Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 1 00:00:01,000 --> 00:00:02,486 Now that we have our risks 2 2 00:00:02,486 --> 00:00:04,324 in standard risk statement form, 3 3 00:00:04,324 --> 00:00:08,191 we can qualify them for subsequent processing. 4 4 00:00:08,191 --> 00:00:12,516 Qualification orders the risks from worst to least, 5 5 00:00:12,516 --> 00:00:16,991 so we can short-list them to the maximum top ten. 6 6 00:00:16,991 --> 00:00:18,714 Why ten maximum? 7 7 00:00:18,714 --> 00:00:21,040 It turns out that in practice, 8 8 00:00:21,040 --> 00:00:24,738 management of ten risks is enough, even on large projects, 9 9 00:00:24,738 --> 00:00:29,488 since any beyond the top ten are always relatively small. 10 10 00:00:30,411 --> 00:00:33,500 Smaller risks beyond the top ten should be addressed 11 11 00:00:33,500 --> 00:00:35,515 by putting time and money to deal with them 12 12 00:00:35,515 --> 00:00:37,567 directly into the project. 13 13 00:00:37,567 --> 00:00:40,773 If they don't happen, you get lucky. 14 14 00:00:40,773 --> 00:00:43,011 So how do you do qualification? 15 15 00:00:43,011 --> 00:00:45,900 The PMBOK says you need a quick scoring system 16 16 00:00:45,900 --> 00:00:49,673 for probability and impact that everyone agrees on. 17 17 00:00:49,673 --> 00:00:53,838 Sometimes that system is just low, medium, or high. 18 18 00:00:53,838 --> 00:00:57,358 Here's a typical system with a bit more granularity. 19 19 00:00:57,358 --> 00:00:59,767 For each of probability, and impact, 20 20 00:00:59,767 --> 00:01:01,522 there is a definition of the score 21 21 00:01:01,522 --> 00:01:03,772 from 1, least, to 5, worst. 22 22 00:01:05,466 --> 00:01:07,168 You quickly score each risk 23 23 00:01:07,168 --> 00:01:10,258 for both probability and impact from this table, 24 24 00:01:10,258 --> 00:01:13,785 or whatever your organization uses as their standard, 25 25 00:01:13,785 --> 00:01:16,232 and then multiply the probability and impact 26 26 00:01:16,232 --> 00:01:19,986 to get a ranking from 1 to 25 for each risk. 27 27 00:01:19,986 --> 00:01:23,438 This is the big innovation in risk management. 28 28 00:01:23,438 --> 00:01:26,043 We don't just consider the impact of a risk, 29 29 00:01:26,043 --> 00:01:29,282 we take probability into account as well. 30 30 00:01:29,282 --> 00:01:31,230 A risk could have a high impact 31 31 00:01:31,230 --> 00:01:34,415 but be very unlikely, whereas another risk 32 32 00:01:34,415 --> 00:01:38,102 could have only a medium impact but be very likely, 33 33 00:01:38,102 --> 00:01:40,563 in which case we should give it more attention, 34 34 00:01:40,563 --> 00:01:43,646 since the probable impact is greater. 35 35 00:01:44,843 --> 00:01:46,981 With a ranking for each risk in hand, 36 36 00:01:46,981 --> 00:01:50,060 we then short-list to the top ten risks maximum 37 37 00:01:50,060 --> 00:01:53,636 for the next step in the process. 38 38 00:01:53,636 --> 00:01:56,236 If you have less than ten risks to start with, 39 39 00:01:56,236 --> 00:01:57,513 you can actually skip this step 40 40 00:01:57,513 --> 00:02:02,013 and go straight to the next step, risk quantification. 3531