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RiskyProject calculation for risks that impact multiple categories
Posted: Sun Apr 16, 2017 8:50 pm
How normalization of risk impact if perform if we have impact affecting multiple risk categories
Re: RiskyProject calculation for risks that impact multiple categories
Posted: Sun Apr 16, 2017 8:53 pm
RiskyProject risk scores are based upon a Spearman Rank Order algorithm which is then normalized. See “How are risk probabilities, impacts, and scores calculated for quantitative analysis?” in the Frequently Asked Questions section of the User Guide.
To distill this, RiskyProject measures the correlation of the risk impact on each category. For cost and schedule, this is explicit units (hours, $) For qualitative categories and analysis, RiskyProject assigns each category 100 units. For example if you have a risk that has a 50% chance of having a 50% impact on Safety. The risk score would be 25%.
When a risk impacts multiple risk categories, each risk category score is multiplied by its relative importance coefficient as defined in the Risk Weighting dialog box and then normalized. Using the relative risk weighting as shown below, any risks that impacted Safety would have a relatively higher risk score than risks that did not. Conversely, risks that impacted Schedule, would have a relatively lower risk score.