Chirayuthchai TraisaengsatheanStrategic Finance for Property Development

Risk Register and 5×5 Heat Map

Score the likelihood and impact of project risks from 1 to 5, rank them by severity, and place them on a heat map, with risk mitigation approaches.

CalculatorStrategic Financial Management Handbook

Extracted from Real Estate Project Strategic Financial Management Handbook: A Practical Guide · Appendix F Risk Matrix
Example from Appendix F: 10 key risks of a condo project. Scores are hypothetical examples

Heat Map (likelihood × impact)

Vertical axis = likelihood, from 5 almost certain to 1 very unlikely · horizontal axis = impact, from 1 minor to 5 severe

Risk level

    Top 5
    Risk Register
    IDCategoryRiskProbabilityImpactScoreLevelRisk mitigation approaches
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    Results are calculations for learning purposes. The figures entered are hypothetical examples, not real project data.

    How to score

    • Likelihood 1 Very unlikely · 2 Unlikely · 3 Possible · 4 Likely · 5 Almost certain
    • Impact 1 Minor · 2 Low · 3 Moderate · 4 High · 5 Severe
    • Score = likelihood × impact. Levels: ≤ 6 Low · 8–10 Medium · 12–15 High · 16–20 Very high · 25 Critical

    Early warning indicators to track alongside

    KRIGreenYellowRed
    DSCR> 1.40x1.25–1.40x< 1.25x
    Days Cash on Hand> 90 days30–90 days< 30 days
    Presale %Above target80–100% of target< 80% of target

    Tools to use together