Analyse a risk management model to quantify risk

In this analysis the risk matrix model is used. According to Dumbravă and Jacob (2013) this model is a common qualitative model in risk assessment as a risk management model for risk quantification. This model is classified into different parts which include probability and impact classification, likelihood score risk, impact analysis, and calculation of the exposure risk. This is informed by Project Management Institute (2008) report that has noted that risk management is a detailed process that is iterative adopting different progress status reports and deliverable status reports for monitoring and controlling risks.

Probability and Impact Classification

This is the first part of this model that involves consideration of the likelihood and impact of an event which is assigned a value randomly to the total which could be a specific classification. As noted by Project Management Institute (2008) the rationale of this part of the model is to examine the extent in which project outcomes and objectives could change as a consequence of the impact of the risk event. In the context of ADNOC refinery, this part is implemented as shown in table below;

Classification Probability Score Impact Classification Score
Low 1 Major 3
Medium 2 Medium 2
High 3 Easy 1
Simplified Model of Probability and Impact Classifications