Impact, Probability & Risk Rating Configuration

The use of impact, probability, and risk ratings in project management provides a systematic and data-driven approach to identify, assess, and prioritise project impacts. It empowers project managers to make informed decisions, allocate resources wisely, and develop robust strategies for managing potential threats to project success.

Through the impact, probability & risk rating page; administrators can set which of the impact types will have impact, probability and risk rating fields associated to them, and set custom weightings for risk rating calculations.

Accessing the Impact, Probability & Risk Rating page

• In order to get to the Impact, Probability & Risk Rating setup page, you'll first need to navigate to the Administration Console page from the Avatar menu. 

• Then, navigate to the Project Settings section of the administration console, and click on Impact, Probability & Risk Rating to access the Impact, Probability & Risk Rating page.
  
  

Setting up Impacts, Probability & Risk rating

Within the Impacts, Probability & Risk Rating setup page, you will find three sections (Impact, Probability and Risk Rating) within these sections, you have the ability to  decide which impact types will have impact, probability and risk rating fields associated to them by choosing the impact types in the 'select applicable impact types' field. If this field is left empty, all impact types are applicable. 

Note: Impact will be associated with all impact types by default, Probability & Risk Rating will be associated with the Risk impact type by default. 

	Impact measures how much the risk event could negatively affect the project's objectives or deliverables.
	Probability measures the likelihood that a specific risk event will occur.
	Risk Rating helps prioritise risks based on their potential severity and likelihood of occurrence. Risk Rating = Impact x Probability

• To set up weightings for impact and probability, start by attributing a value to the option ratings. There are default ratings set against Impact (Minor, Moderate, Major and Severe) and Probability (Unlikely, Possible, Very Likely, Almost Certain) however additional rating options can be added at this stage.

    Once you have created a new rating option and the weighting has been defined, click on Add to create the option.

• From here, a default value can be defined to pre-populate an impact value when a new impact (risk, issue, change etc.)  has been created. A default value is mandatory for all impacts.
  
  
  

• Risk Rating includes an additional field for calculating an overall rating of the impact. The functions represented are:

  • Average

  • Multiply

  • Sum
    
    
    
    

Note that if the Impact, Probability & Risk Rating terminology has been renamed in the Project Setup configuration page, the new terminology will be displayed on this page.

Impact, Probability & Risk Rating Bulk Edit 

You can use the bulk edit functionality to create, update or delete impacts, probabilities and risk ratings. 

Select Bulk Edit under the Tools menu to open the bulk edit dialog.

Click on the Download button to download the file. Leave the Include existing data option checked if you want the file to include existing data. Uncheck the option if you want to just view the file template. 

You can find the description of the file columns in the next section. 

Column Description

Impact & Probability Tab

Risk Rating Tab

Rules for Impact Types:

The following options will be applicable as default options for Impacts types:

• Impact will always be applied to Risk and Issue impact types.
• Probability & Risk rating is always applied to Risk impact type.
• In the case of Change, Issue, Dependency, Variance or Lessons Learned impact types - If Impact is applied to the impact type, probability is not applied, and Risk Rating is applicable - the risk rating will be calculated considering probability as the highest value.

Bulk Edit:

• For impacts that do not have values set for Impact/Probability, the default value will be applied.
• For risk impact types that do not have values set for Impact/Probability, the default value will be applied and the risk rating calculation will be derived from the applied default values.