Updating your Risk calculation

Modified on Thu, 15 Sep 2022 at 05:01 PM

Read more about Risks on Acclaim Ideas

Setting risk calculations are best done at the initial setup as existing risks won't be retroactively updated.

In many fields, especially the Innovation sector, there's inherent risk involved with launching a project or initiative. The risk calculation setting allows you to set the variables that affect your projects and financial projections.

This function is your Risk Calibration Scale and allows you to set the values and ranges by which risks are categorised platform-wide; into Low, Medium and High. 

For example, a Low risk might be something that has a probability of <15% for your organisation and is typically something that could set a project back 2 weeks and cost £1,000 on average.

A High risk might carry a probability of >80%, disrupt your project by 6 months and impact your project's cost by £100,000.

The Medium risk setting is calculated for you based on your Low and High scoring, in order to catch everything in between.

To set your Low and High probability, time and cost factors, simply head to Settings > Risk calculation and click each button and add your base numbers.

When you create a Risk against one of your projects, it will then be automatically categorised with a RAG (Red, Amber, Green) status and overall score depending on the values you give it. (For more technical information on how we calculate this, see the bottom of this page).

You'll notice when creating a Risk that it also has Performance as a field - Minimal, Moderate, and Significant. This could cover reputational risk, or technical efficiency etc. depending on your industry. This one can't be edited in settings.

At Acclaim Ideas, we've set our risk calculations like this: 

Acclaim Ideas' Risk Calibration Table - Indicative only

How we calculate risk

Behind the scenes, we're making some calculations based on the Probability, Time, Cost and Performance you attribute to a risk.

  • Risk score is Probability score * i where i is the maximum score across the 3 impact types of Time, Cost & Performance

  • The score is calculated by assigning values 1, 2, and 3 to each of your types - 3 being the highest


Based on our Acclaim Ideas Risk Calibration Table shown above, a risk with 80% probability with 15 weeks time impact, £7,500 cost impact and minimal performance impact would be calculated as:

80% [3] * max (15 weeks [2], £7,500 [2], minimal [1]) = * 2 = 6

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