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The assessment of project risks and the impact they will have
on a
Project relies heavily on the judgment of the Project
Manager rather than on simple facts and figures.
If
an activity is within your control it is not a risk and
should be managed within your work plan.
Where you have no control over an activity and you think
that there is likelihood of an event happening that will
impact on the project, this is a risk.
The risk needs to be assessed to determine the “impact”
it will have on the project and also to assess the
likelihood of it occurring is e.g. the “probability”.
Below are 2 tables that you may help you rate both the
impact and the probability of a risk.
Impact
Definition Impact the event would have
on the project
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HIGH (H) |
Major impact on the achievement of one or more
of the Project’s objectives |
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MEDIUM (M) |
Significant impact on the achievement of one or
more of the Project’s |
|
LOW (L) |
Not expected to have a significant impact on the
overall achievement of the Project’s objectives |
Probability
Definition: likelihood of the risk
happening
|
HIGH (H) |
More likely to occur than not (>60%) |
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MEDIUM (M) |
Fairly likely to occur (20 - 60%) |
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LOW (L) |
Unlikely to occur but not impossible (<20%) |
Details of the risk should be included in the Project’s
documents.
The identified risk should also be recorded in the Project’s
Risk Register and managed. Appropriate counter measures
need to be planned resourced and implemented where
appropriated to ensure the risks are monitored and
controlled and details are usually captured on the Risk
Register (also referred to as the Risk Management Plan).
Click here to go to the Templates page to view a risk
register template
Go to Project Management Knowledge Base
See also
Go to Analysis Knowledge Base
Go to Process Change Knowledge Base
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