The scoring system
There are two methods to calculate risk: Qualitative Risk Analysis and Quantitative Risk Analysis.
Qualitative Risk Analysis is a method to analyse risks based on the likelihood of their occurrence and impact on the project. For example, in a website development project, we know the developers are not at ease with ECMAScript 6. Consequently, it is highly probable they will run into problems, and this in turn will affect the project considerably.
In a qualitative risk analysis, standard risk management dictates you should use a Risk Rating Matrix (RRM), where you’ll put all the risks, the probability of each one of them occurring, the impact on the project should it occur, and finally the “score” of the risk.
A qualitative risk analysis allows you to assess the risks and their impact on the project, but without taking project parameters such as the importance of a deadline or cost into consideration. This is where quantitative risk analysis comes into play. It takes project parameters into consideration while still factoring in Probability and Impact, so you can better prioritise the risks. The best way to perform quantitative risk analysis is through a weighted risk factor analysis.
This is exactly what you get in the Risks Attachment Inspector of Merlin Project. In the Status field group, you’ll get a calculated risk assessment that translates qualitative and quantitative risk analysis into a point score that ranges between 3 and 25, as well as a classification ranging from Low Risk to High Risk.