Applying Probability and Impact

The project risks are rated according to their probability and impact. Risk probability is the likelihood that a risk event may happen, while risk impact is the consequence that the result of the event will have on the project objectives. Two approaches exist to ranking risks:

• Cardinal scales identify the probability and impact on a numerical value, from .01 (very low) to 1.0 (certain).

• Ordinal scales identify and rank the risks from very high to very unlikely.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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