S.

NO Risk Area Risk Impact

1 QA Standards Non-Conformance to standards Medium
2 Regression testing Missing important bugs High
3 QA skills QA team not having required skillset High
4

D
Risk Area Risk Impact

High Risk that has

the potential to greatly
impact project cost,
project schedule or
The department or section Describe the Risk performance

Medium Risk that

has the potential to
slightly impact project
cost, project schedule
or performance

Low Risk that has

relatively little impact
on cost, schedule or
performance

Loss of relationship
Human Resource Project Manager may quit value (PENALTY)
Project Delay (15 days)
Loss of quality of
deliverables

**Once you list out all the risk

impacts related to the line item,
please add the weighted costs to
arrive at the total weighted cost
related to the risk.
***Also add up the total
mitigation cost. This should
ideally not be more than the total
weighted cost
 Cost of Risk Probability **Weighted Cost
100000 100% 100000
100000 70% 70000
500000 30% 150000
0
SUM TOTAL OF WEIGHTED
COST 150000

DEFINITIONS
Cost Probabilty of Risk Weighted Cost

Weighted Cost of
Look at cost of High Greater than Risk = Cost of Risk
resources and time <70%> probability of multiplied by
involved occurrence Probability of Risk

Medium Between
<30%> and <70%>
probability of occurrence

Low Below <30%>

probability of occurrence

EXAMPLE
1,000,000 70% 700,000
1500000 70% 1,050,000

0 70% 0
SUM TOTAL OF WEIGHTED
COST 1,750,000
 Risk Mitigation Stratgey ***Risk Mitigation Budget
Establish standards 10000
Begin automation testing 50000
Start a training program to fill the gaps 100000

SUM TOTAL OF MITIGATION BUDGET 160000

Risk Mitigation Stratgey Risk Mitigation Budget

How do I avoid and minimize the damage if the risk How much budget do I assign
happens. to each of these line items

Invest in training of second in line 50000

Provide project completion bonus 50000

Ensure documentation of processes 100000

SUM TOTAL OF MITIGATION BUDGET 200,000