Within Risk Management Planning, it is essential to define risk probability and impact. Commonly an impact scale is developed which reflects the impact of negative impacts of threats or the positive aspects of opportunities. Below is an example which reflects the realive and numeric methods.
Defined Conditions for Impact Scales of a Risk on Major Project Objectives |
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Project Objective |
Very low / 0.05 |
Low / 0.10 |
Moderate / 0.25 |
High / 0.40 |
Very High / 0.80 |
Cost |
Insignificant cost increase |
< 10% Cost Increase |
10 - 25% cost increase |
25 - 40% Cost Increase |
>40% Cost Increase |
Time |
Insignificant time increase |
< 5% Time Increase |
5 - 10% Time Increase |
10 - 20% Time Increase |
> 20% Time Increase |
Scope |
Scope decrease barely noticeable |
Minor Areas of scope affected |
Major areas of scope affected |
Scope reduction unacceptable to sponsor |
Project end item is effectively useless |
Quality |
Quality degradation barely noticeable |
Only very demanding applications are affected |
Quality reduction requires sponsor approval |
Quality reduction unacceptable to sponsor |
Project end item is effectively useless |
This table presents examples of risk impact definitions for four different project objectives |
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Welcome to the Healthcare IT Project Management Blog of Elyse Nielsen. This is the place where I share the ideas I have learned, the things I’d like to remember, and my thoughts for a brighter future. Find out more.
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