Risk correlations

[Karmal S.]

Can I enter correlations between different risks?

[Intaver Support]

For both local and global risks you may enter correlations between different risk. In fact correlations in RiskyProject is implemented by setting up the same seed for different risks. RiskyProject does not ask you to enter a correlation coefficient. All risks have strong positive correlations.

[David]

I did not understand how can I enter information about risk correlations in RiskyProject?

[Intaver Support]

Risk Correlations can be entered in Risk Information Dialog for local and global risks. You may access this dialog by double clicking on RiskID within a list of local risks or in global risk view. You need to select the risk, current risk will be corrected with.

[Sornix]

RiskyProject offers strong positive correlation between risks (coefficient 1). Is it possible to define correlation coefficient not equal 1, for example 0.5?

[Intaver Support]

We did not implement different correlation coefficient simply because our client did not ask about it. However we are planning to implement it next year in RiskyProject 4.

[Intaver Support]

Strong correlation between different risks in most real life project is quite sufficient. For example you have risk "Change requirements". This risk would be strong correlated with risk "Budgetary Problems". Please remember, that correlation does not mean causation. "Change requirements" would not cause "Budgetary Problems" and vice versa. Both risks most likely occur together because they would be triggered by the same factor.

[remi7]

I have the same risk assigned the two different tasks. Are two risk assignments correlated with each each other?

[Intaver Support]

No. Each risk assignment is completely independent. For example risk "Budgetary Problems" can be assigned to task Development and task Implementation. But if "Budgetary problems" occur during development it does no mean that it will occur during Implementation.

On order to correlate risk assigned to different tasks, you should use Risk Correlation tab in Risk Information Dialog (Global and Local Risk Assignment).

[Interstate]

Is it possible to define risk relationships, parent/child etc in RiskyProject. A Risk that can cause additional risks where the first risk is the parent and the second is the child?

[Intaver Support]

In the upcoming version 4, you will be able to clearly identify trigger risks (parent) and residual (child) relationships for a particular risk. You define this relationship in the Properties tab of the Risk Information dialog box.

[RiskUser]

By defining these relationships, does this define an risk event chain?

[Intaver Support]

The new risk form will allow you to define trigger and residual risks for each identified risk. This is for reporting purposes and as seen in the current requirements will not define an actual correlation between the risks for purposes of Monte Carlo simulations.

The ability to define correlations using the risk triggers and residual risks as part of Monto Carlo simulations is currently in our development plans.

Intaver Support

[Intaver Support]

By default in RiskyProject all risks and risk assignments not correlated. For example if risk A assigned to task B and task C, these risk events are not correlated. It is done because very often risk represents very general potential events, such as budgetary problem. Particular manifestation of this event could occur in different period of times.