Project Risk Analysis Software and Project Risk Management Software Forum

What is a difference between risk outcome value and risk outcome type?

When we normally discuss risk impacts, typically we talk about risk category (Cost, Schedule, etc.) and the impact to that category. In qualitative assessments typically might be described as having a subjective impact such as serious, or high, which can have different meanings depending upon the risk impact scales used In quantitative risk analysis, however the impacts (outcomes) can be described in various ways. For example a schedule risk could have the following impacts:

• Relative: a % of the activities duration
• Fixed: an absolute number i.e. x days.
• Cancel: the activity is cancelled if the risk occurs
• Restart: The activity is restarted if the risk occurs

So some categories not only can impact a specific risk category, but also a sub category which we call the outcome type e.g Schedule>Relatve delay or Schedule>Fixed delay.

Once the outcome type has been defined, we also need to add outcome value. So for the Risk Outcome type “relative delay” we must define what that delay is. In the example below, we have a risk with 3 risk outcome types each with an outcome value.

Outcome Type: Outcome Value
Fixed delay (schedule): 3 days
Relative cost increase (budget): 30% (of the activities fixed cost budget)
Safety: Minor (scales are defined in Risk Matrix)