Project Management in the Oil and Gas Industry

8.5.2 Tabulated 
Method
The recognized method for the calculation of risk is the probability of the 
event occurring with knowledge of the impact of that event on the project 
Table 8.2 Risk Ranking Score.
Probability of 
event occurring
Impact on the project
Low
Medium
High
7–9
Medium
High
Not acceptable
4–6
Low
High
Not acceptable
1–3
Low
Medium
High

---

304 
Project Management in the Oil and Gas Industry
as a whole. The importance is calculated by means of monetary value and, 
from that, the degree of the event impact on the project will be defined.
Some modern techniques are inevitable to take into account and the 
ability to manage the event and to understand that there are some pitfalls 
that can be solved easily and managerially. 
In this method, which is more practical, managing the activity is very 
important for the risks. So, there is a column in the table to define the 
manageability.
For example, discrepancies between departments can be solved by hold-
ing meetings between departments from time to time. Therefore, in this 
event it is very easy to manage, so give this risk a lower score (to decrease 
the whole risk score value) for the manageability of the event. 
On the other hand, if the problem is related to contact outside organiza-
tion, such as a deal with the government for license or permissions or other, 
you do not have the capability to manage this event as it is run away from 
the project, so it cannot be controlled, therefore it takes a higher score.
Table 8.3 Risk Management.
Project:
Project Mgr.: 
Risk Number:
Risk title: