Critical Risks

General discussion and questions about project risk management and risk analysis software RiskyProject. Includes discussion on how to perform efficient project risk analysis using our software.

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real
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Joined: Wed Aug 30, 2006 6:51 pm
Location: USA

Critical Risks

Post by real » Tue Sep 05, 2006 1:22 pm

How do you calculate critical risks? How can I see the list of critical risks?

Intaver Support
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Post by Intaver Support » Tue Sep 05, 2006 3:41 pm

Critical risks are calculated as a result of sensitivity analysis. If you have RiskyProject Professional, you can use Sensitivity View to see a tornado diagram which correlation between different risks and main project parameters: project duration, finish time, success rate, and cost. RiskyProject Lite presents you with three critical risks as part of Project Dashboard 3x3.

Sensitivity Analysis shows you the input parameters (task duration, start and finish time, success rate, etc.) that have the most affect on project parameters (total project cost, total duration, project finish time, and success rate). Sensitivity analysis allows you to identify critical risks, which have the potential of significantly affecting your project. These critical risks should be the key focus of your risk mitigation efforts. The results of sensitivity analysis are presented in sensitivity charts.
Intaver Support Team
Intaver Institute Inc.
Home of Project Risk Management and Project Risk Analysis software RiskyProject
www.intaver.com

real
Posts: 2
Joined: Wed Aug 30, 2006 6:51 pm
Location: USA

Post by real » Wed Sep 06, 2006 2:54 pm

Thank you,

What formula do you use to calculate sensitivity coefficient?

Intaver Support
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Post by Intaver Support » Thu Sep 07, 2006 2:51 pm

We use Spearman Rank Order Correlation Coefficient for the sensitivity analysis. We have arrays of data associated with task, duration, task risk outcome, task finish times, task cost, etc. We also have arrays associated with results for the complete project: cost, success rate, finish time, and duration. We calculate correlation coefficients using input and result arrays.

You can find actual formula at:
http://www.mnstate.edu/wasson/ed602spearcorr.htm
Intaver Support Team
Intaver Institute Inc.
Home of Project Risk Management and Project Risk Analysis software RiskyProject
www.intaver.com

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