Exposure

Exposure field

The monetary impact value for each risk, response action, and response plan calculated from the values selected for the probability and cost impact.

Risk exposure, also known as Value at Risk (VaR), provides data that is generally used during the analysis and prioritization phases of the risk management process. The difference in exposure for a risk and its associated response plan is indicative of the effectiveness of the response plan.

Calculated as probability midpoint times cost midpoint. A midpoint is calculated by adding the lower value and the higher value in the threshold range and dividing the sum by two. The cost midpoint for the highest threshold range is calculated as the midpoint between the lower value in the threshold range and a value that is twice the lower value.

Note:

The cost and probability midpoint for Negligible thresholds is always 0.

For projects calculating cost impact by percentage, the cost threshold range is converted into monetary values by multiplying the lower value and the higher value in the percentage range with the project's Planned Total Cost. These two monetary values are then used to calculate the cost midpoint.