Estimate project risk

Calculating risk, the easy way

“Yesterday’s problem is today’s risk.”

Calculating risk, the easy way

  1. Create a list of all items.

  2. Estimate the risk of each item and their respective probability of happening.

  3. Formula: 1 – (Avg. probability ^ Number of items).

Example 1:

12 items with a 10% average probability gives a 1 – 0.9^12 = 0.71.

This gives a ~70% probability you will be affected by the risk.