Friday, December 29, 2017

Risk Assessment Scales

In the PRINCE2 Risk Management Approach, part of the Project Initiation Document (PID), you are asked to define the scales for probability and impact. In the PRINCE2 Risk theme you find an example using five levels of probability and five levels of impact.

This is a easy and straight forward way of scaling probability and impact, and you can make a nice 5x5 probability impact grid for visual purposes. But, PRINCE2 doesn't give you any help to define the levels of impact. Here is one suggestion that might help:

5 Levels of Impact:
Severe: One or more of critical project objectives will not be achieved
Significant: One or more stated project objectives will fall below acceptable level
Moderate: One or more stated project objectives will fall below goals but above minimum acceptable levels
Minor: One or more stated objectives will fall below goals but well above minimum acceptable levels
Negligible: No or little impact on achieving project objectives

For scaling of probability, one would naturally link a definition to a percentage range. Here is one suggestion:

5 Levels of Probability:
80-99% Very Likely
60-79% Likely
40-59% Possible
20-39% Unlikely
1-19% Very Unlikely

Related articles:

PRINCE2 Risk Theme

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