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Risk Scoring Options
Posted: Wed Feb 06, 2019 3:08 pm
Which risk scoring method should I use?
Re: Risk Scoring Options
Posted: Wed Feb 06, 2019 3:11 pm
This answer will focus on the two risk scoring methods available in the Format Risk > Advanced Settings dialog pictured below.
The two risk scoring methods are:
Method 1 - Combined impact: maximum impact of all categories, and
Method 2 - Combined impact: sum of impacts in each category and then normalized.
So what is the difference? Let’ s take a look at a simple example for the same risk using the standard 1-5 assessments for probability and impact, where 1 is lowest and 5 is highest.
What we can see is that with the scoring method 1, the Risk score does not change even though impacts to the Schedule and Performance are significantly higher. Whereas, scoring method 2 incorporates the assessment for all impacts and provides a scores that reflects the overall impact of the risk.
For quantitative risk assessments, we always recommend Method 2 as it provides a more accurate assessment and therefore ranking and prioritization of the risk.