Unacceptable risk

Success Problem

Unacceptable risk is the risk with unacceptable impacts upon project objectives or on the project success.

Impact

The project manager has to draw the attention of the project steering committee to the suggestion to stop the project, because it overruns the defined risk tolerance line. In other way it is hazard.

Recommendation

Risk tolerance line is the highest still neglectable negative deviation of the project output quality or schedule variance or cost variance for the project or its part. If the variance is under the limit, the project manager must not apply the risk mitigation actions. If the variance exceeds the limit, the project manager must apply the risk mitigation actions. Risk tolerance line is suggested by the project manager in order that the risk is not unacceptable and is agreed by the project steering committee.

Category

• Risk & Opportunities