# Risk Factor The Risk Factor is a numerical indicator that combines a risk's [[Likelihood Scale|likelihood]] and [[Consequence Scale|consequence]] assessments into a single value representing the overall level of risk exposure. Risk Factor is calculated from the likelihood and consequence assessments using a method that produces values ranging from 0.01 to 0.81. Higher values indicate greater risk exposure requiring more active management. ## Stoplight Thresholds (Threats) | Level | Range | Interpretation | |---|---|---| | 🟢 | < 0.15 | Low risk — monitor periodically | | 🟡 | 0.15 - 0.34 | Moderate risk — active monitoring required | | 🟠 | 0.35 - 0.49 | High risk — mitigation actions required | | 🔴 | >= 0.50 | Critical risk — executive attention and immediate action | ## Stoplight Thresholds (Opportunities) For [[OPPORTUNITY]]-type risks, the stoplight interpretation inverts — a high Risk Factor indicates a favorable opportunity worth pursuing: | Level | Range | Interpretation | |---|---|---| | 🟢 | >= 0.50 | Strong opportunity — actively pursue | | 🟡 | 0.35 - 0.49 | Moderate opportunity — worth developing | | 🟠 | 0.15 - 0.34 | Marginal opportunity — monitor for improvement | | 🔴 | < 0.15 | Low opportunity — may not justify effort |