should you pay maximum attention to a risk that has a 51% probability of occurring, with a loss of 51% of maximum loss? Tip 2: In some industries, you need to pay close attention to even very unlikely risks, where these risks involve injury or loss of human life, for example. Make sure you pay due attention to these risks. To use the Risk Impact/Probability Chart, print this free , and then follow these steps: List all of the likely risks that your project faces. Make the list as comprehensive as possible. Assess the probability of each risk occurring, and assign it a rating. For example, you could use a scale of 1 to 10. Assign a score of 1 when a risk is extremely unlikely to occur, and use a score of 10 when the risk is extremely likely to occur. Estimate the impact on the project if the risk occurs. Again, do this for each and every risk on your list. Using your 1-10 scale, assign it a 1 for little impact and a 10 for a huge, catastrophic impact. Map out the ratings on the Risk Impact/Probability Chart. Develop a response to each risk, according to its position in the chart. Remember, risks in the bottom left corner can often be ignored, while those in the top right corner need a great deal of time and attention. Read for detailed strategies on developing a risk response plan. Key Points To successfully implement a project, you must identify and focus your attention on middle and high-priority risks - otherwise you risk spreading your efforts too thinly, and you'll waste resources on unnecessary risk management. With the Risk Impact/Probability Chart, you map out each risk - and its position determines its priority. High-probability/high-impact risks are the most critical, and you should put a great deal of effort into managing these. The low-probability/high-impact risks and risks are next in priority, though you may want to adopt different strategies for each. Low-probability/low-impact risks can often be ignored.
should you pay maximum attention to a risk that has a 51% probability of occurring, with a loss of 51% of maximum loss? Tip 2: In some industries, you need to pay close attention to even very unlikely risks, where these risks involve injury or loss of human life, for example. Make sure you pay due attention to these risks. To use the Risk Impact/Probability Chart, print this free , and then follow these steps: List all of the likely risks that your project faces. Make the list as comprehensive as possible. Assess the probability of each risk occurring, and assign it a rating. For example, you could use a scale of 1 to 10. Assign a score of 1 when a risk is extremely unlikely to occur, and use a score of 10 when the risk is extremely likely to occur. Estimate the impact on the project if the risk occurs. Again, do this for each and every risk on your list. Using your 1-10 scale, assign it a 1 for little impact and a 10 for a huge, catastrophic impact. Map out the ratings on the Risk Impact/Probability Chart. Develop a response to each risk, according to its position in the chart. Remember, risks in the bottom left corner can often be ignored, while those in the top right corner need a great deal of time and attention. Read for detailed strategies on developing a risk response plan. Key Points To successfully implement a project, you must identify and focus your attention on middle and high-priority risks - otherwise you risk spreading your efforts too thinly, and you'll waste resources on unnecessary risk management. With the Risk Impact/Probability Chart, you map out each risk - and its position determines its priority. High-probability/high-impact risks are the most critical, and you should put a great deal of effort into managing these. The low-probability/high-impact risks and risks are next in priority, though you may want to adopt different strategies for each. Low-probability/low-impact risks can often be ignored.
BCS%20-%20Class%2015.2%20-%20Problem%20Definition%20and%20Decision%20Making%20Tools.docx