Probability/Severity Analysis

31 December 2004

This tool is used to quantify the likelihood (or frequency) and impact (or consequence) of identified risks in order to prioritize risk response activities. Experts advise that the probability should be evaluated first, followed by estimating the potential severity of the consequences. It helps identify the risks that are most urgent or must be avoided, those that should be transferred or reduced, and those it is reasonable to retain.

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