exercise a qualitative risk management

1. Masterclass Communicative Risk Management with RiskChallenger
© M.A. Buijnsters Exercise A - Qualitative Risk Management PM Day Kiev EN v1.3 MBu.doc Page 1 / 1
Exercise A: Qualitative Risk*
management (15 min)
In order to do a proper qualitative risk analysis, as part of the risk management process, one needs to
establish classes of probability/likelihood and impact for identified risk in order to classify them. Only then
a project team is able to assess the probability/likelihood and impact of a risk along the same baseline and
establish appropriate risk mitigation priority setting.
The probability of the associated risks within these categories may be classified according to the following
probabilities/likelihoods (see table below):
• Highly improbable < 5% i.e. Risk is very unlikely to occur
• Improbable < 25% i.e. Risk is unlikely to occur
• Possible < 50% i.e. Risk may happen occasionally
• Probable < 75% i.e. Risk will likely occur
• Highly probable >75% i.e. Risk will most likely occur
The impact of the risk can be measured and assessed along a number of categories like cost or time
overrun, safety hazard level, quality impact on the project or any other category you, your client or your
management may wish either in absolute or in relative terms.
For this exercise you have to develop a project specific table of impacts for schedule overrun, cost overrun,
safety hazard, quality issue or one of your own in order to their relative impact, which may range from
acceptable to intolerable.
Please think of a project, which you are familiar with and develop a 5x5 qualitative risk assessment table
combining the different levels of the risk categories (1-5) with the associated probabilities/likelihoods and
project control dimensions time, money, safety and quality, and optionally an additional project control
dimension (like reputation etc.)
Please also give it already a thought along which lines your client, your project team or your management
may want to filter the risks, which could be things like: Principal, Client or (Sub- Contractor risk, Project
phase, Geographical area, Technical & Scope risk, Organisation & Schedule risk, HSE risk etc.
Apply the table below (once completed) in your qualitative risk assessment for this project.
Potential risk categories I would like to be able to filter on:
……………………………………………………………………………………………………………………………………………………………………………………………..
Note: You may take up to 15 min for this exercise. Try top limit your time to max. 3 min. per impact dimension classes
(*) Risk is about uncertainty and involves both positive and negative events i.e. opportunities and risks.