Like probability matrixes, assessing impacts can be just as problematic, if there is not a common definition of what each impact level means. In this way, when assessing probability, all team members have a common understanding of the meaning of each category Risk Impact Ranges An example could be as shown below: Label What does Rare or Very Low Probability mean? Therefore, it is recommended that each category has a probability definition. To clarify this we can add additional detail to each probability category so that there is a common understanding i.e. Some methods attempt to improve this by using categories such as Rare, Unlikely, Possible, Probable and Certain however, this still leaves us with the question of defining what these terms actually mean. The problem with these categories is that they can be very ambiguous and have different meanings depending upon who you asks. For example probability could be categorized into 5 levels: Very Low, Low, Medium, High, or Very High. ![]() Risk probability characterizes the chance that a certain event may occur during the course of a project. In quantitative risk assessments, risk probability and impact inputs can be discrete values or statistical distributions. For qualitative risk assessment, risk scores are normally calculated using factors based on ranges in probability and impact. Typically, project risk scores are calculated by multiplying probability and impact though other factors, such as weighting may be also be part of calculation. Risk score is a calculated number (score) that reflects the severity of a risk due to some factors.
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