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.