Creating Risk Thresholds

Create risk thresholds to use when creating a risk scoring matrix. When creating risk thresholds, you must define the probability threshold, cost impact threshold by percentage or value, schedule impact threshold by percentage or value, and tolerance threshold. You can also define as many user-defined impacts as necessary.

To create risk thresholds:

1. On the Navigation Menu, expand Administration and click Enterprise Data.
2. On the Enterprise Data page, expand Risks and click Risk Thresholds.
3. On the Risk Thresholds page:
   1. Click Add.
   2. In the Name field, double-click and type a threshold name.
   3. In the Type field, double-click and select a type of risk from the list.
   4. In the Levels field, double-click and select a level number from the list.
4. In the Levels detail window, default values are assigned for the Code, Name, and Range values. Use the default values provided, or double-click any field to customize it.

   Note:

   You can define a color for each threshold level to visually represent the values when working the risk register on the Risks page in the Projects section. However, you should define colors for the tolerance threshold. The colors for the tolerance threshold are used to color the Score field on the risk register on the Risks page. This enables you to easily identify where in the risk scoring matrix this risk falls in terms of severity.

5. On the Risk Thresholds page, click Save.

Tip:

The Cost Impact by percentage and Schedule Impact by percentage options allow you to assess risk without having to define absolute values. This enables you to use the same risk scoring matrix across multiple projects.