Estimating the Risk Event Value/Impact
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The risk event value/impact is an estimate of the gain or loss that will be incurred if the risk event should take place. This value will apply to all elements of the project including budget, scope, quality and schedule. To assess the consequences and severity of the risk events, the amount at stake and the criticality of each must be determined. Note that these two variables may vary with time depending on the stage in the project life cycle. In most cases, the amount at stake and criticality can be derived by a simple examination of the available data and some subjective judgment. In complex situations however, it may be necessary to develop some form of mathematical model and to construct and run a series of computer-generated analyses. After identifying risks, the project manager will create a \”Risk Register\” that will be appended to the project management plan. The Risk Register will contain the following information: •List of identified risks •List of potential responses •Root causes of the risks •Updated risk categories During the qualitative phase of risk analysis, the Risk Register will also include the following information: •Priority list of project risks •Risks grouped by category •Risks requiring near-term responses •Risks that need more analysis •Watch list for low priority risks •Trends in qualitative analysis risk
