Risk exposure vs Risk ranking

Submitted by Sam82 on Sat, 04/18/2015 - 05:47

The Qualitative risk analysis gives us risk ranking of the project, while quantitative gives us the risk exposure of the project !!!

what is the difference between risk exposure and risk ranking ?!? 

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poonam713

Sat, 04/18/2015 - 16:03

Risk ranking is determining the risk rank based on probability and impact. either in that project and/or all projects in that organisation- This is achieved through Qualitative risk analysis


Risk exposure is determining the quantitative impact {EMV} of that risk. If that risk had to occur what would be the financial impact of that risk, typically a profit or a loss. Since quantitative analysis provides the numerical value of that risk, risk exposure is determined in the Quantitative Analysis process.


 


Thanks

Sam82

Sun, 04/19/2015 - 06:46

Daer poonam713,

Thank you for answering. Howeverm your answer is only the definition of the processes and I can not find still the difference between Risk Exposure and Risk Ranking.

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admin

Sun, 04/19/2015 - 08:33

Say you have 2 risks 

Materials may not arrive on time impacting $400 

Labor may not be there impacting $400

Now considering exposure maybe same for both above risks. you will have to Rank which one needs to be taken care of first, or which of the two is of higher importance.  It can be based on factors like

  • Event Likelihood
  • Time to Impact
  • Financial Severity
  • Injury Severity
  • Reputational Impact Severity

Sam82

Sun, 04/19/2015 - 13:43

Nice and logical,

Ranking = Priotiry

Exposure = EMV

is that right ?

linapham

Mon, 03/11/2019 - 03:02

I really like reading through a post that can make people think. Also, many thanks for permitting me to comment! QWOP