IJCA - Volume 2 - Flipbook - Page 37
2023 | Volume 2, Issue 1
B. What they think the Likelihood of Occurrence of
each risk is on a scale of 1% to 100%
For example:
As you can see, the X axis is the Impact, while the
Y axis is the Likelihood. For example, compare the
below table with the following graph:
TABLE 1.
Category
Travel
TABLE 2.
Impact
(1-10)
Risk
Loss of internet
connectivity while
traveling
?
National lockdown
in response to
pandemic
?
Complicated
paperwork
requires too much
time while on the
jobsite, which
prevents project
completion
?
Administrative Contract
employees do not
submit pay cards
on time
?
Service
Completion
37
Likelihood
(1% to 100%)
?
Risk
Identifier
Category
A
Travel
Impact
(1-10)
Likelihood
(1% to
100%)
6
70
National lockdown 7
in response to
pandemic
80
Risk
Loss of internet
connectivity while
traveling
?
B
?
C
Service
Completion
Complicated
paperwork
requires too much
time while on the
jobsite, which
prevents project
completion
8
20
D
Administrative
Contract
employees do not
submit pay cards
on time
3
30
?
Once interested parties have responded with their
input, the next step is to combine responses to arrive
at average values for each aspect for each risk.
Step 4: Quantify Data and Plot Visually
Risks
100
90
B
80
A
70
60
Likelihood
While the responses received for many of the risks
may seem to indicate a straightforward hierarchy,
it is important to double check preliminary results
by plotting the risks and calculating values for each
risk. Once responses are received from all interested
parties, calculate the average values for both Impact
and Likelihood for each of the risks on the list. Once
in a single list, with one value for Impact and one
value for Likelihood for each of the risks, they can be
plotted on a graph similar to the one below:
50
40
D
30
C
20
10
Risks
0
100
0
1
2
3
4
5
6
7
8
9
10
Impact
90
80
Figure 2
70
Likelihood
60
The above graph also demonstrates the four risk
level zones. After plotting the two values on the
graph, each risk falls within a different zone. Risk A is
considered high – medium risk, risk B is considered
high risk, risk C is considered medium risk, and risk D
is considered low risk. For these four risks, it is quite
clear where they fall on the graph; however, what
happens when Impact and Likelihood numbers are
far closer together? Consider the following graph and
table:
50
40
30
20
10
0
0
1
2
3
4
5
6
7
8
9
10
Impact
Figure 1
(1%
