Risk Parameters

This section belongs to Risk Management in Health. It describes how to select values of new risk parameters according to risk management approach.

Specifies the name of the status dimension which the risk affects.
The table lists available status dimensions in alphabetical order.

Specifies the source of risk to identify where the risk originates.

Probability	Description
0.05 - Very low	In your experience of the past projects it never happened, but it could happen.
0.25 - Low	It occurs occasionally.
0.5 - Moderate	Sometimes it happens, sometimes not.
0.75 - High	It mostly happens.
0.95 - Very high	It happened on each project, and you think it will happen again, but there is a chance to escape.

Impact	Impact Effect	Description
1 - small monetary loss or a few days of delay	Very low	Risk impact evaluated as a monetary loss is less than 1% of project budget. Effort to eliminate consequences of the risk incident is less than 1% of total team effort.
2 - manageable monetary loss, or a few weeks of delay	Low	Risk impact evaluated as a monetary loss is around 1-5% of project budget. Effort to eliminate consequences of the risk incident is around 1-5% of total team effort.
3 - heavy loss that doesn't endanger project success on Its own	Moderate	Risk impact evaluated as a monetary loss is around 5-10% of project budget. Effort to eliminate consequences of the risk incident is around 5-10% of total team effort.
4 - a loss that can endanger project success	High	Risk impact evaluated as a monetary loss is around 10-25% of project budget. Effort to eliminate consequences of the risk incident is around 10-25% of total team effort.
5 - causes project failure and possible additional losses	Very high	Risk impact evaluated as a monetary loss is more than 25% of project budget. Effort to eliminate consequences of the risk incident is more than 25% of total team effort.

Strategy	Description
Avoidance	Risk avoidance is elimination (removal) of the risk in such a way that it is no longer applicable to the project. It is the first choice of any risk strategy and can be done by: removing any lack of knowledge, or uncertainty that caused the risk. choosing an approach whereby the risk is no longer applicable.
Reduction	Risk reduction is mitigating, or reducing the risk by reducing the impact, or loss it can cause. The idea is that risks are to be mitigated till the risk exposure is within “acceptable limits”.
Transfer	Risk transfer transfers the liability of the risk to a third party through contractual agreements, insurance, indemnity, warranty, and so on. In such a way you change ownership of the risk. There must be a proper communication and evidence of Risk Transfer.
Acceptance	Risk acceptance is accepting, or retention of the risk and is typically the response after avoidance, transfer and mitigation were considered or tried. It is typical for minor risks and it indicates cases where the cost of any other strategy exceeds the risk itself. There must be a proper communication and approval of Risk Acceptance from the Management (Delivery Supervisor or Account Manager).

Using the in-built rich text editor, type in the following textual information:

To select any action item of risk treatment strategy as Done, you need to open the Edit Risk Details dialog box.

See also:

State	Description
occurred	The risk event happened.
mitigated	Actions were taken to reduce adverse effect of the risk event.
canceled	The risk is not considered as relevant to the project anymore.
treated	Measures to manage the risk were selected and implemented.
open	The risk is considered as relevant to the project.
accepted	The risk is accepted as the cost of any other risk management option outweigh the cost of the risk itself.

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