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.