Comp(TQC): A new way for integrating time, quality and cost perspectives when doing qualitative risk analysis

One of the most widely documented tools for risk analysis is the Probability-Impact (P-I) Table, which assesses the probability of occurrence of a risky event and its likely impact on the project objectives, which are typically articulated in terms of the Iron-Triangle of cost, time and quality. P-I Tables are typically used to help assess the downside of risk i.e. threats, rather than the upside of risk i.e. opportunities and the focus of this paper is on dealing with threats. Whilst there are numerous adaptations of the P-I Table, they all consistent in their approach to dealing with the cost, time and quality objectives in that the objectives are treated as independent and unrelated variables. This is a limitation of the P-I Table and reduces its practical applicability, as in most project contexts the probabilities and impacts of a risky event on the project objectives will be inter-related. To address this limitation this paper presents a new tool for analysing risk that uses vector theory to enable a single calculation of the overall probability and impact incorporating all three objectives in the Iron-Triangle to be made. The tool is exemplified through a practical application to a real case construction project, with the tool being used to support the analysis of threats to the project.