Define Consequences
Explanation
This activity is used to establish the probable consequences or effects
of a known set of problems. On defining a set of consequences, probability and
impact estimates are made which then calculate risk severity and potential risk exposure.
Entries can be made for Cost, Time or both. Additional consequences can be
registered against categories which are less standard than the usual Cost and
Time, for example, Environmental or Reputation Risk.
Probability estimates can be made using a rating selection such as High, Medium,
Low which is converted into a percentage for the system calculations. Where
there is more accurate data available, the user can alternatively choose to
enter a percentage value - the system then selects the relevant rating selection
from the base data.
Similarly, the cost impact can be entered using a simple rating selection or
else a numerical value in the risk currency can be entered.
Prerequisites
A parent problem record must exist.
System Effects
- When both probability and impact have been entered, the
system is able to assess the potential risk exposure.
- A risk severity rating, if defined, helps to prioritize the risks for
action.
Window
Risk Analysis Navigator
Risk Consequences
Risk Consequence
Related Window Descriptions
Risk
Analysis Navigator/Consequence List
Risk Consequences
Risk Consequence
Procedure
Use the following procedure to define consequences on a problem using the
Risk Analysis Navigator/Consequence List tab.
Note: You can also use the
Risk Consequences
or Risk Consequence
windows to perform this activity in which case the relevant parent records,
Analysis ID and Problem ID, must be selected. Field entry rules
are the same as those defined for the
Risk Analysis Navigator window.
- Navigate to and select the problem node for the risk analysis to add a consequence.
- Click New (F5) to
create a new record. A default value for Consequence ID will appear
for this record, which can be modified if required, to change the display
sequence.
- In the Consequence Description field, enter a description of the
effect that may occur. A value for this field is required.
- In the Probability Percentage field, enter the expected
probability of a consequence happening or else select the Probability
Level ID from the List of Values.
- For the Cost Impact estimate, enter either estimates cost values or
choose a Cost Impact Level from the List of Values. A value
for Total Base Cost must exist before any cost values or cost impact level can be set.
- In the Most Likely Cost Estimate field, enter the cost impact
value most likely expected as a result of the consequence occurring. Note:
If the 3 - Point Analysis method is used, the Min Cost and Max Cost fields
must also have values entered on them in order to calculate the weighted
average.
- Entry of potential time delay needs the Most Likely value for the
selected time unit. As for cost entry, use of 3 - Point analysis method
requires that Min and Max fields are also entered.
- Click Save.