A Guided Tour of KnowRisk Power House Part 3:
The Risk Matrix: Probability
A Risk Matrix is an essential tool in assessing risks. Whereas most software provide a static and fixed risk matrix, KnowRisk provides unparalleled flexibility to design your own risk matrix. I am going to tell you in this blog how?
A Risk Matrix has two dimensions, Likelihood (Probability) and Consequence (of an adverse event). It is paramount that a risk assessment tool such as a Risk Matrix should be configurable by the user.
Most software provide risk matrices which are static i.e. pre-defined. That is where KnowRisk stands apart and excels. It lets the user define a matrix with customised parameters. This is made possible by handing over total control on defining a Risk Matrix and its components which are: Probability and Consequences and how these two interact to arrive at a risk score. In this blog we will look into the attributes of Probability.
Probability
Before we can define the attributes of Probability, we must identify them. Probability can be fully defined by its five attributes which are Spectrum, Terminology, Value, Colour and Range.
Spectrum: The Range of Risk Events
Two polar extremes of probability spectrums are: an adverse event will ‘Never’ happen or ‘Always’ happen. Most software provide fixed terminology to define this spectrum. In KnowRisk the spectrum of risk events has five categories, increasing in intensity. The user can name each of them.
Terminology: Naming the Spectrum
KnowRisk lets the user name each of the probability spectrum; for example ‘Rarely’ could be termed as “Rarely Happens”. Not all organisations use the same naming convention and terminology. The ability to redefine terminology gives the user freedom to more accurately reflect what the spectrum means within the organisational context.
Values: Quantification leads to Objectivity
Next dimension of Probability is its value. What is the percentage chances of a named event occurring. KnowRisk gives you the flexibility to assign a value to each of the names within the spectrum.
Colour: Seeing is believing
KnowRisk gives you the ability to assign colours to each of the names within the spectrum to help distinguish the impact of the probability visually.
Range: In between the lines
Lastly the range of the probability is an implied value. It takes the value of two adjacent probability events to define the range.
Ultimately KnowRisk acknowledges the uniqueness of each organisation and to this end well-designed software like KnowRisk succeeds in accommodating each of them. KnowRisk feature of configurable Probability provides the perfect fit to any organisation: it lets you define the Probability of events comprehensively, just the way you would want it.
