An important topic within the Qualitative Risk Analysis process is the Probability and Impact matrix.
This is basically a table where all the risks are plotted out according to the corresponding values assigned by the team. These values are nothing but the values of probability and impact. Below is how it works,
- For each risk, the team will assign a value for both probability as well as impact. This is typically less than 1
- Once this is done, the data can be arranged in a tabular format. Multiplying the two (P x I) will give the final weight of the risk
- Using the weight of the risks (P x I) you can check where the risk lies in the Probability and Impact matrix. It should be self explanatory that you need to take care of the risks with higher values (and darker background colors!)
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