Question

1. Risk Likelihood (3 pts.)

A product improvement project involves an existing product (M), with minor complexity (C), and is dependent for schedule on an existing system (D).   (reference Risk Assessment Calculations document, Likelihood table).  

Consider that criteria are weighted as follows:

M is (0.5), C is (0.3), D is (0.2)

Calculate the Composite Likelihood Factor (CLF).

W1= 0.5, W2=0.3, W3=0.2

(CLF) = W1 * M + W2 * C + W3 * D = 0.5 * 0.1 + 0.3 * 0.3 + 0.2 * 0.3 = 0.05 + 0.09 + 0.06 = 0.20

2. Risk Impact (3 pts.)

A product test failure is expected to have a minor impact on overall technical performance and be correctable within 2 months at a cost of 10 percent. (reference Risk Assessment Calculations document, Impact table).  

Consider that criteria are weighted as follows:

TI is Moderate (0.5), CI is Minor (0.3), SI is Low (0.2)

Calculate the Composite Impact Factor (CIF).

3. Risk Consequence Rating (1 pt.)

Using the previous problems #1 Risk Likelihood (CLF) and #2 Risk Impact (CIF), calculate the Risk Consequence Rating (RCR).

Answer 1

Composite Likelihood Factor(CLF) = 0.20 (calculations given in question itself)

CLF = 0.2

Composite Impact Factor (CIF)

Given that W1 = 0.5, W2 = 0.3, and W3 = 0.2.

Also from the following table, TI = 0.1, CI = 0.5, SI = 0.5 (by comparing with the information given in the question)

CIF = W1 * TI + W2 * CI + W3 * SI

= (0.5)(0.1)+(0.3)(0.5)+(0.2)(0.5) = 0.3

ie. CIF = 0.3

Risk Consequence Rating (RCR)

from the values of CLF and CIF, RCR = CLF + CIF - (CLF)(CIF)

RCR = 0.2 + 0.3 - (0.2)(0.3) = 0.44.

ie. RCR = 0.44

Result

CLF = 0.2

CIF = 0.3

RCR = 0.44

Hope everything is clear and this really helped you. Thank you.