Risk Parameters

The probability of occurrence.  This number is > 0 and < 100%.  

Typically the ranges are:

• 90%  Very High
• 70%  High
• 50%  Medium
• 30%  Low
• 10%  Very Low

The impact of this risk occurring.  The impact depends upon the type of risk.  The risk might relate to cost, lost revenue, complaints, etc.  The same scale can be used to assess these impacts - each assessment needs to have an explanation to be clearly understood.

The typical ranges are:

• Very High
• High
• Medium
• Low
• Very Low

The threshold or trigger for the risk identifies the point or range when a contingency or mitigation action needs to be put in place to protect the team meeting their objectives.

These are set individually for each Risk that has been identified.

The concept of threshold is also related to the concept of Tolerance.  Thresholds could identify the point where a risk is escalated for further management attention or action.

Thresholds may also indicate were the frequency of monitoring is increased or decreased.

A risk owner is identified for each Risk.  

Risks are reviewed at the frequency defined in the operating plan or the project quality plan.

Risk approval is defined in the project organisation as an identifiable responsibility for a role.