Understanding Assessments
Assessments are point-in-time evaluations that capture the current state or desired future state of a risk. Learn how to evaluate risks across multiple perspectives and track progress over time.
How to Use Assessments in the App
Follow these steps to navigate to assessments, enter values, and track your risk mitigation progress in Risk Companion.
Navigate to Assessments
Assessments are accessed from within a specific risk. Open any risk from your register, then click on the "Assessment" tab in the risk detail view.
Path: Risk Register → Select a Risk → Assessment Tab
Choose Your Assessment Tab
The Assessment view contains four tabs, each serving a different purpose:
Current
Your "as-is" assessment reflecting current risk state with existing controls in place.
Target
Your "to-be" goal representing desired future state after planned mitigations.
Gap Analysis
Shows mitigation progress: (Initial - Current) / (Initial - Target) x 100%
History
Complete audit trail of all past assessments with timestamps and changes.
Select Your Assessment Method
Before entering values, choose your estimation method at the top of the form:
Single Point
Enter one value per perspective. Best for well-understood risks with high confidence estimates.
Triangular (3-Point)
Enter Min, Mode (most likely), and Max values. Required for Monte Carlo simulation and better captures uncertainty.
Enter Assessment Perspectives
Probability is always required. Then add optional impact perspectives as needed:
Probability
Required
Financial
Optional
Schedule
Optional
Schedule Financial
Optional
Quality
Optional
HSE
Optional
Reputational
Optional
View Auto-Calculated Scores
After entering your values, Risk Companion automatically calculates and displays key metrics:
EMV
Expected Monetary Value
Probability x Financial Impact
ETV
Expected Time Value
Probability x Schedule Impact
Risk Score
Overall Risk Rating
Based on framework mapping
Understand Framework Scoring
Your organization's framework maps your numeric values to severity categories with color-coded indicators:
Note: Framework thresholds are configured by your organization administrator. The same numeric value may map to different categories depending on your organization's risk tolerance and scale.
Understanding Assessment Perspectives
Risk Companion allows you to evaluate risks from multiple perspectives, giving you a comprehensive view of potential impacts across different dimensions of your organization.
| Perspective | What It Measures | Example Impact |
|---|---|---|
| Probability | Likelihood of the risk occurring | 75% chance of occurrence |
| Financial | Direct monetary impact on budget or revenue | $250,000 cost overrun |
| Schedule | Impact on project timeline (in days/weeks) | 6-week delay to milestone |
| Schedule Financial | Monetary cost of schedule delays | $50,000/week delay cost |
| Quality | Impact on deliverable quality or specifications | 10% reduction in performance specs |
| HSE | Health, Safety, and Environmental impacts | Potential for recordable incident |
| Reputational | Impact on brand, stakeholder trust, or public perception | Regional media coverage |
Tip: Organizations typically configure frameworks that map numeric scores to descriptive categories (Minor, Moderate, Major, Severe, Extreme) for each perspective. This ensures consistent evaluation across all team members.
Probability and Impact Scoring
Every risk assessment combines two key elements: the probability that the risk will occur, and the impact if it does. Together, these determine the overall risk exposure.
Probability Scoring
Probability is expressed as a percentage (0-100%) representing the likelihood of the risk event occurring within the assessment timeframe.
Impact Scoring
Impact values are entered in the native units of each perspective (dollars, days, percentages, etc.) and mapped to severity categories by your framework.
Example: A supply chain disruption risk is assessed with a 60% probability (Likely) and a $350,000 financial impact (Major). This combination places it in a high-priority zone on your risk matrix.
Single Point vs. Triangular Estimation
Risk Companion supports two estimation methods, allowing you to choose the right level of precision for each assessment.
Single Point Estimation
A deterministic approach where you provide one value representing your best estimate of the impact.
Financial Impact: $250,000
Best Used When:
- High confidence in the estimate
- Well-understood, recurring risks
- Quick initial assessments
- Deterministic reporting is required
Triangular Estimation
A probabilistic approach using three values (minimum, most likely, maximum) that enables Monte Carlo simulation.
Min: $100,000 | Mode: $250,000 | Max: $500,000
Best Used When:
- Uncertainty exists in the estimate
- Running Monte Carlo simulations
- New or complex risks
- Probabilistic analysis is needed
Pro Tip: When using triangular estimation, the mode (most likely value) should represent your best estimate, while min and max capture the realistic range of outcomes. Avoid setting extreme outliers as they can skew Monte Carlo results.
Current vs. Target Assessments
Risk Companion uses two assessment types to track both where you are and where you want to be, enabling meaningful progress measurement.
Current Assessment
Represents the present state of the risk with existing controls and mitigations in place. This is your "as-is" evaluation.
Example
Probability: 60%
Financial Impact: $350,000
EMV: $210,000
Update current assessments regularly as conditions change or new information becomes available.
Target Assessment
Represents the desired future state after planned mitigations are implemented. This is your "to-be" goal.
Example
Probability: 25%
Financial Impact: $150,000
EMV: $37,500
Set targets based on realistic outcomes from your planned mitigation actions.
Measuring Progress
Risk Companion automatically calculates progress using the Initial, Current, and Target assessments:
Progress Formula
Progress = (Initial - Current) / (Initial - Target) x 100%
Initial EMV
$300,000
Current EMV
$210,000
Target EMV
$37,500
Progress: ($300,000 - $210,000) / ($300,000 - $37,500) x 100% = 34.3%
EMV Calculations
Expected Monetary Value (EMV) combines probability and impact into a single metric that represents the risk-weighted financial exposure.
EMV Formula
EMV = (Probability / 100) x Impact
Example Calculation
Why EMV Matters
- Enables apples-to-apples comparison of different risks
- Helps prioritize mitigation investments based on exposure reduction
- Supports portfolio-level risk aggregation and reporting
- Provides basis for contingency reserve calculations
EMV Comparison Example
Risk A
80% x $100,000
Risk B
20% x $500,000
Despite Risk A being more likely, Risk B has higher EMV and may warrant more attention.
Assessment History and Trends
Risk Companion maintains a complete history of all assessments, enabling trend analysis and demonstrating the effectiveness of your risk management efforts over time.
Complete Audit Trail
Every assessment is timestamped and attributed, providing full traceability for compliance and governance requirements.
Trend Visualization
View how risk scores, EMV, and other metrics have changed over time through interactive charts and graphs.
Progress Tracking
Monitor movement toward target assessments and demonstrate ROI on mitigation investments.
Example: Assessment History Timeline
| Date | Probability | Financial Impact | EMV | Notes |
|---|---|---|---|---|
| Jan 15, 2024 | 75% | $400,000 | $300,000 | Initial assessment |
| Mar 1, 2024 | 65% | $380,000 | $247,000 | After vendor audit |
| May 15, 2024 | 60% | $350,000 | $210,000 | New controls in place |
| Aug 1, 2024 | 40% | $200,000 | $80,000 | Mitigation complete |
Result: EMV reduced by $220,000 (73%) over 7 months through systematic risk mitigation.
Need More Help?
Our team is here to help you get the most out of Risk Companion assessments.