Unformatted text preview: act Matrix
A “matrix form” is then used to classify all risks
identified in the previous stage.
Probability Dr. Maged Ezzat Georgy Low
High Impact Low High ProbabilityProbabilityImpact Matrix
Probability is low.
Impact is high.
Probability Low High High Impact Low Dr. Maged Ezzat Georgy ProbabilityProbabilityImpact Matrix
Probability is high.
Impact is low.
Probability Dr. Maged Ezzat Georgy Low
High Impact Low High Very
High High Moderate Low Very
Low M
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X Impact
Very
High
High Moderate Impact
Low Very
Low M
A
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X Dr. Maged Ezzat Georgy Dr. Maged Ezzat Georgy Very
Low
Low
Moderate
Very
High High Impact M
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X Dr. Maged Ezzat Georgy Scoring and Indexing
Numerical values can also be used to represent the
rating
rating scale. For instance:
◦ Fivepoint scale (1 5) ◦ Tenpoint scale (1 10) The
The scales are used to assess probability and impact. Dr. Maged Ezzat Georgy Scoring
Scoring and Indexing
The values for probability and impact are combined
together to depict the magnitude / severity of the
risk.
For
For instance, multiply the two numbers.
multiply
Probability Impact Magnitude/Severity 1 4 4 3 3 9 5 5 25 Dr. Maged Ezzat Georgy Rating Scales… Again Dr. Maged Ezzat Georgy Rating
Rating Scales… Again Dr. Maged Ezzat Georgy Exercise on Risk Analysis
The Matrix Method Schools
Schools & Industrial Plants
A list of identified risks:
◦ Design changes.
◦ Fluctuation of exchange rate.
◦ Client cash flow problems.
◦ Shortage of skilled subcontractors.
◦ Government bureaucracy (e.g., permits).
◦ Insufficiency of relevant contract terms.
Dr. Maged Ezzat Georgy Schools & Industrial Plants
A list of identified risks (continued):
◦ Material shortages.
◦ Accidents on site.
◦ Technical complexities in execution.
◦ Drop of labor productivity due to weather.
◦ Changes in environmental laws and regulations.
◦ Proficiency of management team.
Dr. Maged Ezzat Georgy Required
Required !!!
Use the matrix method to assess the listed risks for
both
both sectors.
Use a separate matrix for each sector. Dr. Maged Ezzat Georgy End of Week 3...
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 Winter '14
 Ezzat Georgy, Dr. Maged Ezzat Georgy

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