1. What is Risk Level Calculation?

Risk Level is calculated by multiplying probability (0-1 scale) by severity (1-10 scale) to determine categorized risk (low/medium/high). This helps in risk assessment and decision making.

2. How Does the Calculator Work?

The calculator uses the Risk Level formula:

Where:

• \( Probability \) — Likelihood of occurrence (0-1 scale)
• \( Severity \) — Impact/consequence scale (1-10)

Risk Categories:

• Low: ≤ 3
• Medium: 4-6
• High: ≥ 7

3. Importance of Risk Assessment

Details: Calculating risk level helps prioritize risks, allocate resources effectively, and implement appropriate mitigation strategies.

4. Using the Calculator

Tips: Enter probability as decimal between 0-1 (0% to 100%) and severity as integer between 1-10 (1=minimal, 10=critical).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between probability and severity?
A: Probability measures how likely an event is to occur, while severity measures how bad the consequences would be if it occurred.

Q2: How should I determine severity levels?
A: Severity is typically determined by potential impact on objectives, safety, finances, or reputation. Organizations often define their own severity scales.

Q3: What's considered an acceptable risk level?
A: This varies by organization and context. Typically, low risks may be accepted, medium risks monitored, and high risks require mitigation.

Q4: Can I use this for project risk management?
A: Yes, this basic risk calculation is commonly used in project management, safety assessments, and business decision making.

Q5: Are there more complex risk assessment methods?
A: Yes, methods like FMEA, Monte Carlo simulation, and quantitative risk analysis provide more sophisticated approaches when needed.