A cost-only risk impact is an impact which is defined solely in terms of cost increases. For example, a typical cost-only impact statement would be:
"If this risk occurs, its effect will be to increase our costs by $50,000".
Each cost-only impact requires a cost-based assessment scale.
Cost-Only Impact Assessment
A typical cost-based assessment scale might be:
- Level 1: Less than $5000
- Level 2: $5000 or more, but less than $20,000
- Level 3: $20,000 or more, but less than $50,000
- Level 4: $50,000 or more, but less than $100,000
- Level 5: $100,000 or more
Once you have created a cost-based assessment scale, you decide what the cost increase of a particular risk would be, and Mandrel then converts it into an impact level.
Overall Cost Impact Mandrel provides a cost-only impact known as Overall Cost, which is always present. This impact provides you with an impact level based on all the costs associated with the current cost item.