grading and mapping risk

Broken Arrow Associates, Ltd.

presents

Grading & Mapping Risk

“Relevant topics in under 5 minutes”


Identifyingpotential risks of all types

as early as possible andgrading them on a scale

for easier management.

Copyright 2013Broken Arrow Associates, Ltd.All Rights Reserved

1. Likelihood risk will occur2. Severity of impact






• 5-point scale (low to high)• Multiply values to get a risk grade• Score from 1 to 25


• 5-point scale (low to high)• Multiply values to get a risk grade• Score from 1 to 25

Plot results on a banded “heat map” like this …



High/Low High/High

Moderate

Low/Low Low/High

Risk of Occurrence

Impa

ct to

Pro

ject



High/Low High/High

Moderate

Low/Low Low/High

Risk of Occurrence

Impa

ct to

Pro

ject

Remember …• Manage your risks closely and often• Update grades when necessary• Don’t ignore the “lower scores”• If a risk happens, it’s now an issue

with a “5” value of occurrence• Keep your stakeholders informed



High/Low High/High

Moderate

Low/Low Low/High

Risk of Occurrence

Impa

ct to

Pro

ject If you can “smell it” it’s a

RISK,

If you “stepped in it” it’s already an ISSUE!



Broken Arrow Associates, Ltd.

Want to know more? Contact:

[email protected]

“Relevant topics in under 5 minutes”

grading and mapping risk

Economy & Finance