Risk Analysis and Risk Response
Introduction
The goal of the risk analysis and risk response activity is to provide the consortium with guidelines and instruments for managing the actual and potential risks that can occur during the project's lifetime. The full risk management procedure and methodology is available at DNA1.1.
The contingency planning will be part of the DNA2.4 deliverable and as of type "Other" this page will be used to serve the main content of the deliverable.
Risk Management Methodology
Overview
The evaluation of a risk is performed by identifying the probability of occurrence and the impact for each risk. The probability for a particular source/problem to occur is not a strictly mathematical probability factor. For the majority of the risks there are no formulas or there is not enough experimental data to calculate the probability of occurrence. Thus it is not easily quantifiable. The impact measures the damage that will be caused to the object element in case of occurrence of the risk.
This case of difficult evaluation of the basic metrics of risk evaluation is actually typical in IT project where probabilities are estimated by indirect methods such as “expert” opinions, offers, negotiations etc. In the iMarine case, this activity relies on “expert” opinions that evaluate the risks. Moreover, the terms “probability rank” and “impact rank”, which are more appropriate for the iMarine case, have been adopted. Probability rank liberates the analysis from the strict mathematical terms, which in any case is not objectively useful in this
context, while Impact rank adds a degree of freedom and uses indirect reference to absolute costs of risk appearance. The following table presents the convention defined for risk evaluation.
| Probability Rank | Impact Rank | ||
|---|---|---|---|
| Description | Value | Description | Value |
| None | 0 | None | 0 |
| Very Low | 1 | Doesn’t affect the activity | 1 |
| Low | 2 | Affects the activity but a workaround is not needed | 2 |
| Medium | 3 | Affects the activity and it's recommended to put in place a workaround | 3 |
| High | 4 | Affects the activity and it's mandatory to put in place a workaround | 4 |
| Very High | 5 | Affects the activity that has to be completely rethought | 5 |
| Certain | 10 | Blocks the activity | 10 |
