Entering Risk Evaluation Basic Data—Exercises

Main Exercise

Purpose: The purpose of these exercises is to enter risk evaluation basic data.

Windows:
Risk Basic Data

Defining Risk Default Settings

  1. Open the Risk Basic Data window, and click the Risk Default Settings tab.
  2. In the Analysis Method field, select either Single Point Analysis or 3-Point Analysis. This will be the default analysis method given to newly created risk analyses.
  3. In the Analysis Max Weight Factor field, enter the weight factor for the maximum cost estimate. This value is used to calculate the Calculated Cost Estimate if 3-Point analysis is used.
  4. In the Analysis Min Weight Factor field, enter the weight factor for the minimum cost estimate. This value is used to calculate the Calculated Cost Estimate if 3-Point analysis is used.
  5. In the Analysis Nor Weight Factor field, enter the weight factor for the most likely (normal) cost estimate. This value is used to calculate the Calculated Cost Estimate, if 3-Point analysis is used.
  6. In the Review Period (Weeks) field, enter the default period between assessments of risk analyses. This will be the default review period given to newly created risk analyses.
  7. In the Time Unit field, enter the default time unit used for time delays entered on risk consequences.
  8. In the Week Day Conversion field, enter the conversion for weeks to days. For example a value of 5 means that 1 week is converted to 5 days. This conversion is used to calculate net potential delay when the Time Unit is weeks.
  9. Save the record.

Creating Probabilities

  1. Open the Risk Basic Data window, and click the Probability tab.
  2. Create a new record.
  3. In the Probability Level ID field, enter a number for an ID that the probability record should take.
  4. In the Probability Min field, enter the minimum value for the probability level.
  5. In the Probability Max field, enter the maximum value for the probability level.
  6. In the Probability Level field, enter a description of what level the probability level ID represents. (e.g. Very Low, Low, Moderate, High, Very High)
  7. In the Probability Weighting field, enter a value that the probability record should take.
  8. Save the record.
  9. Repeat steps 2 through 8 to create multiple probability levels.

Creating Impact Levels

  1. Open the Risk Basic Data window, and click the Impact Levels tab.
  2. Create a new record.
  3. In the Impact Level field, enter a description of the level you want to add. (e.g. Very Low, Low, Medium, High, Very High)
  4. In the Impact Weighting field, enter a value that the impact level record should take. This adds a numerical value to the impact level record which can be used with the Probability Weighting in calculations.
  5. In the Cost Value Fraction field, enter a value for the measurement of the impact against the total contract or project value. This value is used to work out how serious the impact may be based on the relative impact.
  6. Save the record.
  7. Repeat steps 2 through 6 to create multiple impact levels.

Creating Risk Assessment Levels

  1. Open the Risk Basic Data window, and click the Risk Assessment Levels tab.
  2. Create a new record.
  3. In the Risk Assessment Level ID field, enter a number that you want to assign as the ID for the particular record.
  4. In the Risk Severity Rating Min field, enter a value that the risk assessment level record should take.
  5. In the Risk Assessment Level field, enter a description for the level you want to add. (e.g. Trivial, Minor, Moderate, Important, Serious, Critical)
  6. Save the record.
  7. Repeat steps 2 through 6 to create multiple assessment levels.