drawing from historical information.
#1 Expert judgement
One of the ways that a Project Manager can save time when it comes to dealing with risks is through the use of expert opinion. The experts are professionals in their own right. They are in the best position to advice him on the best ways of tackling some of the risks identified for the project.
Meetings are one of the means of identifying and addressing risks for a project. Through the meeting, the project Manager can engage stakeholders as it relates to the risks and they can all work together on how these risks can be eliminated or mitigated.
#3 Historical Records
Historical records are part of Organisational Process Assets of an organisation. This consist of knowledge that they have gathered from previous projects which will guide them when they are handling present projects.
Most times when organisations are faced with challenges, they need to find out if it’s a new occurrence or something that has happened before. If it is an event that the organisation has experienced before, they may have to use the same method that was used to address such issues in the past. This will help in saving time for the project.
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