A simple report which captures the assessed effectiveness of the defined risk treatments. It shows the assessed severity of your original risk profile and that same profile after your various treatments (contingency, acceptance, avoidance etc) have been applied.
Let me do a quick example: Risk 9 – Originally a high impact but low probability risk. We aren’t comfortable with the severity of the impact if it occurs (however unlikely). So we decide to talk to an broker and get insurance to cover the cost impact of the risk. You’ll note that the probability hasn’t reduced (as you haven’t taken any action to minimise the likelihood of occurrence) although the impact has reduced significantly to reflect the fact that the insurance you have taken out has minimised the amount you will have to pay should the risk come to fruition. The residual impact may be down to the insurance ‘excess’ you have to pay in the event of the risk being realised.
The definition of an ‘acceptable’ risk profile is down to the project sponsor. But it’s essential that you are aware of that profile so you can manage the risk information effectively and ensure your risk analysis is informed.
