Evaluation criteria
All identified risks are rated on the basis of the probability of the risk taking place, impact in terms of additional project cost, project delay and the impact on the reputation of the project.
Based on a £100m project, the following risk calibration criteria are used in assessing each risk:
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| Probability Calibration Criteria |
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| LEVEL | PROBABILITY |
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| Very High | > 50% |
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| High | 25% to 50% |
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| Medium | 10% to 25% |
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| Low | 5% to 10% |
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| Very Low | 0% to 5% |
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| Impact Calibration Criteria |
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| LEVEL | COST IMPACT | TIME IMPACT | REPUTATION IMPACT |
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| Show Stopper | Impact of Risk fundamentally threatens the viability of the whole project |
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| Very High | > £10m | > 8 weeks | Widespread negative news profile, 3rd party action |
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| High | £5m to £10m | 4 to 8 weeks | High news profile, 3rd party action, public embarrassment |
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| Medium | £2m to £5m | 2 to 4 weeks | Moderate but limited public embarrassment, moderate news profile |
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| Low | £500k to £2m | 1 to 2 weeks | Low impact, low news profile |
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| Very Low | < £500k | < 1 week | No reputation impact of significance |
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An example of a typical Internal Risk Management Register is attached at Appendix 1 for illustration.