Calculating risk weight

The risk weight is specified as a value from 20 percent to 100 percent. 20 percent represents the lowest weight for a risk, and 100 percent represents the highest.

You can set the value in 20 percent increments to 20, 40, 60, 80, or 100. The value of the weight is used as a multiplier for the risk value.

When risk values are used to compute the risk, weights are used to calculate the importance of a risk value. The risk is multiplied by the weight, and then added to the other risks multiplied by their weights. The calculated risk can be produced by the summation of each risk multiplied by its weight, and divided by the total weight of all risks.

For more information about how these risk weights are used, see Sample-rating-calculation.

When the calculation is complete, the Risk Value will either be a whole number or some decimal number. Given that the Risk Value is an integer, the system compares the calculated Risk Level value to a range of Risk Levels defined in the CHG:ChangeRiskRanges form (a backend form) to get the corresponding integer value.

For example, out-of-the-box, one of the ranges is 4.000001 to 5.00000, which gives a Risk Level of 5. So, if the calculated Risk Level value is any number in this range, then the system sets the Risk Level to 5.  You can customize these ranges if needed, but you need to ensure that there are no gaps between the ranges. For example, Risk Level 1 is set from 0.000000 to 1.500000, then Risk Level 2 should start at 1.500001 and so on.