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1. Project risk probability and impact matrix upgrade#
2. Project risk probability and impact matrix windows 7#

The red zone is centered on the top right corner of the matrix (high impact/high likelihood), while the green zone is centered on the bottom left corner (low impact/low likelihood). The matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks, respectively. Risk severity matrixįor example, the risk assessment matrix presented above consists or a 5 X 5 array of elements with each representing a different set of impact and likelihood values. The matrix is typically structured around the impact and likelihood of the risk event. Often organizations find it useful to categorize the severity of different risks into some form of risk assessment matrix.

Project risk probability and impact matrix windows 7#

So in the Windows 7 conversion example, the risk detection scale would range from 5= no warning to 1= lots of time to react. Notice that in addition to evaluating the severity and probability of risk events the team also assesses when the event might occur and its detection difficulty.ĭetection difficulty is a measure of how easy it would be to detect that the event was going to occur in time to take mitigating action, that is, how much warning would we have?

Project risk probability and impact matrix upgrade#

The figure below is a partial example of a risk assessment form used on an IS project involving the upgrade from Windows Vista to Windows 7.

Impact Scales of a Riskĭocumentation of scenario analysis can be seen in various risk assessment forms used by companies. The figure below provides an example of how impact scales could be defined given the project objectives of cost, time, scope, and quality. The risk management team needs to establish up front what distinguishes a 1 from a 3 or “moderate” impact from ‘severe” impact.

If, on the other hand, time is more critical than cost, then the impact would be minor.īecause impact ultimately needs to be assessed in terms of project priorities, different kinds of impact scales are used. If controlling cost is a high priority, then the impact would be severe. Impact scales can be a bit more problematic since adverse risks affect project objectives differently.įor example, a component failure may cause only a slight delay in project schedule but a major increase in project cost. Whereas another project may use more precise numerical probabilities (e.g., 0.1, 0.3, 0.5) These definitions vary and should be tailored to the specific nature and needs of the project.įor example, a relatively simple scale ranging from “very unlikely” to “almost certainly” may suffice for one project. The quality and credibility of the risk assessment process requires that different levels of risk probabilities and impacts be defined. If so, then it would be wise for that organization to be proactive and mitigate this risk by developing incentive schemes for retaining specialists and/or engaging in cross-training to reduce the impact of turnover. The risk a project manager being struck by lightning at a work site would have major negative impact on the project, but the likelihood is so low it is not worthy of consideration.Ĭonversely, people do change jobs, so an event like the loss of key project personnel would have not only an adverse impact but also a high likelihood of occurring in some organizations. Simply stated, risks need to be evaluated in terms of the likelihood the event is going to occur and the impact or consequences of its occurrence.