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Risk Ranking,Rating,Score,Exposure are all same?

Posted: Sat Dec 30, 2017 3:22 pm
by ajaynit
are these terms all same:

Risk Ranking,Rating,Score,Exposure?

Re: Risk Ranking,Rating,Score,Exposure are all same?

Posted: Mon Jan 01, 2018 11:37 am
by manishpn
ajaynit wrote:are these terms all same:

Risk Ranking,Rating,Score,Exposure?


they are different

risk score is numerical score based in probability and impact
risk rating is in bands like medium, high low this is again based on score for example a risk factor of 0-20 is low risk, 21-70 is medium and 71-100 is high
risk ranking is simply ranking the risks in chronological order based on score

Re: Risk Ranking,Rating,Score,Exposure are all same?

Posted: Mon Jan 01, 2018 12:09 pm
by ajaynit
thanks Manish Sir .you made it simple for me...

can you please relate (Similarity or diffeence) risk exposure too with these three terms ?

Re: Risk Ranking,Rating,Score,Exposure are all same?

Posted: Mon Jan 01, 2018 6:00 pm
by manishpn
risk exposure is usually calculated at project /program/portfolio/organization level

it basically calculating overall potential LOSS if all the given risks in project occurs
To calculate risk exposure, variables are determined to calculate the probability of the risk occurring. These are then multiplied by the total potential loss of the risk. To determine the variables, organizations must know the total loss in dollars that might occur, as well as a percentage depicting the probability of the risk occurring. The objective of the risk exposure calculation is to determine the overall level of risk that the organization can tolerate for the given situation, based on the benefits and costs involved.