Risk Impact refers to the potential damage caused if a risk materialises. It assesses how significantly a risk could affect project objectives, timelines, or resources.
Key Considerations:
- Severity: Determine how serious the consequences would be.
- Scope: Assess which areas of the project would be affected.
- Duration: Estimate how long the effects would last.
- Cost: Calculate the financial implications of the risk.
Importance of Understanding Risk Impact:
- Helps prioritise risks based on potential harm
- Guides resource allocation for mitigation efforts
- Informs stakeholders about possible consequences