What is a risk class?
A risk class, what is it?
The risk class shows the expected impact of a risk on the project. This risk magnitude is determined using two criteria:
- Chance of occurrence; what is the likelihood that a risk will occur?
- Risk effect; what is the effect if a risk takes place?
If the chance and effect increase, so does the risk class. A risk class has a value in the range of low to fatal when a risk would have a negative impact. If a risk has a positive impact, the risk class is in the range of minor opportunity to great opportunity.
A third criteria is sometimes used to determine the risk class, specifically the ability of the project team to influence the risk. If the project team has little control over a risk, it is worse for the project.
other questions about project risk management
- What is a project risk?
- How can I detect risks?
- What is the essence of risk management?
- How can I analyze risks?
- How can I prioritize risks?
- What is a risk status?
- Risk identification methods
- evaluate a project
- monitoring a project
- the role of team members
- What role do projectpartners have in managing project risks?
- How can I setup risk management in my company?