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Risk score calculation algorithm
Posted: Tue Aug 16, 2016 3:08 pm
What is the risk score calculation algorithm in RiskyProject if I have risk which belong to different categories?
Re: Risk score calculation algorithm
Posted: Tue Aug 16, 2016 3:39 pm
Risk score is calculated as probability multiplied on impact. In example below risk 'Delay in Financing' has a probability 65% impact 52%. The score equals 33.8%. However if risk affects multiple categories the calculation is a little but more complex. Risk impact for each risk category is multiplied on weight or 'overall importance' of each category. Weight is calculated using matrix, which can be found at Risk -> Risk Categories -> Weights. Then impacts for all categories are summed together. Finally they are normalized such way maximum impact cannot be greater than 1. Then scores for each risks are calculated.