Risk matrix - Revision history

Tkokotas at 12:36, 18 December 2018

2018-12-18T12:36:21Z

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	~~[[Category:Project Management]][[Category:Uncertainty]][[Category:Risk Management]][[Category:Risk]]~~
	To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.		To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.

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	<references/>		<references/>


			[[Category:Project Management]][[Category:Uncertainty]][[Category:Risk Management]][[Category:Risk]]

Tkokotas at 12:36, 18 December 2018

2018-12-18T12:36:06Z

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	''Developed by Artem Chernyshev''		''Developed by Artem Chernyshev''

Tkokotas at 12:35, 18 December 2018

2018-12-18T12:35:53Z

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			''Developed by Artem Chernyshev''


	[[Category:Project Management]][[Category:Uncertainty]][[Category:Risk Management]][[Category:Risk]]		[[Category:Project Management]][[Category:Uncertainty]][[Category:Risk Management]][[Category:Risk]]
	To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.		To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.

Tkokotas at 20:17, 23 October 2018

2018-10-23T20:17:39Z

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	[[Category:Project Management]][[Category:Uncertainty]][[Category:Risk Management~~]][[Category:Risk Matrix~~]][[Category:Risk]]		[[Category:Project Management]][[Category:Uncertainty]][[Category:Risk Management]][[Category:Risk]]
	To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.		To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.

ARCR: /* Introduction and main idea */

2016-09-26T12:14:23Z

Introduction and main idea

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	Any projects during its different lifecycle stage are facing a variety of risks, defined as state of uncertainty where some possible outcomes have an negative effects on objectives, significant loss or other adverse or unwelcome circumstance.		Any projects during its different lifecycle stage are facing a variety of risks, defined as state of uncertainty where some possible outcomes have an negative effects on objectives, significant loss or other adverse or unwelcome circumstance.

	Effective project manager need to be aware about potential types of risks in order to response and prevent unexpected event. This can be achieved by risk assessment process (shown in figure 1) which “aims to improve decision making process by identifying, assessing and mitigating relevant risks in a structured way” <ref name="howtodo"> [''How to Do Projects”] ~~“JoanaGeraldi~~, Chrisitan Thuesen, ~~JosefOehmen~~, Textbook DTU 2016'' </ref>. Each of these activities is very comprehensive and takes a huge amount of resources, money and time consumption. Thus, in order to balance cost, time and resource of particular project, the management have to prioritize risks instead of trying to address each and every risk that particular project might face.<ref name="mindtools"> [''Risk Impact/Probability Chart - Learning to Prioritize Risks ”] https://www.mindtools.com/pages/article/newPPM_78.htm </ref >		Effective project manager need to be aware about potential types of risks in order to response and prevent unexpected event. This can be achieved by risk assessment process (shown in figure 1) which “aims to improve decision making process by identifying, assessing and mitigating relevant risks in a structured way” <ref name="howtodo"> [''How to Do Projects”] “Joana Geraldi, Chrisitan Thuesen, Josef Oehmen, Textbook to 42433 - Advanced Engineering Project, Program and Portfolio Management course, DTU 2016'' </ref>. Each of these activities is very comprehensive and takes a huge amount of resources, money and time consumption. Thus, in order to balance cost, time and resource of particular project, the management have to prioritize risks instead of trying to address each and every risk that particular project might face.<ref name="mindtools"> [''Risk Impact/Probability Chart - Learning to Prioritize Risks ”] https://www.mindtools.com/pages/article/newPPM_78.htm </ref >

	The one of the very useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”.		The one of the very useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”.

ARCR: /* Limitations */

2016-09-26T12:12:37Z

Limitations

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	*''' Subjective classification consequence and probability '''		*''' Subjective classification consequence and probability '''
	Many organizations of risk matrix use a very tailor classification of consequence and probability that tend to be significant variation risk ratings. It based on the subjective human or societal aspects of risk perception such as individual experience, overconfidence or level of control, optimism bias, dread factor and etc.<ref name="~~pmbook~~"> </ref> Therefore before to use risk matrix the user have to be aware and ensure that explanations of embedded judgments express clear and unambiguously. One of the techniques to avoid the subjective perception is to use quantitative data as often as possible.<ref name="nijsjan"> </ref>		Many organizations of risk matrix use a very tailor classification of consequence and probability that tend to be significant variation risk ratings. It based on the subjective human or societal aspects of risk perception such as individual experience, overconfidence or level of control, optimism bias, dread factor and etc.<ref name="howtodo"> </ref> Therefore before to use risk matrix the user have to be aware and ensure that explanations of embedded judgments express clear and unambiguously. One of the techniques to avoid the subjective perception is to use quantitative data as often as possible.<ref name="nijsjan"> </ref>

	*''' Major hazard averse '''		*''' Major hazard averse '''

ARCR: /* Limitations */

2016-09-26T12:11:25Z

Limitations

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	*''' Subjective classification consequence and probability '''		*''' Subjective classification consequence and probability '''
	Many organizations of risk matrix use a very tailor classification of consequence and probability that tend to be significant variation risk ratings. It based on the subjective human or societal aspects of risk perception such as individual experience, overconfidence or level of control, optimism bias, dread factor and etc. Therefore before to use risk matrix the user have to be aware and ensure that explanations of embedded judgments express clear and unambiguously. One of the techniques to avoid the subjective perception is to use quantitative data as often as possible.<ref name="nijsjan"> </ref>		Many organizations of risk matrix use a very tailor classification of consequence and probability that tend to be significant variation risk ratings. It based on the subjective human or societal aspects of risk perception such as individual experience, overconfidence or level of control, optimism bias, dread factor and etc.<ref name="pmbook"> </ref> Therefore before to use risk matrix the user have to be aware and ensure that explanations of embedded judgments express clear and unambiguously. One of the techniques to avoid the subjective perception is to use quantitative data as often as possible.<ref name="nijsjan"> </ref>

	*''' Major hazard averse '''		*''' Major hazard averse '''

ARCR at 12:09, 26 September 2016

2016-09-26T12:09:51Z

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	[[Category:Project Management]][[Category:~~Risk Management~~]][[Category:Risk ~~Matrix~~]][[Category:~~Uncertainty~~]][[Category:~~Risks~~]]		[[Category:Project Management]][[Category:Uncertainty]][[Category:Risk Management]][[Category:Risk Matrix]][[Category:Risk]]
	To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.		To successfully execute its projects, especially in surrounding unstable environment, the companies, need to be aware about significant uncertainties, which will undoubtedly face projects during different stages of its life cycle regardless its complexity and time completion.

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	''However, how to decide and prioritize which risk is more dangerous and need to be treat first? ''		''However, how to decide and prioritize which risk is more dangerous and need to be treat first? ''

	The one of the useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”. It is a common graphical tool used to simply and quickly visualize and categorize already identified risks, source of risks or risk treatments based on its probability and impact on a project. <ref name="ISO10"> </ref>		The one of the useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”. It is a common graphical tool used to simply and quickly visualize and categorize already identified risks, source of risks or risk treatments based on its probability and impact on a project. <ref name="ISO10"> [''Risk Management - Risk assessment techniques''] ''Dansk Standart DS/EN ISO 31010, 2010'' </ref>

	The aim of current article is to give an overview and summary of Risk Matrix. At the beginning, the article will provide briefly introduction to the risk management with its important elements. and the core idea of the risk matrices. Furthermore the article will defined the applications of presented tool as well as a practical usage within Project Management activities. Finally, the strengths and limitations of presented tool will determined and outlined.		The aim of current article is to give an overview and summary of Risk Matrix. At the beginning, the article will provide briefly introduction to the risk management with its important elements. and the core idea of the risk matrices. Furthermore the article will defined the applications of presented tool as well as a practical usage within Project Management activities. Finally, the strengths and limitations of presented tool will determined and outlined.
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	The one of the very useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”.		The one of the very useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”.

	'''Risk Matrix''' ('''Probability and Impact Matrix''') is a broadly used risk assessment tool to define the different levels of risk as the product of the harm probability categories and harm severity categories. <ref name="ISO10"> ~~[''Risk Management - Risk assessment techniques''] ''Dansk Standart DS/EN ISO 31010, 2010''~~ </ref>		'''Risk Matrix''' ('''Probability and Impact Matrix''') is a broadly used risk assessment tool to define the different levels of risk as the product of the harm probability categories and harm severity categories. <ref name="ISO10"> </ref>

	The main aim of risk matrix is to classify and prioritize hazard of adverse events based on the level of risk in order to facilitate management to make decision whether certain risks can be admit or whether not. <ref name="nijsjan"> [''Recommendation on the use and design of risk matrices'] Nijs Jan Duijm, Safety Science 76, p.21-31, DTU, 2015 </ref>		The main aim of risk matrix is to classify and prioritize hazard of adverse events based on the level of risk in order to facilitate management to make decision whether certain risks can be admit or whether not. <ref name="nijsjan"> [''Recommendation on the use and design of risk matrices'] Nijs Jan Duijm, Safety Science 76, p.21-31, DTU, 2015 </ref>

ARCR at 09:06, 26 September 2016

2016-09-26T09:06:46Z

← Older revision		Revision as of 09:06, 26 September 2016
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	''However, how to decide and prioritize which risk is more dangerous and need to be treat first? ''		''However, how to decide and prioritize which risk is more dangerous and need to be treat first? ''

	The one of the useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”.		The one of the useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”. It is a common graphical tool used to simply and quickly visualize and categorize already identified risks, source of risks or risk treatments based on its probability and impact on a project. <ref name="ISO10"> </ref>

	'''Risk Matrix''' ('''Probability and Impact Matrix''') is a broadly used risk assessment tool to define the different levels of risk as the product of the harm probability categories and harm severity categories. <ref name="ISO10"> [''Risk Management - Risk assessment techniques''] ''Dansk Standart DS/EN ISO 31010, 2010'' </ref>

	It is a common graphical tool used to simply and quickly visualize and categorize already identified risks, source of risks or risk treatments based on its probability and impact on a project. <ref name="ISO10"> </ref>

	The aim of current article is to give an overview and summary of Risk Matrix. At the beginning, the article will provide briefly introduction to the risk management with its important elements. and the core idea of the risk matrices. Furthermore the article will defined the applications of presented tool as well as a practical usage within Project Management activities. Finally, the strengths and limitations of presented tool will determined and outlined.		The aim of current article is to give an overview and summary of Risk Matrix. At the beginning, the article will provide briefly introduction to the risk management with its important elements. and the core idea of the risk matrices. Furthermore the article will defined the applications of presented tool as well as a practical usage within Project Management activities. Finally, the strengths and limitations of presented tool will determined and outlined.
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	The one of the very useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”.		The one of the very useful risk assessment tool supports project management to decide which risk need to be consider at first called “Risk Matrix” or also known as “Probability and Impact Matrix”.

	'''Risk Matrix''' ('''Probability and Impact Matrix''') is a broadly used risk assessment tool to define the different levels of risk as the product of the harm probability categories and harm severity categories.		'''Risk Matrix''' ('''Probability and Impact Matrix''') is a broadly used risk assessment tool to define the different levels of risk as the product of the harm probability categories and harm severity categories. <ref name="ISO10"> [''Risk Management - Risk assessment techniques''] ''Dansk Standart DS/EN ISO 31010, 2010'' </ref>

	The main aim of risk matrix is to classify and prioritize hazard of adverse events based on the level of risk in order to facilitate management to make decision whether certain risks can be admit or whether not. <ref name="nijsjan"> [''Recommendation on the use and design of risk matrices'] Nijs Jan Duijm, Safety Science 76, p.21-31, DTU, 2015 </ref>		The main aim of risk matrix is to classify and prioritize hazard of adverse events based on the level of risk in order to facilitate management to make decision whether certain risks can be admit or whether not. <ref name="nijsjan"> [''Recommendation on the use and design of risk matrices'] Nijs Jan Duijm, Safety Science 76, p.21-31, DTU, 2015 </ref>

ARCR: /* Usage of Risk matrix */

2016-09-25T13:45:42Z

Usage of Risk matrix

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	It is it is worth to mentioning the main aim of risk matrix: classification and prioritization the list with already identified risks in order to make decision whether the certain risks can be tolerated. Frequently, in some cases it may be enough merely to rank risks against each other to identify relative prioritisation <ref name="what"> [ '' Whats-right-with-risk-matrices?”] “http://www.jakeman.com.au/media/whats-right-with-risk-matrices” </ref >		It is it is worth to mentioning the main aim of risk matrix: classification and prioritization the list with already identified risks in order to make decision whether the certain risks can be tolerated. Frequently, in some cases it may be enough merely to rank risks against each other to identify relative prioritisation <ref name="what"> [ '' Whats-right-with-risk-matrices?”] “http://www.jakeman.com.au/media/whats-right-with-risk-matrices” </ref >

	In order to concretize how an application of risk matrix can be carried out, an illustrative example of risk matrix is provided below. The example is based on a case project regarding potential threats which may cause new entrepreneurs during launching new start-up related ~~ebusiness~~(online). <ref name="pmbook"> [''Project Management”] “Maylor,Harvey. Project management, Fourth edition, Pearson 2010” </ref >		In order to concretize how an application of risk matrix can be carried out, an illustrative example of risk matrix is provided below. The example is based on a case project regarding potential threats which may cause new entrepreneurs during launching new start-up related e-business(online sales). <ref name="pmbook"> [''Project Management”] “Maylor,Harvey. Project management, Fourth edition, Pearson 2010” </ref >

	The entire process how to appropriate use the matrix can be determined with 5 steps: <ref name="mindtools"></ref >		The entire process how to appropriate use the matrix can be determined with 5 steps: <ref name="mindtools"></ref >