Risk impact is the consequences of the risk event on

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Unformatted text preview: occur. Risk impact is the consequence(s) of the risk event on you, if it actually happens. Dr. Maged Ezzat Georgy Example 1: Material Shortage Probability of material delay beyond the activity planned planned start date is 20%. This event, if it occurs, will result in: ◦ Two weeks of project delay, and ◦ $50,000 in liquidated damages. Dr. Maged Ezzat Georgy Example Example 2: Productivity Drop Probability of labor productivity drop due to inconvenient inconvenient weather is 30%. This event, if it occurs, will result in: ◦ Increase in the activity duration by 5 days, and ◦ $6,000 in additional expenses. Dr. Maged Ezzat Georgy Representation Representation of Probability Probability & Impact First is to represent the probability and impact in a descriptive/tabular form. Consider material delivery: State Probability Impact Time Cost Delay 20% 2 weeks $50,000 No Delay 80% 0 0 Dr. Maged Ezzat Georgy Representation Representation of Probability Probability & Impact Now, consider labor productivity: State Probability Impact...
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This document was uploaded on 01/22/2014.

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