1. What is Risk Score?

The Risk Score is a quantitative measure of risk calculated by multiplying the probability of an event occurring by the impact of that event. It helps prioritize risks and make informed decisions about risk management.

2. How Does the Calculator Work?

The calculator uses the basic risk score formula:

Where:

• \( \text{Probability} \) — Likelihood of the event occurring (0 to 1)
• \( \text{Impact} \) — Severity of consequences (typically 1-10 scale)

Explanation: The formula provides a simple yet effective way to quantify and compare different risks.

3. Importance of Risk Assessment

Details: Risk scoring is essential in project management, safety planning, financial analysis, and healthcare to prioritize resources and mitigation efforts.

4. Using the Calculator

Tips: Enter probability as a decimal between 0 and 1, and impact as a number (typically 1-10 scale). All values must be valid (probability 0-1, impact positive number).

5. Frequently Asked Questions (FAQ)

Q1: What probability scale should I use?
A: Use a decimal scale where 0 means impossible and 1 means certain. For example, 0.3 means 30% chance.

Q2: How should I determine impact values?
A: Use a consistent scale (typically 1-10) where higher numbers indicate more severe consequences.

Q3: What do the risk score ranges mean?
A: Generally, scores below 0.5 are low risk, 0.5-0.8 medium risk, and above 0.8 high risk, but thresholds can vary by context.

Q4: Can I use this for qualitative risks?
A: This calculator requires quantitative inputs. For qualitative risks, consider using a risk matrix instead.

Q5: How often should risks be reassessed?
A: Regularly, especially when conditions change or new information becomes available.