Mitigated Risk Overview
The mitigated risk is a crucial aspect of your Risk Register, as it provides a comprehensive evaluation of the potential risks that your project or endeavour might face, considering both the likelihood and impact after the implementation of control measures. This calculation empowers you to make informed decisions and prioritise your risk management strategies effectively.
Calculation Methodology
The mitigated risk is determined by multiplying the Likelihood and Impact After Controls values and then scaling the result using a predefined rating scale ranging from 1 to 25. This unique approach allows for a nuanced assessment that takes into account the severity of the risk along with its likelihood of occurrence.
Interpreting the Result
The mitigated risk is determined by multiplying the Likelihood and Impact After Controls values and then scaling the result using a predefined rating scale ranging from 1 to 25. This unique approach allows for a nuanced assessment that takes into account the severity of the risk along with its likelihood of occurrence. The calculated mitigated risk value, aligned with the rating scale, helps you categorise and prioritise risks for further action. By understanding the potential consequences despite control measures, you can allocate resources appropriately and develop targeted strategies to manage these risks effectively.
Utilising the Mitigated Risk:
Prioritisation: Arrange risks based on their mitigated risk values to focus on the most critical areas.
Resource Allocation: Allocate resources proportionally to the level of mitigated risk.
Mitigation Strategies: Tailor mitigation strategies to each risk's severity and likelihood.
Reporting and Communication: Communicate the mitigated risk score to stakeholders for transparent risk management discussions.
In sum, the mitigated risk score adds depth and precision to your Risk Register by considering both the impact after controls and the likelihood of occurrence. This rating scale, provides a comprehensive picture of the risks you face and equips you to make informed decisions that steer your organisation towards success while managing potential challenges effectively.