production costs

2. A definition of that risk in risk management terms

3. Probability, the probability that the risk will occur, from a best judgment of stakeholders or sponsors

4. Impact, the nature of the impact of the risk should a risk event occur, e.g., where and when will the risk "hit us"

5. Severity, how severe is the impact thought to be, e.g., will it be a showstopper

6. Contingency Plan, what can we do to prevent the risk and/or offset it with mitigation

The risk matrix (Table 2-12) does not score the projects; its function is to qualitatively assess each project so that risk and contingency can be included in the decision making or business case made for the new product or new project.

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.

Get My Free Ebook

Post a comment