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Risk Occurrence and Impact

Risk Occurrence and Impact:
A) There are two elements that define risk in projects:

  • the probability of an adverse event or occurrence
  • the severity and cost of that event or outcome

B) There is usually an inverse relationship between probability and cost/impact throughout the project life cycle:

  • generally speaking, most risks are reduced or eliminated towards the start of a project, but their impact increases the later they occur.
  • can be graphically symbolized:

62_risk occurence.jpg

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