Risk Analysis – Qualitative, the probability/impact matrix
The P/I matrix is the simplest and most effective tool for use by project teams to assess risk. They start by looking at the WBS and assessing risk in tasks at the lowest level. What is the probability that a risk will occur? If it does occur, how bad will it be? “High-high” risks should be re-planned to lower the likelihood that they will occur, or lessen the severity. This is called Mitigation. “Medium-medium risks should be addressed with a contingency plan, but not necessarily be re-planned. “Low-low” risks can be accepted – you can’t watch everything.