Common use of Risk Impact Grading Scale Clause in Contracts

Risk Impact Grading Scale. 390 The T2S Risk and Issue Management Framework applies a five-level impact grading scale: 391 Impact Project Objective Scope Project end item is effectively useless Scope change unacceptable Major areas of scope affected Minor areas of scope affected Scope impact barely noticeable Quality Project end item is effectively useless Quality reduction unacceptable Quality reduction requires an approval Only very demanding applications are affected Quality degradation barely noticeable Cost > 10 M euros 1M – 10M euros 100,000 – 1M euros 10,000 – 100,000 euros <10,000 euros Time3 > 20% time increase 10 - 20% time increase 5 - 10% time increase 1 - 5% time increase < 1% time increase 392 Figure 1: Risk Impact Grading Scale 393 394 The programme objectives scope, quality, cost and time are the basis for evaluating the risk 395 impact, following the international standard Project Management Book of Knowledge (PMBOK) 396 with the exception of the cost dimension. The use of this standard facilitates the assessment of the 397 risk by determining the effect of the materialisation of an identified risk on each project objective. 398 The highest category of the risk’s impact on a project objective defines the overall impact of the 399 risk. 400 3 The percentages are calculated against the overall project duration.

Risk Impact Grading Scale. 390 398 The T2S Risk and Issue Management Framework applies a five-level impact grading scale: 391 399 Impact Project Objective Scope Project end item is effectively useless Scope change unacceptable Major areas of scope affected Minor areas of scope affected Scope impact barely noticeable Quality Project end item is effectively useless Quality reduction unacceptable Quality reduction requires an approval Only very demanding applications are affected Quality degradation barely noticeable Cost > 10 M euros 1M – 10M euros 100,000 – 1M euros 10,000 – 100,000 euros <10,000 euros Time3 > 20% time increase 10 - 20% time increase 5 - 10% time increase 1 - 5% time increase < 1% time increase 392 400 Figure 1: Risk Impact Grading Scale 393 394 401 402 The programme objectives scope, quality, cost and time are the basis for evaluating the risk 395 403 impact, following the international standard Project Management Book of Knowledge (PMBOK) 396 404 with the exception of the cost dimension. The use of this standard facilitates the assessment of the 397 405 risk by determining the effect of the materialisation of an identified risk on each project objective. 398 406 The highest category of the risk’s impact on a project objective defines the overall impact of the 399 407 risk. 400 408 3 The percentages are calculated against the overall project duration.

Risk Impact Grading Scale. 390 398 The T2S Risk and Issue Management Framework applies a five-level impact grading scale: 391 399 Impact Project Objective Scope Project end item is effectively useless Scope change unacceptable Major areas of scope affected Minor areas of Scope impact item is unacceptable scope affected Scope impact scope affected barely effectively noticeable useless Quality Project end Quality Quality Only very Quality item is reduction reduction demanding degradation effectively useless Quality reduction unacceptable Quality reduction requires an applications barely useless approval Only very demanding applications are affected Quality degradation barely noticeable Cost > 10 M euros 1M – 10M euros 100,000 – 1M euros 10,000 – 100,000 euros <10,000 euros euros euros 100,000 euros Time3 > 20% time increase 10 - 20% time increase 5 - 10% time increase 1 - 5% time increase < 1% time increase 392 increase increase increase increase 400 Figure 1: Risk Impact Grading Scale 393 394 401 402 The programme objectives scope, quality, cost and time are the basis for evaluating the risk 395 403 impact, following the international standard Project Management Book of Knowledge (PMBOK) 396 404 with the exception of the cost dimension. The use of this standard facilitates the assessment of the 397 405 risk by determining the effect of the materialisation of an identified risk on each project objective. 398 406 The highest category of the risk’s 's impact on a project objective defines the overall impact of the 399 407 risk. 400 408 3 The percentages are calculated against the overall project duration.