What are the 5 levels of risk? According to project management books they all define the five levels of risk been low, medium, high and extreme high in project management. A low risk is one which can be managed easily and medium requires some level of expertise, high relates to a critical risk and extreme high which is hazardous state a risk can have on the project.
When it comes to risk management, the risk is a potential event have either had a positive or negative effect on your project.Risk management is the process of identification cards and dealing with the events that have an impact on your project before or as they occur. Risk comes in different forms such as employee illness, unexpected expenses, and transport delays to mention a few.
Every project is prone to risks and as a result, the ability to steer a project through risk is undoubtedly among the essential skills any project manager needs to have is learning what are the 5 levels of risk.
The following are the levels of risk
Mild just as the name suggests, is a risk that does not pose much threat to a project, and sometimes it is very difficult to detect it. An example of mild risk is, a team member failing to meet a deadline by hours or days. Though concerning, this risk does not pose great threat to the overall outcome.
This risk poses a bit of a threat but information about the threat it poses lacks details and is inconsistent. Example of mild risk is conflicts between team members. Though they fight, each of them performs his or her duties.
Elevated risk poses disturbances and its threat is felt though it is vague and indirect.
This is a risk whose threat has the potential to harm the overall outcome of a project. Example of a severe risk is injury to key players in the project. Injuries can sideline injured individuals, the action which can hamper the progress.
As the name suggests, extreme risk poses great threat to a project and it could be the final nail to the coffin if the risk is not dealt with.
Project management articles
- Five Ways to Manage Risk
- Project Risk Management
- Project Scope in Software Engineering
- Scope of The Project Example
- Functions of monitoring and evaluation
- Project Management Team Roles
- Constraints Of A Project
- The Elements Of The Project Triangle
- Types Of Stakeholders In A Project
- What Is Involved In Risk Matrix?
- 3 Types Of Project Risk
- Five Stages Of Project Life Cycle
- Importance Of Project Scope
- Similaries and distinction between objective and goals