The main characteristics that differentiate our model from PMI methodology for
risk management lies in the way severity is addressed and detection criterion. In our
model, we assign values on a numerical scale rather than in terms of monetary values.
Naturally, financial issues can continue to drive the analysis, however, using a scale
makes it easier to carry out a risk analysis as it enables the construction of a numerical
risk index (or according to FMEA concept the Risk Priority Number - RPN). The
inclusion of the detection dimension adds value to PMI’s risk management analysis as it
provides a structured way of predicting failures and avoiding them before they occur.